Chatham-Kent (CK) Council will decide next week what to do with a projected $3.5 million budget surplus this year.
An Administration report going before Council on Monday night is recommending that $2.2 million of the 2025 projected surplus be transferred to a reserve to be used for future affordable housing projects, pending final approval of the 2025 operations variance.
The other recommendation is to transfer $800,000 of the forecasted surplus to the Tax Rate Stabilization Reserve to offset unforeseen fluctuations in operating expenditures or revenues that may arise during the fiscal year subject to completion of the year-end audit.
The rest ($500,000) would be transferred to police reserves.
Administration reported the surplus was driven mainly by staffing vacancies.
The projected surplus represents approximately 0.79 per cent of the municipality’s gross operating budget, staff said.
Administration noted that the latest variance includes several assumptions due to ongoing inflationary pressures, the continued uncertainty surrounding the Wheatley emergency, and the financial impacts of the 99 McNaughton Avenue fire.
"As with any forecast, the accuracy of variance projections improves as more actual data becomes available. These projections rely heavily on estimates, historical trends, and professional judgment to assess the difference between budgeted and actual results," the staff report said.
Council is being warned that significant changes in projections may still occur if unexpected developments arise in the local economy, including fluctuations in social assistance caseloads, fuel and energy costs, or seasonal demands such as grass cutting and winter control.
Administration noted that the budget surplus would have been larger if not for the expenses incurred responding to the Wheatley emergency.
Some changes to reserves are also being proposed to manage operational surpluses and future deficits and to address unforeseen operational needs and support future capital purchases within the Waste Management Program.
The changes would mean some existing reserves would close and the funds would be transferred to new reserves addressing different files.
The 2026 annual budget update will be presented to Council on November 5.
Two community consultation events will be held virtually on Chatham-Kent’s Facebook Live feed (www.facebook.com/MunicCK) on November 19 from 12-1 p.m. and November 20 from 7-8 p.m.
Council will begin budget deliberations on November 25, and if required, they will resume on November 26 and November 27. All three sessions are from 6-10 p.m.
If more time is required, December 2 and December 3 have also been set aside.
Anyone wishing to make a budget deputation to Council can on November 5 or on November 25. Requests and submissions must be sent by email to ckfps@chatham-kent.ca before noon on these dates respectively.
General comments regarding the budget can be submitted any time by email to ckfps@chatham-kent.ca, by mail to Budget & Performance Services, Municipality of Chatham-Kent, 315 King St. West, Chatham, Ontario N7M 5K8, or by phone to 519-360-1998.
