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

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

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

The city's first-quarter financial status report and forecastprojects an operating budget deficitof $25.8 millionby the end of March.

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

"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 projectsit will save $13 million from cost-saving measures it's already implemented, includingfreezing 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, andWinnipeg Transit service cuts and temporary layoffs.

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