Burlington projects a $1.9-million surplus for 2026, but its rainy-day reserves sit at half their target

The projection

Burlington's finance department told Council in September that, based on results to June 30, the City expects to finish 2026 with an operating surplus of $1,896,563, about $1.90 million or 0.6 per cent of the gross operating budget. Committee of the Whole considered the report, FIN-25-26, on September 14, and Council received it on September 29, directing the Chief Financial Officer to report back on actual 2026 year-end results. Staff say that year-end report will come in the new year and will include a recommendation on what to do with any retained savings.

What is helping and what is hurting

According to the report, the largest favourable item is about $3.13 million in staffing savings, mainly from vacancies and the timing of recruitment. Other gains include $733,000 in higher tenant lease recoveries at Bateman Community Centre, $550,000 in extra interest and penalties on tax arrears, $450,000 in additional investment income and about $463,000 from ice rentals and admissions combined.

• Winter: about $789,000 more in contracted services, driven by winter contractors as well as janitorial costs at Bateman Community Centre and added security, and $355,000 more in roads, parks and forestry stores, mainly road salt after what the report calls severe winter conditions early in 2026.
• Development fees: planning fee revenue is projected $2.29 million below budget, fully offset by a draw from the Planning Fee Stabilization Reserve Fund; building permit revenue is projected $1.21 million short, with a $493,000 reserve draw leaving a net pressure of about $713,000.
• Fleet and buildings: $319,000 for equipment parts on an aging fleet and $304,000 for repairs to aging facilities.
• Other: $300,000 less in supplementary tax revenue, $216,000 more for diesel and $100,000 more in credit card service charges.

By department, Roads, Parks and Forestry shows the largest projected overrun, at about $552,000.

Reserves below target

A companion report, the financial status report FIN-18-26, sets out the City's cushions. Burlington's policy targets uncommitted stabilization reserves, the funds used for one-time costs, revenue shortfalls and to smooth the tax levy, at 10 to 15 per cent of own-source revenue. Based on 2025 own-source revenue of $378 million, that is $37.8 million to $56.7 million. At June 30, 2026, the uncommitted balance was $20,047,431, or 5.3 per cent.

In a supplemental memo to Council on September 29, staff attributed the decline to drawing on the Planning Fee Stabilization Reserve Fund while the housing market changed, a lower cash balance in the Contingency Reserve because of legal obligations, and faster growth in revenues. Across all reserves and reserve funds, the City held $286.6 million at June 30, up $69.2 million from a year earlier, which staff attribute to funding capital projects as money is spent rather than in advance. Of that, $163.5 million is committed, leaving $123.1 million uncommitted. Staff say a Long-Range Financial Plan with updated financial targets will come to Council in the second quarter of 2027.

Taxes and debt

The 2026 tax levy the City collects for itself, Halton Region and the school boards is $581.8 million, up from $558.2 million in 2025. By June 30, 66.6 per cent had been collected, compared with 66.8 per cent a year earlier and 69.0 per cent in 2021. The City sent 674 residential collection letters in May 2026, 21 per cent more than the 557 sent in May 2025, and says owners must pay at least the oldest outstanding year of taxes by October 31, 2026. Bailiff warrants were issued for nine commercial or industrial accounts with two years of arrears, and tax arrears certificates were registered against seven properties in March.

Debt charges were estimated at 8.39 per cent of own-source revenue, below Council's 12.5 per cent guideline and the provincial limit of 25 per cent. Including $41.6 million of approved debt not yet issued, total principal outstanding was projected at $151.5 million at June 30.