City finances ‘moving in the right direction,’ Browaty says

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This article was published 15/05/2024 (530 days ago), so information in it may no longer be current.

The City of Winnipeg may finally be able to start restoring its pandemic-drained rainy-day fund, according to a new financial update.

Winnipeg finished 2023 with an operating surplus of $12.3 million excluding capital-related revenues, up from a deficit of $144 million the previous year, the report states.

“It shows the city and its finances are moving in the right direction…. On the tax-supported side, we still don’t have huge windfalls to be reporting… but we’re hoping things are stabilized,” said Coun. Jeff Browaty, who heads city council’s finance committee.

The number reflects a broad view of city operations, which extends beyond the city departments noted in regular surplus/ deficit projections for Winnipeg’s tax-supported operating budget. Based on the tax-supported budget alone, the city completed last year with a $300,000 deficit.

The broader $12-million surplus includes entities that raise their own funds, such as Winnipeg water and waste, as well as partnerships with the Assiniboine Park Conservancy, Winnipeg Arts Council and others, said Browaty (North Kildonan.)

While the improvement suggests a rosy financial picture, it doesn’t mean the city has millions of dollars up for grabs, since a substantial portion of the revenues is already earmarked for upcoming capital projects, he said.

“(For example), we intentionally have been raising water and sewer rates… to have money to put aside for potential capital works, as well as reducing future rate (hike) shocks,” said Browaty.

He credited the recovery from pandemic losses among multiple city departments and city partners for much of the improvement, which was linked to a rebound in city fees and Winnipeg Transit ridership.

Browaty said the update bodes well for the city’s goal to restore its financial stabilization reserve, which is also known as the rainy-day fund. That reserve fell to $15.7 million at the end of 2023, which is $62.3 million lower than its council-mandated minimum balance.

joyanne.pursaga@freepress.mb.ca

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