City of Winnipeg releases plan to help deal with budget shortfall

The plan to plug hole in Winnipeg's bottom line The city's rainy day fund is set to run out to help cover off a projected deficit. CTV's Jeff Keele reports on the new plan to fix it.

The City of Winnipeg is releasing a plan to shore up an anticipated budget shortfall.

Last month, a report projected a $27 million deficit by the end of the year because of cost pressures with emergency services and snow removal.

To help pay it off, $19.5 million is being used from the rainy day fund, leaving that reserve dry.

Now a new report to the finance committee outlines a way to cover off the remaining $7.5 million.

“All discretionary expenditures are under additional scrutiny to meet budget targets,” says the report.

The report says this would leave $200,000 in the rainy day fund, which is supposed to have a minimum balance of $78 million.

The reserve fund was depleted as the city dealt with pandemic costs.

The report also says if these savings are not enough because of heavy snow and ice this winter, a report set for the July meeting of the Mayor’s executive policy committee will provide another $8 million that could be available in retained earnings related to a sewage disposal fund.