St. Thomas is expected to report an operating budget deficit of approximately $1 million for 2025.
That’s according to a report from Adam Boylan, city treasurer, to members of city council for Tuesday’s (April 7) meeting.
This is an improvement from the $1.2 million deficit forecasted in the Third Quarter 2025 Budget Monitoring Report.
Boylan cautions, “This represents the second consecutive year in which the city has incurred an operating deficit. While the magnitude of the deficit is modest relative to the overall tax levy, at approximately 1.3%, it places continued pressure on already constrained financial resources.”
He continues, “The impact of the operating deficit is amplified when considered against the city’s current reserve position, particularly within the tax-supported reserves.
“The infrastructure reserve is being drawn upon to fund the deficit, while also being relied on to support ongoing capital requirements and unforeseen contingencies, yet it is not sufficiently funded to effectively support these pressures.”
The largest operating deficit last year of almost $1.3 million is related to the St. Thomas Police Service.
Boylan points out, “This position reflects a $1.76 million shortfall in grant revenues, partially offset by an operating surplus of approximately $480,000. This issue was discussed and accounted for through the 2026 Budget. The St. Thomas Police Service will be presenting its year-end financial results directly to council.”
The St. Thomas Fire Department had a deficit of $638,000, driven by overtime pressures.
Written by Ian McCallum
