$58.8M budget surplus for London in 2024

CTV News

24-04-2025

London has a windfall of unspent money in the 2024 municipal operating budget even as the Council stares down another significant tax increase next year.
According to a report summarizing the 2024 Property Tax Supported Budget, city hall posted a staggering $58.8-million surplus, representing 4.4 per cent of the gross budget.
The 2023 operating budget surplus was $28 million.
City staff recommend retaining $16.6 million in the Operating Budget Contingency Reserve, 'to fund statutory Development Charges exemptions in excess of budget.'
It's recommended that the remaining $42.2 million (3.1 per cent of gross budget) be divided up according to the surplus/deficit policy:
60% contribution to the Debt Substitution Reserve Fund ($25.3 million)
3% contribution to the Community Investment Reserve Fund ($1.3 million)
17% contribution to the Unfunded Liability Reserve Fund ($7.2 million)
20% contribution to the Capital Infrastructure Gap Reserve Fund ($8.4 million)
However, it will ultimately be up to city council to determine how the surplus is reallocated.
A long list of programs and departments contributed to the surplus.
The largest contributor ($28.8 million from Financial Management) is described as a 'surplus in provision for tax appeals & uncollectible taxes ($10.8 million) due to delay in property reassessments resulting in lower appeals and assessment at risk, investment income surplus ($10.5 million) from higher interest rates than budgeted, personnel & contingency savings ($5.7 million), and other miscellaneous factors ($1.8 million).'
Other significant contributors
Community and Social Support personnel savings ($1.8 million)
Ontario Works net surplus ($4.2 million) due to higher than budgeted provincial funding and transition to London Regional Employment Services,
Child Care net surplus ($2.9 million) primarily due to 2023 revenue adjustments
Personnel savings ($3.0 million)
Utility savings ($1.0 million) due to lower fuel prices
Provincial Offences Act ($2.9 million) surplus primarily due to implementation of new accounting standard
Higher than budgeted user fees primarily in W12A landfill ($3.3 million)
The report goes on to warn, 'It is important to highlight that many of the factors driving the 2024 surplus position will not recur in 2025 or may not persist in future years.'
The report also warns of significant financial impacts if the trade war with the United States impacts economic growth and the price of goods.
'Direct impacts would be in the form of increased costs of goods or services purchased by the city that are subject to tariffs. Indirect impacts, on the other hand, could be even more significant and result from changes in economic conditions,' the report reads.
The Infrastructure and Corporate Services Committee will consider the report on the 2024 budget surplus on April 30.