New Tecumseth projects modest operating surplus but faces $1.5M capital shortfall
Posted September 1, 2026
New Tecumseth is forecasting a modest operating surplus for 2026, but higher-than-budgeted capital costs are expected to put additional pressure on municipal reserves, according to a second-quarter financial report.
The town’s general operating budget is projected to finish the year $26,797 in the black as of June 30. The result reflects $72,000 in favourable revenue variances, partly offset by $45,200 in higher-than-budgeted expenses.
Among the largest positive factors are $241,100 in projected savings on the Ontario Provincial Police contract, resulting from provincial cost-capping measures. User fees and service charges are also expected to exceed budget by about $149,700, including higher facility rentals, fire-service fees and other service revenues.
Those gains are being offset by higher facility costs, including property taxes, insurance and water and sewer charges, as well as increased spending on training, professional services and grants.
The water and wastewater operations are forecasting a substantially larger $337,105 surplus. Additional revenue is expected to account for $350,000 of the favourable variance, driven primarily by $120,000 in additional bulk-water sales and $200,000 in septage receiving fees. Expenses are forecast to exceed budget by $12,895. Any year-end surplus will be transferred to water and wastewater asset-replacement reserves.
The more significant concern is capital spending. The town is forecasting an unfavourable $1.495-million variance, entirely within engineering. The additional requirement is tied to upgrades to the Industrial Parkway sanitary pump station, for which council approved $1.5 million in additional funding in March.
The town’s 148-project capital program is valued at $189.7 million. The additional capital requirement will increase pressure on reserves, although it will not directly affect the property-tax levy.
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