Capital projects in 2026 to consume wide swath of reserve funds
Posted May 7, 2026
Reserve and Reserve Fund available balances are estimated to decrease by $75.2M from the 2026 opening balance of $76.1 million, to finance capital project commitments.
The greatest draw is $49.5 million from development charges - whose growth has slowed in lock step with the stagnant residential development. Water and wastewater DCs are in deficit. And the negative balances come as the provincial government pledges to limit DC impacts on new construction.
Below is a breakdown of the various reserve categories as laid out in the first quarter financial report to council on Monday night's agenda.
DC Reserves:The forecasted ending balance is expected to decrease by $49.5M. Forecasted collections of $10.4M are offset by project commitments, including multi-year initiatives such as the Alliston Groundwater Wells, Alliston Elevated Water Tank Environmental Assessment and Detailed Design, Parks in New Developments, the Beeton Community Centre Replacement, Fleet Equipment purchases. Debt repayments for a number of debentures, construction loan payments and staff costs also contribute to the decrease.
Land and Property Sale Reserve:
The forecasted ending balance is expected to decrease by $1.3 million, primarily to support the long-term site strategy and parking improvements at the recently acquired Mill Street property in Tottenham, as well as repairs and upgrades at the Banting Homestead.
Capital from Taxation:
The forecasted ending balance is projected to decrease by $1.7 million, reflecting Council-approved projects and commitments, including software and website modernization, school crossings, and various facility and intersection improvements.
Gas Tax:
The forecasted ending balance is expected to decrease by $1.1 million. Anticipated Gas Tax funding of $1.4 million is offset by funding requirements for road upgrade projects and the Roads Condition Assessment project.
Town Asset Replacement reserves:
Forecasted to decrease by $8.1M t support capital projects including Fleet Replacements, Radio Communications, facilities upgrades at the New Tecumseth Recreation Centre, Alliston Memorial Arena, Beeton Memorial Arena, and Roads and Bridges Environmental Assessment's and Designs.
Water and Wastewater Asset Replacement reserves:
Forecasted to decrease by $11.6M, reflecting funding for projects such as the Depot 3 Replacement, Maple Lane Pump Station Rehabilitation, and McKelvey Reservoir Pump Replacement.
Other Reserves:
Forecasted to decrease by $1.9M, largely due to debt funding and other minor capital project requirements.
