City facing $20.4-M budget shortfall but finance chairman ‘not pressing the panic button yet’

The City of Winnipeg expects to end the year with a $20.4-million operating shortfall.

However, council’s finance chairman said the budget gap is “not insurmountable.”

“Obviously, a deficit is not desirable but… we typically do (improve) through additional in-year savings, so it’s not unusual to see a larger number at the beginning of the year. I’m not pressing the panic button yet,” said Coun. Jeff Browaty.

The expected tax-supported budget deficit is based on financial data up to March 31.

Several city departments now expect to end the year in the red, including forecasted shortfalls of $7.2 million for Winnipeg Fire Paramedic Service, $3.4 million for planning, property and development, $4.6 million for Winnipeg Police Service and $6.8 million for public works.

The report blames those losses largely on WFPS vacancies triggering more overtime use and reduced fee payments for planning, property and development. It notes police do not expect to meet a council-imposed $7-million in-year savings target, creating their budget gap.

For public works, significant snowfall in January and February pushed street-clearing costs higher.

“We have been increasing the amount we budget for (snow clearing) to line up more closely to actuals but costs have escalated. The latest contracts have some seen pretty significant increases,” said Browaty (North Kildonan). “Like people’s households, there’s certain (costs) that have been escalating and they do certainly cause risk for us to continue staying on budget.”

The city budgeted $49.3 million to clear ice and snow in 2026 but is on track to spend an additional $7.1 million, he said.

Finance officials expect losses will be offset by savings in the community services, finance and taxation departments.

Meanwhile, “volatile” fuel prices are affecting most city departments, with a $4.2-million increase expected. For Winnipeg Transit alone, gas is expected to cost $3.4 million more, the report notes.

If the shortfall isn’t eliminated by the end of the year, the city will use its financial stabilization reserve fund to pay it off. Doing so would leave the reserve with $24.2 million, well below a minimum city council target of $89.6 million.

Without covering any shortfalls, the rainy-day fund would be expected to reach $44.5 million by the end of 2026.

joyanne.pursaga@freepress.mb.ca

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