As snow removal and COVID-19 continue to weigh on the budget, Winnipeg’s financial outlook is deteriorating
#snow #removal #COVID19 #continue #weigh #budget #Winnipegs #financial #outlook #deteriorating Welcome to Alaska Green Light Blog, here is the new story we have for you today:
According to Winnipeg’s latest financial status report, the forecast for the budget deficit is worse.
The latest update is based on forecasts up to November 30th. Cost estimates as of September 30th were provided in the previous update.
The projected operating budget deficit rose 22.5 percent to $69.6 million from $56.8 million in the city’s most recent financial report, released in November.
The costs associated with snow removal appear to be the main cause of the increased deficit estimate. From $40.9 million in the last update, snow removal and ice control is now expected to cost $52.6 million more than the city had budgeted for 2022.
Fuel costs are expected to increase from $10.7 million to $11 million.
The overspending request for December operations, included in the projected snow removal deficit, could turn out to be larger after the final count in February.
City budgeted $41.3 million for COVID-19 costs in 2022; However, the actual cost is expected to be $12 million more than that amount. This prediction was made in the previous financial update.
The projected loss for Winnipeg Transit has dropped from $17.4 million to $13.7 million.
At the end of November, public transport usage was still around 32% below average. To fill the growing gap, the city needs to draw more money from its rain reserve. By the end of 2022 it will be just $10.8 million, $60.9 million below the minimum required by the council once the money to cover the shortfall is removed.
The city, in its most recent estimate, had expected $14.5 million to remain. The federal government is expected to send $19.4 million to communities facing transit losses as part of a $700 million assistance plan, but that’s not included in the forecast.
The financial outlook for the city will improve slightly as a result, but Coun. Jeff Browaty, chairman of the finance committee, said in a press release that the financial stabilization fund will still be significantly depleted.
Summary of the news:
As snow removal and COVID-19 continue to weigh on the budget, Winnipeg’s financial outlook is deteriorating. Check all the news and articles from the latest business news updates.