Written By Olena Riznyk
LUCAN BIDDULPH – Financial planning took centre stage at the May 6 council meeting, as Treasurer Kathryn Langendyk presented a series of updates concerning the 2024 year-end surplus, reserve strategy, and future borrowing capacity.
Langendyk reported a projected 2024 general surplus of approximately $378,000, crediting the positive balance to a combination of higher-than-expected revenues and underspending in certain areas. Among the key contributing factors were an unexpected $200,000 in bank interest, $36,000 in provincial offences revenue, and $40,000 in additional penalties and interest. Additionally, some planned road expenditures were not carried out, resulting in a further $86,000 in savings.
Council voted to allocate the full surplus to the Tax Rate Stabilization Reserve, a fund designed to buffer against sudden financial pressures and help maintain stable municipal tax rates. “We haven’t contributed to this reserve in recent years,” Langendyk noted, “but after our strategic land purchase in 2024, it’s time to rebuild. This will give council flexibility in the years ahead.”
The treasurer also recommended creating a new reserve specifically for building permit revenue shortfalls. The proposed “Building Permits Reserve” would receive an initial transfer of just under $69,000—the difference between 2024 permit revenues and the costs of operating the building department.
“Building departments are required to be self-funded,” Langendyk explained. “However, in years when permit activity drops, the fixed costs—like staff and software—remain. This reserve would help offset any future imbalances.”
Council also reviewed its Annual Repayment Limit (ARL), which defines how much debt the township can legally undertake. Langendyk presented an adjusted report that included existing debt from recent projects—such as the new community centre and pool—as well as anticipated borrowing for the upcoming soccer complex. After adjustments, Lucan Biddulph retains the ability to borrow an additional $22 million and remain within its provincial limit.
“While it’s good to know our capacity, it’s not advisable to fully extend ourselves,” Langendyk cautioned. “These reports help provide a clear picture if future borrowing is considered.”
Interest rates on long-term loans are currently in the range of 4.3% to 4.7%, she added, with all municipal borrowing locked in at fixed rates to avoid future volatility.
The financial updates were received with appreciation by council, which praised staff for their careful stewardship and proactive planning.
