White stuff turns Winnipeg budget from black to red

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.

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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.

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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.

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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.