The City of Winnipeg has lowered its projected deficit for the year.

A second quarterly financial report puts the projected deficit at $2.7-million, down from $12.1-million.

"It's obviously good news, but... you know, we're only halfway into the year. So we're going to continue to be vigilant and watch the expenses going forward for the remainder of this year," said Mayor Brian Bowman yesterday.

In a release, the city credits favourable pension savings, savings associated with adjustments to provisions in corporate accounts, and savings in street lighting through LED conversion for the reduction. The city says it expects the projected deficit to continue to drop, based on forecasted financial improvements, as well as through continued efforts to control expenses.