Winnipeg police, fire services told to review budgets as city finances groan under weight of pandemic

Tabled reports atthe City of Winnipeg's finance committee are as gloomy as a fall day can get and got cloudier for the chiefs of its two emergency services.

The effect of the health crisis caused by the COVID-19 pandemic has continued to eat into the city's revenues, while expensesin some departments have ballooned and put further pressure on its bottom line.

On Friday, the finance committee passed a motion telling the brass of both the Winnipeg Fire Paramedic and Police Services to go back and look for more savings.

The directivewas met with frustration from Winnipeg Police Service (WPS) Chief Danny Smyth and a more diplomatic response from Winnipeg Fire Paramedic Service (WFPS) Chief Christian Schmidt, but both leaders told the committee any further tinkering with their budgets would end in cuts to service.

WFPS came looking for$3.37 million, primarily to cover unbudgeted overtime costs, and the Winnipeg Police Service asked for$7.288 millionforshortfalls in the pension fund for officers.

• Winnipeg fire and police services ask for help filling gaps in 2020 budget
• Arbitrator rules in favour of police officers in pension tussle with City of Winnipeg
• COVID-19 cuts into Winnipeg police revenues while expenses rise

The author of the request was finance committee member Coun. Sherri Rollins (Fort Rouge-East Fort Garry) who said she wants both departments to have a second look before the city uses its already dwindling fiscal stabilization fund to cover the holes in the two budgets.

"If Iwere to ask for optionsone or two more other than the fiscal stabilization reserve, in a report,what would that look like?" Rollins asked Smyth, who answered swiftly.

"It would mean service cuts, councillor."

The exchange grew more heated as Rollinswon a vote at the committee (chair Scott Gillingham voted against the motion) obligating the WPS to come back in November with some alternatives.

"That's simply unrealistic," Smyth said, his voice rising.

The committee also voted for the WFPS to make a similar review of its budget before the next finance meeting. The fire-paramedicchief echoed Smyth's assertion; the only thing left in the department's budgetto cut wasservice.

Following the meeting,Smyth expressed frustration both because any changes to serviceby the WPSarecontrolled by the Winnipeg Police Board, and not by a committee of city council, and because of thetiming of the request, which comeslate in the year.

The police service was able to find $4.5 million in savings, primarily from cuts toovertime and vacancy management, but the gap left from the pension shortfall was much higher.

"I think there is a lot of politics going here. I mean, you saw that," Smyth said, calling the motion "highly irregular and highly impractical."

Schmidt told reporters it was up to politicians to provide oversight of his department, but cautioned the request "will revolve around service and reduction in service, so that is what we will look at."

Rollins later provided a statement to CBC News defending her motions, saying there was no reduction she'd vote for that would decrease safety, but "my residents sent me to office to have real accountability and not write blank cheques. Right nowI'm looking for options.This is the same process I'd use to scrutinize any city department."

Finance chair Scott Gillingham voted for the fire service to come back with options, but against the motion forcing the police to do the same.

"Even if the police came back and say we have to lay off X number of officers, or do whatever, we as council don't have that authority to direct that service allocation. That is up to the police board," Gillingham explained.

City finances sick with pandemic

The city's chief financial officer, Catherine Kloepfer,ticked off the bad news for the finance committee.

Transit ridership, which is 57 per cent below pre-pandemic levels, has generated a revenue shortfall of $58 million.

Parking revenues continue to lag, coming in at $8.3 million below normal. Recreation programming revenue has dropped $4.8 million and cash from permitfees is down by $3.6 million.

The cumulative effect of COVID-19on the city's budget has grown to $84.3 million and it has put further pressure on its fiscal stabilization fund, which has shrunk considerably(despite help from the federal government) through the pandemic.

City of Winnipeg's finances gloomy for police and fire services

3 years ago

Duration 2:22

The pandemic continues to wreak havoc on the finances of the city of Winnipeg. Revenues from transit, parking fees and other sources are still well below normal and expenses continue to rise. There was a push today by one city councillor to get more savings from the police and fire services, but the chiefs of both department say that would mean cutting services.

The city will dive deep into budget deliberations in November.

Gillingham warned it will bedifficult to meet the requirements to balance the books without some changes to the four-year budget plan.