City of Winnipeg implementing hiring, wage freeze to deal with budget shortfall

WINNIPEG — The city is taking big steps to help address its projected $9.5 million shortfall in the 2017 budget.

On Thursday the city announced it’s implementing a hiring freeze in most departments and will not give raises for senior management and non-union staff. Restrictions are also in place on discretionary spending, such as avoiding the use of external consultants and needing approval on all conference travel.

The city will review its 2017 projects to see if any can be postponed or reprioritized.

RELATED: Winnipeg proposes 2.33% tax increase in 2017 preliminary budget

“We ended 2016 with a deficit and were projecting a surplus for 2017,” Councillor Scott Gillingham, chair of the standing policy committee on finance said. “That didn’t happen so immediately had to make up 9.5 million for the 2017 budget.”

The snowfall amounts in December put the city behind, Gillingham said.

“The snow wiped out our projected surplus, so now we have to make difficult decisions.”

Tweet This Click to share quote on Twitter: "The snow wiped out our projected surplus, so now we have to make difficult decisions."

READ MORE: ‘Snowiest city in Canada’: Winnipeg’s record breaking December

According to Environment Canada, December 2016 was the second snowiest month in Winnipeg’s history.

Gillingham did not say which capital projects will b e scaled back or cancelled, but did specify it would not be any road projects.

The city does not anticipate laying any staff off.