Gravenhurst reports $440,000 deficit for 2024

The town cited extreme winter storms among the reasons for the deficit

Gravenhurst’s Director of Finance/Treasurer, Wayne Campbell, reported a $440,283 deficit for 2024 in his overview of the Town’s annual performance, in the July 15^th, 2025, Council meeting.

Cambell reported that the sum makes up 2% of the Town’s 2024 Operating Budget, subject to final auditing adjustments, and requested that the deficit be funded from the Tax Stabilization Reserve (TSR).

According to his report, the severe snow event had an impact on the Town’s infrastructure, along with other key factors, such as fleet related costs being higher than anticipated, revenue shortfalls like a decrease in the building permit revenue that was anticipated, event and program cancelations, and inflation.

It adds that the deficit is unusual for the Town. It indicates, “This outcome marks a departure from the Town’s historical trend of generating operating surpluses, which have been used to build reserve funds and support long-term financial sustainability, with a target of achieving annual surpluses of 3%.”

As a result, the Town has applied for the provincial Municipal Disaster Recovery program and staff are waiting for a response, advised Campbell.

In the meantime, Campbell advised Council that the Town has “a healthy enough reserve fund” to draw from.

Councillor, Peter Johnston, expressed concern about using the reserve fund for anticipated events. He said, “The Tax Stabilization fund is for unexpected shocks. That’s what they’re for… Climate related shocks are not going to be shocks any more. Those sort of risks are going to occur more and more.”

He suggested that they consider other areas instead of using the TSR moving forward. He emphasized, “TS funds are not designed for something we know will likely occur.”

Mayor, Heidi Lorenz, expressed appreciation for the work that went into the overview, indicating that the money “went to a good place.” She added, “I’m glad we had it.”

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