Questions · 11 so far
We read McGarry's financial reports and meeting minutes, and compared its numbers with 43 similar Ontario towns. These are the things that stood out.
These are unusual enough that residents deserve a clear answer from council.
+17%town property tax, 2023 to 2024
In 2024, McGarry collected $136K more in its own property tax than in 2023. That is a 17% jump, while prices went up about 2.4%. Only 1 of 43 similar towns raised theirs by more. Almost all of it came from a higher tax rate (up 15% for homes); the value of homes on the tax roll grew only 0.0%.
Found automatically from the town's financial reports · 4 sources
$849Kowed in unpaid property tax, end of 2024
At the end of 2024, $849K of property tax had been billed but not paid. That is 84% of everything billed. None of the 43 similar towns had a higher share. A year earlier it was $1.2M.
Found automatically from the town's financial reports · 2 sources
There may well be a good reason. It is still worth asking what it is.
$938,806municipal debt at December 31, 2025, up from $511,389 a year earlier
At the end of 2025 the Township owed $938,806 in loans and a capital lease, up from $511,389 a year earlier (a rise of $427,417, worked out by us). The biggest new item is a $599,169 loan from RBC "for cash flow purposes", secured by future Province of Ontario funding and maturing in June 2030. The Township also repaid a $2,008,608 demand loan (a loan the bank can call at any time) that had financed its water upgrade. The 2026 budget report gives the Township's own view: it is "nearing its borrowing limit", so future loans will not be possible if unexpected costs arise, and the Finance Committee recommends putting $50,000 into reserves. Principal due in 2026 is $276,202, and interest paid in 2025 was $36,527 (2024: $32,608).
Found by reading the town's own documents · 4 sources
$2,240,330asbestos removal obligation at December 31, 2025, within $2,584,695 of total cleanup obligations
The statements record "asset retirement obligations", which are costs the Township is legally required to pay later to close or clean up what it owns. The total is $2,584,695 at December 31, 2025 (2024: $2,514,297). Of that, $2,240,330 is for asbestos removal in the Township's buildings, which the note says must be handled "upon renovation or demolition". The others are the landfill ($210,537), a gravel pit ($57,323), the water well and pumphouse ($68,243) and a fuel tank ($8,262). The statements list "Unfinanced asset retirement obligations" of $(2,584,695) in the accumulated surplus, next to net debt of $(1,966,524). The 2026 budget report says council has decided to sell the Tourist Centre and is exploring moving staff to the Community Centre. The report does not say which buildings contain asbestos.
Found by reading the town's own documents · 4 sources
$240,000Tourist Centre revenue in the 2026 budget, against $190 in 2025 (the report does not say what it is)
The 2026 budget report shows total revenue of $2,885,848 and total expenses of $2,911,061, a deficit of $25,213. One line stands out: the Tourist Centre has $240,000.00 of revenue in the 2026 budget, against $190.00 actually earned in 2025. Without it the deficit would be $265,213 (worked out by us). The report does not say what the $240,000 is. The same report says council "has decided to sell the Tourist Centre". In 2025 council closed the Tourist Centre for the season and its April 2025 staff report discussed moving the Township office into it if federal funding was found to renovate it.
Found by reading the town's own documents · 4 sources
General government covers the running of the Township itself. The Township's budget report says it includes wages for the Mayor, council and administrative staff, legal fees, audit costs and professional services, and training, memberships and website maintenance. In the audited statements it cost $1,060,509 in 2025, against a budget of $865,797 (a gap of $194,712, or 22.5%, worked out by us) and $802,728 in 2024. In the notes the biggest non-staff lines in this group are "Materials" of $548,524, contracted services of $61,617 and rents and financial expenses of $41,352. We did not find the Township's own explanation. The 2026 budget report, which shows departments on a different basis, has Administration at $677,511.60 for 2025 (not audited) against a budget of $750,154.00, so it does not show an overspend.
Found by reading the town's own documents · 4 sources
$2.0Min temporary loans, end of 2024
At the end of 2024, McGarry owed $2.0M on temporary loans. That is like putting 37% of a year's income on a line of credit. This is short-term borrowing for building projects, which is normal while waiting for a grant or a long-term loan. Only 4 of 43 similar towns had any temporary loans at the end of 2024.
Found automatically from the town's financial reports · 1 source
Background that helps make sense of the rest.
$479,634surplus on the tax-levy budget basis in 2025, against a budget of nil
Council sets the tax levy with a budget that counts borrowing and capital spending but leaves out amortization. On that basis the 2025 budget was balanced at nil and the actual result was a surplus of $479,634. The Township's April 2025 staff report, after council's cost cuts, said the budget had "a surplus of just over $25,277.00". The result includes new debt of $1,017,847 (budget: nothing) and debt repayments of $590,430 (budget $180,088). The net new borrowing of $427,417 (worked out by us) is part of the surplus, so without it the surplus would be $52,217 (worked out by us). The Township's reserves and surpluses grew by about the same amount as the surplus (see the question on reserve funds).
