The City of Winnipeg is projecting a significant surplus to end off the current fiscal year.
The City originally forecasted a year-end deficit of $20.5 million. However, in an unaudited financial status report, it now shows a surplus of $7.2 million, in big thanks to the recognition of a $22.5 million receivable related to the Police Headquarters settlement
“We are now confident that we can count on Council’s settlement agreement on the Police Headquarters. As a result, now is the proper time to recognize this receivable,” said Jeff Browaty, Chairperson of the Standing Policy Committee on Finance and Economic Development.
The surplus will be transferred into the Financial Stabilization Reserve, bringing the balance to $17.6 million.
“While we are pleased to report a year-end surplus, the reality is we continue to operate under a structural deficit, and our Financial Stabilization Reserve is still well below the Council-mandated minimum balance,” added Browaty. “The current uncertainty in the Canadian economy underscores the importance of the measures we announced in the most recent budget, which will help stabilize our reserves and ensure we are responsibly budgeting for future years.”
This year, snow and ice operations, spring cleaning, and road maintenance exceeded budget by $23.3 million, an increase of $5.9 million from the November forecast. There were also over-expenditures in the Winnipeg Fire Paramedic Service due to increased injury claims and overtime costs.
The year-end financial status report will be presented at the meeting of the Standing Policy Committee on Finance and Economic Development on March 7.
The City’s financial update is available through the Decision Making Information System (DMIS).