St. John’s reports $6.7M operating surplus for 2025

The City of St. John’s reported a $6.7-million operating cash surplus for 2025, representing about 1.8 per cent of its adjusted $378.2-million operating budget.

The results were outlined in the City’s 2025 Executive Summary Report on Revenue and Expenditure, presented at Monday’s council meeting.

The report used the same cash-based accounting method as the City’s annual budget and compared actual revenues and expenditures with budget projections.

Deputy Mayor Ron Ellsworth, the council lead for finance, said the results reflected careful financial management despite ongoing inflation and economic pressures.

“The surplus provides the City flexibility to respond to changing needs and unexpected challenges, while also enhancing our ability to plan for the future,” Ellsworth said.

Several revenue sources came in higher than budgeted.

Tipping fee revenues at the Robin Hood Bay Regional Landfill were $1.79 million above budget because of higher-than-expected activity. The City said those revenues were dedicated to landfill operations and did not contribute to its overall bottom line.

Accommodation tax revenues were $1.2 million above budget, driven by stronger-than-anticipated tourism and marketing levy receipts. The funds support debt related to the Convention Centre expansion and Destination St. John’s operations.

Construction permit revenues were $479,000 higher than projected, reflecting increased activity in building, renovation, plumbing and electrical permits.

Interest collected on tax arrears was $620,000 above budget, while rental revenues from the City’s non-profit housing properties exceeded projections by $519,000 because of lower vacancy rates and annual rent adjustments.

Not all revenue sources performed as expected. Investment interest earnings were $649,000 below budget because of declining interest rates, while parking-related revenues were $320,000 below projections.

Overall spending was $3.5 million below budget.

Transportation Services accounted for the largest expenditure variance, coming in $1.79 million below budget because of lower costs for snow-clearing contracts, fleet operations, truck rentals and asphalt repairs.

Environmental Health Services spending was $1.1 million below budget, primarily because water purchase costs were lower than expected.

General Government Services expenditures were $911,000 below budget, with savings in technology services, insurance, professional services, training and staffing.

Some departments exceeded their budgets.

Parks, Recreation and Cultural Services spending was $493,000 above budget, largely because of higher fleet, maintenance, utility, security and snow-clearing costs at parks and recreation facilities, as well as increased programming at some facilities.

Protective Services, including the St. John’s Regional Fire Department, was $481,000 over budget, mainly because of personnel and equipment repair costs.

Ellsworth said the stronger financial position would provide council with more certainty as it begins 2027 budget deliberations this fall.

The 2025 surplus increased the City’s cumulative cash surplus to $20.6 million as of Dec. 31, 2025. That represented approximately 5.4 per cent of the City’s adjusted operating budget.

The report said the surplus would provide the City with additional flexibility as it balances community priorities, service delivery and affordability considerations during future budget planning.