No reason to panic about city’s projected $29-M shortfall: councillor
The City of Winnipeg expects to end this year with a nearly $29-million shortfall in its tax-supported operating budget, as costs for fuel, snow-clearing and other expenses pile up. The […]
City officials have reassured residents that there is no need for panic over the city's projected $29 million shortfall in its tax-supported operating budget. Councillor Jeff Browaty, city council's finance chairman, stated that while the financial outlook is heading in the wrong direction, it isn't surprising given the higher fuel prices and other unexpected expenses.
The budget deficit is larger than the city's first-quarter forecast, which was based on data up to June 30. The public works department anticipates a $16.1 million shortfall, largely due to increased costs for snow removal and other seasonal expenses. The city may need to consider further budget adjustments in future years to cover these costs, especially with the rising prices of fuel and equipment.
Winnipeg Fire Paramedic Service and the Winnipeg Police Service also expect significant shortfalls, largely due to overtime costs and reduced revenue, respectively. The Winnipeg Transit, on the other hand, has a $20.7 million deficit, primarily caused by higher fuel costs, increased overtime, and reduced ridership. Despite these challenges, some city departments, like the Winnipeg Water and Waste, are projected to earn more than their budgeted amounts due to increased revenues, which are partially used to fund sewage treatment upgrades.
Overall, city finance officials predict a consolidated shortfall of $18.8 million by the end of the year, covering the operating budget, city utilities, and special operating agencies.
Written by urgent.news from Winnipeg Free Press's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
