• Stouffville is projecting a year-end operating surplus of nearly $2.7 million for 2025.
  • The favourable variance allowed Mayor Iain Lovatt to pause the annual capital levy in next year’s budget.
  • Operating results remain strong due to lower staffing costs, higher fines, and strong investment income.
  • Rescheduled and cancelled capital projects returned $3.6 million to reserves.
  • Development-related revenues continue to underperform, driving deficits in Development Services and Engineering and Public Works.
  • Continuing the push to collect on overdue tax accounts, Stouffville recovered nearly $700,000 in arrears in Q3.

 

Third-quarter financial results show Stouffville is on track to end 2025 with a projected operating surplus of nearly $2.7 million, which the Town will transfer to its capital reserves. The favourable outlook helped Mayor Iain Lovatt justify providing residents with a reprieve from the annual capital levy in next year’s draft budget.

The relief was made possible by stronger-than-expected operating results and additional flexibility created by rescheduled and cancelled capital projects.

As of Sept. 30, Staff reported a favourable variance of just under $3.19 million in the tax-supported operating budget. While that figure is expected to narrow by year-end, the Town still anticipates a surplus of approximately $2.69 million on Dec. 31.

Staff attribute the forecast to several trends seen throughout 2025. Salary costs continue to come in under budget due to vacancies and delayed start dates for new hires. Fines, driven largely by the now-cancelled Automated Speed Enforcement program, have also outperformed.

Investment income has been another major factor, with a recent Staff report highlighting favourable market conditions that have allowed the Town to realize and reinvest strong gains throughout the year.

Some revenues, however, continue to lag. User fees tied to development remain well below budget, reflecting the ongoing slowdown in the housing and construction sectors. Development Services is projecting an $853,100 deficit by year-end, and Engineering and Public Works is forecasting a $1.56 million shortfall, both driven in large part by reduced development activity.

Development charges revenue also remains well behind Stouffville’s projection of nearly $20 million. By Sept. 30, the Town had collected just $1.879 million in DCs, generated from 172,000 square feet of non-residential space and only 14 new residential units.

Stouffville has spent approximately $11.6 million of its $78.8 million capital program through the end of Q3. The 2025 capital plan includes $39.2 million in new work and $39.6 million carried forward from previous years. During the 2026 budget process, the Town rescheduled five projects and cancelled 12 others, returning roughly $3.62 million to reserves.

Efforts to collect overdue property taxes have also escalated. In Q3, Stouffville recovered nearly $700,000 in arrears from 2024 and earlier, with collection processes underway for about $6.5 million in outstanding balances. For the current tax year, the Town has collected just over $120.8 million of the $138.6 million billed as of Sept. 30.

While the capital levy is poised for a pause in 2026, pending budget approval by Council, Staff have noted that the Town may need to utilize the levy again in the future.