City on track for $17.7-million deficit

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This article was published 09/09/2025 (253 days ago), so information in it may no longer be current.

The City of Winnipeg expects to end the year with a $17.7-million operating deficit despite an aggressive campaign to find savings.

A finance update released Tuesday predicts that year-end shortfall in the tax-supported operating budget, based on data up to June 30.

The deficit projection is $1.2 million less than expected in the first quarter of this year.

City departments currently expect to find $44.9 million of $51.8 million in targeted savings city council directed them to achieve before the end of the year.

“The savings targets were aggressive and we seem to be on track to meet (many) of them,” said Coun. Jeff Browaty, chairman of finance.

Browaty (North Kildonan) noted a lower-than-expected snow-clearing bill is helping to offset other losses.

“We have had a lot of things coming in on target. It’s the first time in (recent) memory where we have come in under budget on snow (clearing),” he said.

Public works predicts a $3.3-million year-end surplus due to lower snow clearing and ice control costs, while the city’s corporate finance department expects a $2.7-million surplus due to higher interest rates on short-term investments, the report notes. The corporate accounts department expects to end the year with a $9.1-million surplus due to lower debt and finance charges.

By contrast, multiple departments expect deficits.

Winnipeg Fire Paramedic Service expects to fall $3.1 million short primarily due to overtime and workers compensation costs. Planning, property and development expects a $4.3-million shortfall, mainly due to lower-than-expected revenues, while the Winnipeg Police Service expects to fall $2 million short by failing to meet its in-year savings target, along with other various losses.

The finance update also predicts a $3.9-million overall deficit for Winnipeg’s special operating agencies, which include the Animal Services Agency, Golf Services Agency, Fleet Management Agency, and Winnipeg Parking Authority.

The latest report features more detail on those agencies than past quarterly finance updates, a change the city says is meant to increase transparency.

Browaty said the agencies’ overall shortfall is relatively small but he’s concerned it is largely blamed on lower-than-expected parking ticket and fee revenue.

The Parking Authority expects a $2.4-million shortfall.

“Are people avoiding our downtown (where most paid parking is)? Are they afraid to park on the street because of vandalism to vehicles? … I’m curious to see… if this is an ongoing (problem),” said Browaty.

The city expects a $61.3-million surplus for its utilities, which includes Winnipeg Transit, as well as the waterworks system, sewage disposal system, solid waste disposal, land drainage and municipal accommodations. That surplus is actually $5.1 million lower than expected, though utility earnings are largely earmarked to pay for capital projects, such as multibillion-dollar sewage plant upgrades.

“Our big utility, water and waste, it has its own challenges in particular, (including) the massive capital spending we need to do over there ….It is a major financial piece of our whole picture,” said Browaty.

A separate finance report notes the permanent fix for a major pipe failure is expected to cost $31 million, exceeding its original $20-million budget.

The repair was required after a massive pipe failure dumped 228 million litres of raw sewage into the Red River at 3100 Abinojii Mikanah in February 2024.

The increased budget includes $4.5 million for an emergency bypass system that will transport wastewater until the permanent fix is completed around July 2026.

joyanne.pursaga@freepress.mb.ca

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