Smiths Falls closed 2025 with a $5.2-million surplus and continued investing heavily in roads, buildings and other infrastructure, according to the town’s audited financial statements presented to council Monday, July 27 during a regular committee of the whole meeting.
The independent audit, presented by Baker Tilly, gave the municipality an unqualified opinion, confirming the financial statements fairly represent the town’s financial position in accordance with Canadian public sector accounting standards. The auditor also reported no significant issues, disagreements with management or internal control concerns during the audit.
The town recorded $44.9 million in revenue and $39.7 million in expenses during 2025, resulting in an annual surplus of $5.2 million. Accumulated surplus increased to $117.9 million by year end.
During the year, Smiths Falls invested more than $15.6 million in capital projects, including roads, buildings, vehicles, machinery and water and sewer infrastructure. Long-term debt declined from $14.1 million to $13.2 million as scheduled repayments continued, while cash on hand at year end totalled $12.1 million.
Mayor Shawn Pankow asked whether the town’s current approach to maintaining reserve funds while investing in infrastructure would leave it well positioned for the future.
The auditor said the key is continuing to follow the municipality’s capital asset management plan to avoid postponing maintenance until costly emergency repairs become necessary.
“Ideally, if you can keep that and then trying to keep your reserves at a balance that sees you completing both your operations and still replacing your capital, that would be the ideal situation,” the auditor said.
Pankow noted the town has consistently invested about $20 million annually in capital projects over the past several years and asked whether that level of spending remains appropriate.
The auditor said the answer depends on the condition of the municipality’s existing infrastructure and the priorities identified through its capital asset management plan, adding long-term planning remains the best way to manage future costs.
Council received the audited financial statements for information, providing a year-end snapshot of the municipality’s financial position and investment in infrastructure during 2025.
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That’s great news , now spend some of that surplus on repairing the Chambers Street Subway 👍