City's 2011 financial statements demonstrate strong financial performance

Released: June 1, 2012 at 2:40 p.m.
The City of Winnipeg's financial statements demonstrate strong financial performance. However, with the continuing growth of the infrastructure deficit, there is cause for concern in the absence of a better funding arrangement with our provincial partners.

Infrastructure deficit growing larger

WINNIPEG - June 1, 2012 - The City of Winnipeg's financial statements demonstrate strong financial performance. However, with the continuing growth of the infrastructure deficit, there is cause for concern in the absence of a better funding arrangement with our provincial partners.

Council-approved investments in City's capital assets totaled $486 million for 2011. The largest of these investments was the Chief Peguis Trail Extension project, which came in on-budget, and opened one full year ahead of schedule.

�Investments like the Chief Peguis Trail Extension show what we can do when we take part in innovative funding models like Public Private Partnerships,� said Mayor Sam Katz. �By using this model, we delivered the project to Winnipeggers ahead of schedule and on budget, in keeping with our citizens' priorities.�

The City's credit ratings were recently affirmed, with Standard and Poor's rating maintained at AA, and Moody's Investors Services rating maintained at Aa1. The ratings reflect the healthy budget performance displayed by the City.

�I am very pleased that our credit raters have shown continued confidence in our current and future approach to investment. Through vision and careful management, our financial house is in order,� said Councillor Scott Fielding, Chair of Finance.

At the same, the credit ratings also consider the implications of a capital spending plan that will result in increasing debt for the City in the near future. The City faces an infrastructure deficit in its aging roads, transit, facilities, buildings and parks. In addition, the Province's increased pollution standards, and the resulting mandate to improve wastewater systems, has resulted in an accelerated capital program for sewage disposal systems.

To deal with its infrastructure deficit, the City requires $7.4 billion (in 2009 dollars) over the next 10 years. In comparison to other Canadian municipalities, the City of Winnipeg receives among the lowest in capital funding per capita from a provincial government.

In 2011, long-term debt grew by $62 million, as a result of investments made in the Chief Peguis Trail Extension and the Southwest Transit Corridor. The City is prudently using debt to address capital investment needs. Projected, future growth in debt is manageable and within the borrowing limits set in the Debt Strategy and Financial Management Plan. The City has used these Council-approved plans as guideposts to carefully position our city well for future priority investments.

The City's property taxes are among the lowest in the country. Our operating costs are now the lowest per capita of any comparable Canadian city and, as a result, the 2012 Operating Budget included increases in major services and operations involving public safety, infrastructure renewal and community centre investments.

�Council has done all it can to keep the lid on operating and capital costs, to provide better, more efficient services that our citizens expect and need,� said Councillor Fielding. �Without a better funding model, our city's infrastructure deficit will continue to grow and compound itself.�

News

Was this information helpful?

How can we make this web page better?

Information collected will be used to improve our website. Do not use this form to submit a request for service or information because it will not be forwarded to departments for response. To submit a request for service or information, contact 311.

This form is not intended to collect personal information; however, any personal information you choose to include in your comments is collected by the City of Winnipeg under the authority of section 36(1)(b) of the Freedom of Information and Protection of Privacy Act for the purpose of improving our website and will not be used or disclosed for any other purposes, except as authorized by law. Contact the Corporate Access and Privacy Officer by mail (City Clerk’s Department, Susan A. Thompson Building, 510 Main Street, Winnipeg MB, R3B 1B9) or by telephone (311) if you have any questions about the collection of this information.