2 days ago
Report recommends diverting millions in surplus cash to replenish city's rainy day fund
Winnipeg's mayor is backing a plan that would send over $10 million to the city's rainy day fund after the reserve was nearly drained during the pandemic.
In a report submitted to the executive policy committee, the city's public service recommended council adopt interim measures that would transfer surplus cash to top up the financial stabilization reserve.
If approved, $3.7 million from the Southwest Rapid Transitway and Pembina Highway underpass projects, $5.4 million in operational surplus from Winnipeg Transit from 2024, and $1.8 million in surplus from Animal Services, also from 2024, would be diverted to the reserve.
These interim measures would bring the account's balance to $36.4 million by the end of the year—a turnaround for the fund that sat at just $2.1 million in 2022 thanks to fallout from the pandemic, inflation, and major snow events.
This onslaught of costs caused the fund to fall below the council-mandated six per cent of tax-supported operating expenditures, the report noted. That's about $85.1 million as of this year.
The first measure—the surplus cash from the transitway and underpass reserves—requires a two-thirds council vote, while the others only require a majority.
Another $6.9 million in new, unconditional funding from the One Manitoba Growth Fund would also be allocated to the account to help manage risks until the end of the year, the service proposed. This cash was not included in the 2025 budget.
Mayor Scott Gillingham said the measures would be a responsible step to strengthen the city's financial foundation and protect services.
'The financial stabilization reserve helped carry the city through the pandemic, and now we're focused on building it back up,' he said in a news release.
EPC will vote on the measure at a June 17 meeting.
