Town of Gravenhurst report an $817,000 surplus

The funds will be put into reserves for future use

The Town of Gravenhurst reported an $817K operating surplus for 2025 during the May 12, 2026, Council meeting.

Council approved the town's 2025 Operating Year End report, which includes the transfer of the operating surplus into reserve funds.

Under the approved staff recommendation, $217,164 will be transferred to the Tax Stabilization Reserve, while the remaining $600,000 will go into the Community Reinvestment Reserve.

According to the report prepared by Director of Financial Services and Treasurer, Wayne Campbell, the operating surplus was primarily attributed to the sale of a seven-year Principal Protected Note (PPN), described as a strategic, one-time reallocation of investment proceeds intended to support operating pressures and maintain financial flexibility.

The report also noted that the surplus was supported by favourable supplementary and omitted taxes, lower-than-expected tax write-offs, and strong Recreation and Culture revenues.

Town staff emphasized that a significant portion of the surplus was non-recurring in nature and not the result of ongoing operational efficiencies. Because of that, the report recommended a one-time deviation from the town's standard reserve policy.

Under Gravenhurst's reserve policy, operating surpluses are typically transferred entirely into the Community Reinvestment Reserve Fund, while operating deficits are funded through the Tax Stabilization Reserve.

However, the report noted that the Tax Stabilization Reserve had previously been drawn down to address the Town's 2024 operating deficit and currently sits below its target range. Staff therefore recommended directing a portion of the 2025 surplus back into that reserve.

The report stated that the Town's operating budget plays a key role in funding day-to-day municipal services and initiatives while maintaining fiscal responsibility. Municipal financial management practices are guided by the Municipal Act, 2001, which requires municipalities to manage finances prudently and avoid operating deficits.

The year-end financial summary included in the report showed the Town utilized approximately 96 per cent of its 2025 net operating budget.

Mayor, Heidi Lorenz, expressed appreciation for the surplus. She said, “I appreciate that we were proactive. We don’t have to play catch up this year. So, that’s great.”