The City of Winnipeg’s most recent financial and forecast report projects another bad year under COVID-19.
The report, which looks at the city’s finances through Aug. 31, projects a $ 16.6 million shortfall in the tax-backed operating budget and an additional $ 10.6 million shortfall for Winnipeg Transit.
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In total, the report estimates that COVID-19 will have an impact of $ 84.3 million on the city’s finances this year, $ 23.1 million more than had been anticipated for 2021.
“Despite budgeting for the significant financial impacts due to COVID-19 this year, the City will need to tap into the Financial Stabilization Reserve Fund to end 2021 in a balanced position,” said the St. James Councilor and Chairman of the Committee on city finance, Scott Gillingham. on a Friday release.
“The City remains focused on prudent fiscal management with the goal of achieving financial recovery.
“There will be more challenges on the horizon as financial pressures on the city caused by the pandemic will continue into the next year, resulting in difficult decisions needed in the 2022 budget process.”
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An annual financial report released in June showed that the city posted a deficit of $ 52.4 million in 2020, compared to $ 20.6 million the previous year.
The city’s statement says its economic outlook for fall 2021 uses new economic data to further analyze the impacts of COVID-19 on business, employment, housing and other areas.
The latest outlook also includes updated forecast scenarios that propose plausible outcomes for the pandemic through 2022, the statement added.
“Winnipeg has seen a positive economic recovery from the pandemic throughout 2021, but that recovery has been uneven across industries due to changes in human behavior and public health measures,” said city economist Tyler. Markowsky in the statement.
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“Given that COVID-19 is a global pandemic that, according to leading epidemiological research, will only be brought under control once the global population is heavily vaccinated, it is reasonable to assume, based on current information, that we will be dealing with this. pandemic for the foreseeable future. future.”
The latest financial status and forecast report will be presented to the city’s finance committee on October 15.
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