Winnipeg deficit of nearly $19M predicted for 2025

CBC

4 days ago

The City of Winnipeg's early financial forecast predicts a $18.9-million deficit at the end of the year, but it's expected there will be enough money in its reserves to cover the shortfall.
The reasons for the deficit, representing approximately 1.3 per cent of the city's operating budget, include Winnipeg Fire Paramedic Service overtime, lower income from permit fees and the Winnipeg Police Service not meeting a $5.1-million expense management target.
A budget report released Wednesday covers the city's operations for the first quarter of the year, from the start of January to the end of March.
The projected fiscal stabilization reserve balance is $21.5 million, which the city says will be used to cover the deficit.
The fire-paramedic service overspent its budget by $6.5 million, mainly due to overtime, but it was offset by additional revenues from Shared Health.
The police service is expecting to only achieve $800,000 of its $5.1 million expense management target. Salary and benefits savings from a delay in hiring were offset by higher overtime costs from Winnipeg Jets whiteout street parties and higher equipment and material costs.
The property and development department is projecting an over-expenditure of $5.4 million, due to lower permit revenues and fees.
Snow-clearing operations are forecast to come in $5.6 million under budget, as a result of lower than expected snowfall in the early part of 2025.
The city has set an overall savings target for all departments of $6.5 million.
In past years, early financial forecasts have often predicted a deficit, while those predictions frequently improve in updates later in the year.