Town posts $1-million surplus, capital projects come in under budget

 

Posted March 23, 2026

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New Tecumseth finished 2025 with a $1,021,351 operating surplus, while capital projects came in $1.5 million under budget, according to the financial update on tonight's council agenda.

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The surplus will be split according to Town policy, with 25 per cent going to the tax rate stabilization reserve and 75 per cent to the asset replacement reserve.

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Staff said the operating surplus was driven by higher-than-expected revenues of $1.3 million, partially offset by expenses $281,087 over budget.

 

Day-to-day costs include staff wages, utilities, program supplies, and maintenance, with some costs offset by user fees, such as recreation program registrations and ice rentals. More than $1 million was saved by lags in hiring.

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Water and wastewater operations posted a $3.2-million surplus, which will be added to reserves for future capital projects. Staff noted the transfer was lower than expected when utility rates were set, which could create funding pressures in future years.

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The Town’s 2025 capital program included 152 projects valued at $141 million, covering roads, sidewalks, parks, fire stations, arenas, and community centres. Savings reduce the draw on reserves rather than property taxes.

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Earlier in the year, staff had flagged additional funding needs of $208,000, but final projections show a $1.7-million improvement from third-quarter estimates.

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Story aided with AI.