White stuff turns Winnipeg budget from black to red

Blanket of snow in December has city projecting $6.2M year-end deficit

Image | Snow plows

Caption: Winnipeg started December with about $10 million left in its snow-clearing budget for 2016. It wound up overspending that budget by $11 million. (Chris Armstrong/CBC)

All the white stuff Winnipeg received in December means the city will wind up in the red instead of the black​ when all the accounts are settled for last year.
City finance officials are projecting a budget deficit of $6.2 million for the end of 2016, based on figures from Nov. 30. That's an $8.7-million swing from the previous year-end projection: a $2.5-million surplus, based on accounts from the end of October.
The main reason for the change was exceptional snowfall in December, officials say in a report to council's finance committee. At the beginning of December, there was about $10 million left in the city's $33.5-million snow-clearing budget.
Officials now say they expect to have overspent that budget by $11 million.
"The overexpenditures are the result of above-average snow accumulation during December. December 2016 was the second snowiest December and the seventh snowiest month overall on record, with 68.8 centimetres of snow versus a 30 year average of 23 centimetres," the report states.
Savings in other city departments partly offset the snow-clearing budget deficit, the report states. The final deficit for 2016 will be reported in February.
A $6.2 million shortfall on Winnipeg's budget of $1.08 billion for 2016 represents a deficit of roughly half of one percentage point. The city typically deals with year-end deficits by forgoing transfers to reserve accounts, or if necessary transferring money from reserves to cover the shortfall.
The city also planned to transfer $9.5-million in leftover money from 2016 to cover off the 2017 budget. Mayor Brian Bowman said Wednesday the city will have to make do without this transfer.