The Town of Smiths Falls posted a $5.2-million surplus in 2025, but new financial statements show the municipality’s net debt more than doubled as it invested heavily in infrastructure and capital projects.
Council received the town’s audited 2025 financial statements on July 27.
The town recorded revenues of $44.9 million and expenses of $39.7 million, resulting in a surplus of $5.2 million. Property tax revenue increased to $22.1 million, while user fees generated $8.3 million.
Despite the surplus, the town’s net debt climbed from $4.5 million in 2024 to just over $10 million in 2025. The increase was largely driven by a significant capital spending program that saw the municipality invest $15.6 million in infrastructure and other assets during the year.
The financial statements show tangible capital assets increased from $115.3 million to $126.2 million, while assets under construction reached nearly $17 million by year-end.
Cash reserves also declined, falling from $14.9 million to $12.1 million as capital projects moved forward.
Long-term debt decreased slightly from $14.1 million to $13.2 million, with the town making approximately $900,000 in principal repayments during 2025. Interest costs totaled nearly $600,000 for the year.
The statements also highlight an increase in the municipality’s unfunded capital position, which rose from approximately $4.3 million to nearly $10 million.
Several municipal service areas continued to operate at deficits that are subsidized through taxation, including protection services, recreation and culture, and social services.
Despite those challenges, Smiths Falls maintained reserve balances of more than $15 million and reported no outstanding balance on its $3-million operating line of credit at the end of 2025.
The town’s accumulated surplus stood at $117.9 million as of Dec. 31, 2025
