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New Tecumseth Council receives year-end budget variance report

June 5, 2025   ·   0 Comments

By Brian Lockhart

New Tecumseth Council recently received the 2025 year-end budget variance report as of March 31.

The report provides the 2025 forecasted year-end operating financial results and capital projections as of March 31.

The Town’s operating results for 2025 capital projects included a forecasted Town surplus of $32,000 and a water and wastewater balanced budget.

Overall capital projects are forecasting an unfavourable variance of $2.1 million.

Pursuant to financial management best practices and budgetary control, quarterly and year-end operating variance reports are submitted to Council to provide projected operating results to year-end. In addition, the reports provide status updates on budgeted capital projects throughout the year, including additional details for projects considered to be high profile per the Town’s Capital Project Administration and Reporting Policy.

The Operating budget provides for expenses that cover day-to-day expenditures and activities including utilities, insurance, staff wages and benefits, program supplies, and facility/equipment repairs and maintenance. It includes revenues expected to be received from fees and various other user-paid activities like program registrations, ice rentals etc. that are applied to reduce the amount needed to be raised through property taxation.

Staff are reporting a year-end surplus of $32,000, made up of a favourable revenue variance of $219,000 and an unfavourable expenditure variance of $187,000. These results are very preliminary and are likely to change as the year progresses.

Water and Wastewater (WWW) are reporting a balanced budget at year-end. As these services are self-funded, i.e. fully funded by water and wastewater rates, any year-end surplus will be transferred to the Water and Wastewater Asset Replacement Reserves. Water and Wastewater revenues and expenditures are forecasted to remain consistent with the budgeted amounts. Any forecasted variances that occur in the year will be reported in subsequent quarterly reports.

The Capital budget addresses the requirements of growth and identifies the life-cycle repair, maintenance, and replacement of existing infrastructure, including community centres, fire stations, parks, arenas, roads, sidewalks, etc.

Overall, staff are forecasting additional funding requirements of $2.1 million over and above the 2025 Budget funding requirements.

Projects requiring additional funding are: Mill Street Reservoir required $1.9 million additional funding which Council approved, and an additional project for an Aquatic Centre Feasibility Study was approved with funding of $220,000 on March 24, 2025.

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