The Municipality of Chatham-Kent is reporting an operating budget surplus of nearly $225,000 last year.
Administration said the overall 2025 surplus of $224,679 includes a $2.67 million surplus recorded by Health and Human Services last year, largely due to 2024 insurance recoveries related to the 99 McNaughton Avenue fire in Chatham, program savings in various divisions, and rental revenue.
Finance, Budget, Information Technology and Transformation had a $1.19 million surplus because of higher arrears and tax registration revenues, property sales, and staffing vacancies, staff also noted.
They also point out that the large surpluses were largely offset by a $3.38 million deficit in infrastructure and engineering services and a $1.73 million deficit with fire and emergency services.
According to a report going before council on Monday night, the infrastructure and engineering services deficit was primarily related to higher winter control, Wheatley-related expenditures, and grass cutting and tree trimming at parks.
The fire and emergency services deficit was primarily driven by collective agreement settlements and ambulance contract funding shortfalls, the report showed.
The surplus also includes a building permit deficit of $1,284,201 due to a reduction in permit user fees, a police surplus of $4,661, which will go into the police reserve, and a $1,241,421 surplus with insurance risk management, which included claim recoveries.
The municipality also stated that the 2025 financial statements include $1.92 million in provincial funding to offset expenditures associated with the Wheatley explosion emergency in 2021.
"Higher investment income and supplementary tax revenue also contributed favourably to the final result; however, these amounts were partially offset by unexpected year-end contingent liabilities," staff said.
Contingent liabilities are potential liabilities that depend on the outcome of uncertain future events.
According to the municipality, the entire surplus will be transferred into the strategic development reserve.
Meanwhile, the 2027 budget process starts November 25, pending council approval on Monday night. The November 25 meeting includes an orientation session, base budget, and budget processes.
Opening night on January 13 includes an information meeting to review issues facing council and the mayor’s proposed budget recommendations.
The budget presentation and community consultation will occur on January 20 and 21 with a brief presentation followed by a question and answer period.
Budget committee deliberations will be held on February 2 and 3 and February 4 if required.
