Town of Huntsville facing $181,000 deficit in 3rd quarter 2025

Capital spending is over budget by $1.9 million

Huntsville Council received an update that the Town is facing $181,000 in Operational deficit to date for 2025, in the December 10, 2025, meeting.

Staff summarized the Town’s third-quarter financial update, highlighting ongoing progress across municipal departments while acknowledging several budget pressures affecting 2025 year-end projections.

The report outlines continued efforts to maintain service quality, strengthen financial management, and support community-focused initiatives despite rising costs and resource constraints.

It adds that Financial Services saw strong gains from investment transitions following the outsourcing of portfolio management, reinforcing long-term fiscal sustainability. However, staff anticipate lower interest income due to declining market rates and are adjusting strategies.

They explained that interest rates are decreasing which they will continue to monitor, however, property tax receivables and interest penalties are up.

Capital, 2025 spending is projected to exceed the budget by $1.9 million, primarily due to carryover projects from 2024 and work rescheduled into 2026. Some adjustments resulted in a net decrease of approximately $260,000 across project lines, continues the report.

Staff indicated that they will continue to monitor pressures and identify savings opportunities that may reduce the deficit before year-end.

They will also report back in the New Year about a possible revenue decrease from the Lake of Bays Fire Service Agreement may affect 2026.

They included a consolidated department summary in the report which they indicated “impacts the deficit,” and added that there are “areas with surpluses too.”

According to the 3^rd quarter forecast in the report, some of the departments with deficits include, Council and Administration, at $204,585, Roads, Sidewalks, and Transit, at $292,395, and Home Property and Planning, at $145,324.

Staff said the Town has $26 million in reserves “and expect to end around 23 million.”

Deputy Mayor, Dan Armour, inquired about whether a potential deficit from the Huntsville Lake of Bays Fire Department would carry over to 2026.

Staff said they “will communicate with Lake of Bays regarding outstanding amounts after the year end consolidation is completed,” and report back about the impact of the department.