Lanark County’s 2025 audited financial statements show the municipality quietly took on $3.75 million in new debt tied to the Better Homes Lanark program, while also setting aside more than $7.4 million in reserves for the initiative.
Better Homes Lanark is a county-run financing program designed to help homeowners pay for energy-efficiency upgrades such as insulation, heat pumps, windows and solar installations. Rather than paying upfront, homeowners receive financing and repay the cost over time, typically through mechanisms tied to their property.
The county’s newly released financial statements show the program became a much larger financial factor in 2025.
Long-term liabilities jumped from $343,452 in 2024 to $3.83 million in 2025, with nearly all of that increase tied to a new financing agreement listed as “FCM Better Homes Lanark Funding.” The loan carries an interest rate of 2.5 per cent and has a maximum value of $5 million.
At the same time, the county established a new reserve specifically for Better Homes Lanark worth $7.41 million, compared with no dedicated reserve the year before.
Lanark County had $64.84 million in total reserves and reserve funds at the end of 2025, up from $61.06 million in 2024. The reserves set aside for Better Homes Lanark makes the energy retrofit financing program one of the county’s largest reserve-backed initiatives, accounting for more than 11 per cent of all reserve funds.
The reserve allocation alone now exceeds funding levels for several established municipal purposes, including ambulance reserves and insurance reserves.
That combination — substantial borrowing alongside a large reserve fund — suggests Lanark County is preparing for significant program growth.
The financial statements show only $87,510 in long-term receivables had been issued by year-end, indicating relatively little financing had actually been lent out to homeowners as of Dec. 31 despite the county securing millions in funding.
Lanark County’s auditors did not flag the program as a concern, and the financial statements contain no indication of accounting irregularities or mismanagement.
Supporters of the program argue energy retrofit financing helps residents reduce emissions and lower utility costs while improving housing stock. Programs of this type, often supported by the Federation of Canadian Municipalities, have gained traction across Canada as municipalities look for ways to accelerate home energy retrofits.
