Winnipeg could be forced to empty rainy day fund to deal with deficit
The City of Winnipeg’s rainy day fund could be running dry.
A financial update to the end of March projects a $27 million deficit for the end of the year.
This includes $12.8 million for police because of a drop in photo radar revenue and cost savings targets that likely won’t be achieved.
There is also $7.4 million for the fire-paramedic service related to overtime and WCB costs.
The report says if council approves, the fiscal stabilization reserve can be used to cover $19.5 million, depleting the fund.
It says the remaining $7.5 million will be made up by an “action plan” coming in June.
The report suggests services could be impacted.
“Until the forecasted deficit can be addressed, the city will be in a more difficult position to approve any over-expenditure requests, potentially causing some disruption to services.” states the report.
As the city dealt with cost pressures from the pandemic, the reserve was used to shore up finances. The fund is supposed to have a minimum balance of $78 million.
The report also predicts a $2.5 million deficit for Winnipeg Transit which will be made up by that department’s retained earnings.
It says ridership this year is 17 per cent below normal levels to the end of March.
“It is common that the city forecasts a deficit through the first quarter of the fiscal calendar,” said Councillor Jeff Browaty, chairperson of the standing policy committee on finance and economic development. “That being said, the current forecast does pose a serious challenge for the city for the remainder of the year. Departments will be required to maintain prudent fiscal management going forward as the city focuses on these early operating shortfalls.”
CTVNews.ca Top Stories
DEVELOPING Live updates as Stormy Daniels testifies at Trump hush money trial
Adult film star Stormy Daniels will take the stand a second time Thursday as former U.S. president Donald Trump’s hush money case continues in Manhattan. Follow live updates here.
NEW From yearning for a change to cost of living, why some Canadians have left or may leave the country
For some immigrants, their dreams of permanently settling in Canada have taken an unexpected twist.
Here are the ultraprocessed foods you most need to avoid, according to a 30-year study
Studies have shown that ultraprocessed foods can have a detrimental impact on health. But 30 years of research show they don’t all have the same impact.
NEW Capital gains tax change 'shortsighted' and 'sows division' business groups tell Freeland
Forging ahead with increasing Canada's capital gains inclusion rate 'sows division,' and is a 'shortsighted' way to improve the deficit, business groups are warning Finance Minister Chrystia Freeland.
Ontario man frustrated after $3,500 paving job leaves driveway in shambles
An Ontario man considering having his driveway paved received a quote from a company for $7,000, but then, another paver in the neighbourhood knocked on his door and offered half that rate.
Defence attacks Stormy Daniels' credibility as she returns to the stand in Trump's hush money trial
Stormy Daniels will return to the witness stand Thursday in Donald Trump's hush money trial as the defence tries to undermine the credibility of the porn actor's salacious testimony about their alleged sexual encounter and the money she was paid to keep quiet.
With contactless screening tech, this Toronto startup hopes to catch breast cancer early — and save lives
Amid evidence of rising breast cancer rates among young women in Canada, one Toronto startup is offering a contactless and radiation-free device that can help doctors identify suspicious changes in breast tissue. The company, Linda Lifetech, says this can lead to earlier detection of breast cancer.
Tornadoes tear through southeastern U.S. as storms leave 3 dead
Forecasters warned a wave of dangerous storms in the U.S. could wash over parts of the South early Thursday, a day after severe weather with damaging tornadoes and large hail killed at least three people in the region.
Police handcuff man trying to enter Drake's Toronto mansion
Toronto police say a man was taken into custody outside Drake's Bridle Path mansion Wednesday afternoon after he tried to gain access to the residence.