Winnipeg's 2024 deficit down $2.9 million from previous forecast: city

The City of Winnipeg closed out 2024 at a steep deficit, but there’s less proverbial red ink than previously forecasted.

According to the city, the financial status and forecast report from November pegs the city’s year-end deficit of $20.5 million in the tax-supported budget.

Still, that’s a $2.9 million improvement from what was forecasted in the previous quarter.

That leaves the city’s rainy day fund, known as the financial stabilization reserve fund, at a forecasted $9.7 million—a drop of $4.7 million from last quarter, which was used to cover a shortfall in tax revenue, the city said.

It can draw the remaining balance to help cover a portion of the year-end deficit, with the rest factored into the 2025 budget.

The deficit is partly due to cost pressure from snow clearing, fire, and paramedic overtime, as well as a growing population with growing demands.

Coun. Jeff Browaty (North Kildonan), who is chairperson of the standing policy committee on finance and economic development., said the financial challenges in the forecast are consistent with past financial forecasts and align with plans in the 2025 budget.

“These challenges are being addressed through measures announced in the budget and we look forward to rebuilding our financial stabilization reserve fund to provide more financial stability moving forward,” he said in a news release Monday.

Part of the 2025 budget initially unveiled in December comes with a 5.95 per cent property tax increase.

Of the proposed 5.95 per cent property tax increase, a third (two per cent) will go to roads, 1.5 per cent is earmarked for essential operations, and 2.45 per cent for public safety and financial risks.

Winnipeg Mayor Gillingham has said Winnipeg is at a point with population growth, service, and infrastructure demands that the city needs to raise that revenue on its own.

- With files from CTV’s Jeff Keele and Michelle Gerwing