City of Winnipeg on course for $17M deficit this year

The City of Winnipeg is on course to wind up $17.3 million over budget by the end of year, a deficit equal to 1.4 per cent of its annual operating budget.

The latest financial forecast published by city finance officialsalso calls for Winnipeg Transit to wind up $9.6 million over budget.

The shortfalls are partly due to the pandemic, which has reduced revenue and increased expenses for most city departments.

The city is also spending more than expected on overtime for the fire-paramedic servicemainly because of staff shortages and higher police pensions due to an arbitrator'sdecision last year in favour of the Winnipeg Police Association.

While deficits expected at this time of year usually wind up being smaller by the end of year, that may not prove to be the case for 2021.

"Due to the uncertainty related to the pandemic, this trend may not hold true in the current year," city finance-reporting manager Melissa Wensel writes in the report.

The city will use its fiscal stabilization reserve fund to cover the deficit.