Manitoba

City of Winnipeg projects year-end deficit of $53.8M due to COVID-19

The City of Winnipeg is forecasting a year-end deficit of more than $53 million due to the COVID-19 pandemic, even though the city has undertaken several cost-saving measures.

'It has been a significant challenge for all departments,' says Coun. Scott Gillingham

Finance chair Scott Gillingham says the pandemic has hurt the city's budget to the tune of a year-end deficit of $53.8 million. (Sean Kavanagh/CBC)

The City of Winnipeg is forecasting a total year-end deficit of more than $53 million due to the COVID-19 pandemic, even though the city has undertaken several cost-saving measures.

The pandemic has led to revenue shortfalls in a number of areas, the city said in a news release Monday. 

The city's first-quarter financial status report and forecast projects an operating budget deficit of $25.8 million by the end of March.

Combined with other forecast operating shortfalls, the financial status report and forecast projects a total year-end deficit of $53.8 million.

"It has been a significant challenge for all departments and will continue to be for as long as the pandemic lasts," said Coun. Scott Gillingham, the chair of the standing policy committee on finance.

"The city has been working to address the challenges of the COVID-19 pandemic in order to ensure residents receive the services they depend on."

The city projects it will save $13 million from cost-saving measures it's already implemented, including freezing fleet purchases, temporary layoffs of part-time community services staff members, freezing new hires for the rest of the year, freezing non-union public services salaries, and Winnipeg Transit service cuts and temporary layoffs.

The status report and forecast will be presented at the finance committee meeting on Friday.

Corrections

  • We initially reported that the projected year-end deficit is $58.3 million, based on information from the City of Winnipeg. In fact, the projected year-end deficit is $53.8 million, the city said in a corrected news release.
    Jun 08, 2020 12:09 PM CT

Comments

To encourage thoughtful and respectful conversations, first and last names will appear with each submission to CBC/Radio-Canada's online communities (except in children and youth-oriented communities). Pseudonyms will no longer be permitted.

By submitting a comment, you accept that CBC has the right to reproduce and publish that comment in whole or in part, in any manner CBC chooses. Please note that CBC does not endorse the opinions expressed in comments. Comments on this story are moderated according to our Submission Guidelines. Comments are welcome while open. We reserve the right to close comments at any time.

now