City blames projected $21M deficit on brutal winter
Winnipeg blasted by coldest, longest winter in more than 100 years
City of Winnipeg officials are blaming an exceptionally cold and long winter for a forecast $21.4 million deficit in the city’s general revenue fund.
An interim financial status report shows the city spent $40.6 on snow removal and ice control during the first quarter of 2014, while the snow removal budget for the entire year sits at $26.7 million.
Making matters worse, Winnipeg saw the highest number of frozen pipes in more than 35 years, costing the city an estimated $3.5 million to fix.
The city’s acting CAO, Deepak Joshi, said in a release that city departments are being asked to reduce their discretionary expenses as a result of the deficit.
Officials cautioned it’s “not unusual” for the first and second quarter forecast to report a projected deficit, and it is hoped the deficit will decrease over the remainder of the year.
To view the full interim financial status report on the City of Winnipeg’s website, click here. The report will be reviewed by the city’s standing policy committee on June 19.