Winnipeg comes within a whisker of a balanced budget for 2023
Bartley Kives | CBC News | Posted: March 4, 2024 4:59 PM | Last Updated: March 4
Deficit shrinks to $297,000 on budget of $1.3 billion when final numbers tallied
The City of Winnipeg came within a whisker of balancing its budget at the end of 2023 after previously forecasting a more significant deficit.
The city posted a $297,000 deficit on its $1.3-billion operating budget for 2023, city controller John Speidel writes in the final financial status report for the previous year.
A deficit of that size works out to a budget variance of .02 percentage points, or one fiftieth of a cent on every dollar.
The city had expected a budget deficit of $7.1 million for 2023. It is common for the budget to move toward balance or a surplus for any given year once the final numbers are tallied.
The city achieved a nearly balanced budget mainly due to higher interest rates on investments, debt deferral to future years and lower police-pension contributions, Speidel says in the report. This almost offset high fire-paramedic overtime bills, a shortage of permit revenue in the property department and over-budget spending on snow-clearing and street cleaning in the public works department, he noted.
Speideil says the $297,000 deficit will be covered by a transfer from the city's financial stabilization reserve, unofficially known as the city's "rainy-day fund." The city sets aside this money off financial disasters such as the severe revenue shortfalls the city experienced during the first three years of the pandemic.
After the $297,000 transfer is made to take care of the 2023 deficit, only $15.7 million remains in the fiscal stabilization reserve. That's a far cry from its target of six per cent of city spending for a given year, which works out to $78 million.
City finance officials plan to brief council this week on a plan to replenish the reserve over several years.
Coun. Jeff Browaty (North Kildonan), city council's finance chair, says the city expects to devote proceeds from the settlement of a lawsuit over Winnipeg's police headquarters to bolster the fiscal stabilization reserve.
Those proceeds range from $21.5 million, if the money is paid by March 23, 2024, to $28 million if the money is paid after March 23, 2026.