Winnipeg posts $83M deficit for 2022, a modern record for the provincial capital

The City of Winnipeg posted an $83-million deficit for 2022, thelargest pool of red ink in the Manitoba's capital's modern history.

"We can confirm it is the largest shortfall in over 20 years and most likely ever," city spokesperson Kalen Qually said in a statement.

Low revenues related to the pandemic and record snow-clearing costs forced the city to spend almost seven per cent more than its nearly $1.2-billion budget for last year, according to year-end financial reportpublished on Tuesday.

Reduced Winnipeg Transit revenues made up most of a $54-million revenue shortfall in 2022. City spending on snow and ice removal went nearly $53 million over budget, thanks to unusually wet weather early in 2022.

The city also spent $11 million more in fuel than it expected, thanks to higher prices. It alsooverspent on the fire-paramedic serviceby $8 million, mainlybecause of pandemic-related emergency-response costs.

The city also spent $7million more on policing than it expected, partly because of reduced photo-radar revenue.

The city absorbed some of the combined financial blow with financial assistance from other governments mainly to cover transit revenue shortfallsand by saving money in other departments.

The city underspent its community services budget by almost $7 million, mainly because it couldn't find enough people to fill vacant positionsat pools and libraries.

Winnipeg is nonetheless forced to drain most of its rainy-day fund, formally known as the fiscal stabilization reserve, to cover the $83-million budget shortfall for last year.

Only $5 million now sits in that fund, which must now be topped up. The city is required to set aside at least six per cent of its annual operating budget, which works out to about$72 million,to cover off financial disasters.

Council finance chair Jeff Browaty (North Kildonan) said last week the city will present a plan to replenish the stabilization reserve on Wednesday, when he presents the city budget for 2023.

Winnipeg Transit also posted a separate $5-million operating deficit for 2022, which will be repaid using retained earnings.

The financial report for 2022 will come before council's finance and economic development committee on Feb. 13.