The City of St. John’s released its 2025 Executive Summary Report on Revenue and Expenditure at the August 25, 2026 Council Meeting, reporting an operating cash surplus of $6.7 million on an adjusted budget of $378.2 million. The surplus represents 1.8 per cent of the City’s annual operating budget. The report, which is presented using the same cash-based accounting method used to prepare the City’s budget, provides an overview of how revenues and expenditures compared to budget expectations in 2025.

"While inflation and economic pressures continue to affect municipalities across the country, the City of St. John’s continues to manage its finances responsibly," said Deputy Mayor Ron Ellsworth, lead for Finance. "The 2025 results reflect careful financial management while maintaining the services residents rely on every day. The surplus provides the City flexibility to respond to changing needs and unexpected challenges, while also enhancing our ability to plan for the future.”

Several revenue sources exceeded budget expectations in 2025. The largest positive variances included:

• Higher-than-expected activity at the Robin Hood Bay Regional Landfill resulted in tipping fee revenues exceeding budget by $1.79 million. These revenues are dedicated to landfill operations and do not contribute towards the City’s overall bottom line.
• Accommodation tax revenues were $1.2 million higher than budgeted due to stronger-than-anticipated tourism and marketing levy receipts. These funds support the Convention Centre expansion debt and Destination St. John’s operations.
• Construction permit revenues exceeded budget by $479,000, reflecting strong activity in building, renovation, plumbing and electrical permitting.
• Interest on tax arrears exceeded budget by $620,000. This revenue source can vary significantly from year to year, and the favorable variance reflects a conservative budget estimate rather than any collection concerns.
• Rental revenues from City non-profit housing properties were $519,000 higher than budgeted due to lower vacancy rates and annual rent adjustments tied to market rents and tenant incomes.

Some revenue sources were lower than anticipated, including investment interest earnings which were $649,000 below budget due to declining interest rates and parking-related revenues which were $320,000 below budget.

On the expenditure side, overall spending was $3.5 million below budget. Key variances included:

• Transportation Services expenditures were $1.79 million below budget, largely due to lower costs for snow clearing contracts, fleet operations, truck rentals and asphalt repairs.
• Environmental Health Services expenditures were $1.1 million below budget, primarily because water purchase costs were lower than anticipated.
• General Government Services expenditures were $911,000 below budget due to lower spending on technology services, insurance, professional services, training and staffing costs in several areas.
• Parks, Recreation and Cultural Services exceeded budget by $493,000, primarily due to increased fleet, maintenance, utility, security and snow-clearing costs at parks and recreation facilities, as well as an increase in programming at some facilities.
• Protective Services, including the St. John’s Regional Fire Department, exceeded budget by $481,000 due mainly to personnel and equipment repair costs.

“This stronger financial position will provide greater certainty as Council undertakes 2027 budget deliberations this fall, balancing community priorities, service delivery, and affordability considerations,” added Deputy Mayor Ellsworth.

As a result of the 2025 operating surplus, the City’s cumulative cash surplus increased to $20.6 million as of December 31, 2025, representing approximately 5.4 per cent of the City’s adjusted budget.