A massive drop in public transit ridership is a driving force in a projected multi-million dollar city revenue deficit.
The Chair of the Standing Policy Committee on Finance Councillor Scott Gillingham says Winnipeg continues to the pandemic's significant effects on revenue.
Initially, the city planned for a financial impact of $61 million in its General Revenue Fund related to the pandemic but with the added deficits, that total has grown to $84.8 million.
"The current forecast projects the need for another draw on the Financial Stabilization Reserve Fund by year-end. It is very important to maintain prudent fiscal management throughout 2021 as the unknowns related to the Delta variant will make it challenging for the City to see the financial recovery typical in the latter half of most years," Gillingham says in a release.
He is anticipating a $14.3 million deficit in the city's second-quarter operating budget.
Transit ridership has dropped by 57 per cent in the City of Winnipeg's second fiscal quarter. The City of Winnipeg says because of this, they are anticipating a $12.4 million shortfall in transit revenue since June 30, adding to the projected deficit.
A Standing Policy Committee on Finance meeting will take place Friday discussing the second quarter. It is being recommended to the standing comity to transfer the difference out of the Financial Stabilization Reserve Fund into the General Revenue Fund.