City releases Financial Status and Forecast Report to June 30, 2022

City releases Financial Status and Forecast Report to June 30, 2022

COVID-19 and other financial pressures continue to cause shortfalls in City’s operating budget

Released: 9:48 a.m.

Winnipeg, MB – The City of Winnipeg’s second quarter financial status and forecast report is forecasting a projected deficit in the tax-supported operating budget (General Revenue Fund) of $55.9 million and an additional shortfall of $14.7 million in Transit as at June 30, 2022. The financial status and forecast report will be presented at the meeting of the Standing Policy Committee on Finance on September 12, 2022.

COVID-19 continues to have a significant impact on the City’s financial forecast above what was budgeted for. As part of the 2022 budget update, the City had budgeted $41.3 million for anticipated COVID-19 related financial impacts. However, as at June 30, 2022, an estimated $10.9 million in further COVID-19 financial impacts are identified in the report.

Additional financial pressures are being felt as a result of significant snowfall this past winter and high fuel rates. The total over-expenditure relating to snow removal and ice control is forecasted to be $40.3 million for the year. The report also notes fuel prices have escalated beyond what was anticipated in the 2022 budget update, which is largely impacting the operating budgets of Transit and the General Revenue Fund. The financial impact in this forecast for fuel for the year is $9.3 million.

“In addition to the continued financial impacts of COVID-19, this second quarter financial report details how the City is also contending with significant over-expenditures in snow and ice operations this year,” said Councillor Jeff Browaty, Chairperson of the Standing Policy Committee on Finance. “In the event the General Revenue Fund reports a deficit at year-end, the City may transfer the amount required to avoid a deficit from the Financial Stabilization Reserve Fund. However, it’s important to note the balance of the reserve fund is currently projected to be $20.1 million at the end of 2022, far lower than the Council-mandated minimum balance. It remains important for the City to maintain prudent fiscal management throughout 2022 in order to reduce the forecasted deficit while minimizing impacts on City operations.”

The City’s financial update is publicly available through the Decision Making Information System (DMIS).

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