Found by reading the town's own documents · 3 sources
A reserve fund is money set aside for one purpose, such as the fire department or the library. At the end of 2024 the Township listed six reserve funds worth $368,388 in total: recreation programs and facilities $217,383, fire department $28,722, future development $11,749, library $2,738, waterworks capital projects $95,025 and community events $12,771. At the end of 2025 every one of them is shown as nil. In the same year "reserves, surpluses and deficits" rose from $707,989 to $1,556,977. The statements say reserves are "non-statutory and subject to change by council at any time". We did not find a note that says where the reserve funds went.
Found by reading the town's own documents · 2 sources
The water supply system carries its own balance in the accumulated surplus. At the end of 2025 it was a deficit of $(312,797), an improvement from $(457,380). The Township paid for its water upgrade project with a revolving loan facility of $2,356,033, which had $2,008,608 outstanding at the end of 2024 and nothing at the end of 2025. The 2026 budget report shows water revenue of $203,850.00 against expenses of $203,321.00, a surplus of $529.00. In 2025 the water department finished $39,231.03 ahead (not audited) after budgeting a deficit of $38,720.00, helped by a 5% increase in water, wastewater and debenture charges from July 1, 2025. The provincial grant for the water and sewer project (NORDS) is finished and will pay nothing in 2026.
Found by reading the town's own documents · 4 sources
−$1.9Mnet financial position, 2024
In 2019, McGarry had $374K more in cash and money owed to it than it owed to others. By 2024 it was −$1.9M. About 108% of that change ($2.5M) is a new accounting rule from 2023: towns must now record the future cost of closing things like a landfill. That is not new spending or borrowing. Even leaving that out, only 13 of 43 similar towns are in a weaker position.
Found automatically from the town's financial reports · 2 sources
+17%town property tax, 2023 to 2024
In 2024, McGarry collected $136K more in its own property tax than in 2023. That is a 17% jump, while prices went up about 2.4%. Only 1 of 43 similar towns raised theirs by more. Almost all of it came from a higher tax rate (up 15% for homes); the value of homes on the tax roll grew only 0.0%.
| Year | Town property tax |
|---|---|
| 2019 | $780K |
| 2020 | $778K |
| 2021 | $785K |
| 2022 | $801K |
| 2023 | $815K |
| 2024 | $951K |
A big one-year jump usually means something changed: a new cost, a service that grew, savings being rebuilt, or a problem from earlier years being paid for now. Residents should be able to see exactly which. Spread across every home, it is about $471 more each year.
You can ask during the public part of a council meeting, by writing to the clerk, or by contacting your councillors. How to reach council.
Speak for McGarry? Send us your answer and we will publish it with this question.
Town property tax: $814,588 in 2023, $951,087 in 2024.
Ontario Financial Information Return (FIR), 2019 to 2024 · Schedule 10, line 9940 · archived copy
Typical increase among 43 similar Ontario towns: 6.4%. McGarry ranks 2nd highest.
Ontario Financial Information Return (FIR), 2024, 43 similar municipalities · Schedule 10, line 9940 · archived copy
Residential tax rate (town share): 2.349% in 2023, 2.701% in 2024. Residential assessment: $33.5M to $33.5M.
Ontario Financial Information Return (FIR), 2019 to 2024 · Schedule 22, residential (RT) · archived copy
Prices (inflation) rose 2.4% over the same year.
$849Kowed in unpaid property tax, end of 2024
At the end of 2024, $849K of property tax had been billed but not paid. That is 84% of everything billed. None of the 43 similar towns had a higher share. A year earlier it was $1.2M.
| Year | Unpaid property tax at year end |
|---|---|
| 2019 | $1.3M |
| 2020 | $1.1M |
| 2021 | $1.1M |
| 2022 | $991K |
| 2023 | $1.2M |
| 2024 | $849K |
When taxes go unpaid, everyone else carries the cost, and the town may borrow to cover the gap. The Province's financial indicators treat 10% to 15% as a moderate risk and more than 15% as a high risk. Collection is the town's job, so a rising number is worth asking about.
You can ask during the public part of a council meeting, by writing to the clerk, or by contacting your councillors. How to reach council.
Speak for McGarry? Send us your answer and we will publish it with this question.
Taxes receivable: 2019 $1.3M, 2020 $1.1M, 2021 $1.1M, 2022 $991K, 2023 $1.2M, 2024 $849K. Of the 2024 total, $767K was from earlier years.
Ontario Financial Information Return (FIR), 2019 to 2024 · Schedule 70, lines 0610 to 0699 · archived copy
Typical among similar towns: 11.9% of taxes billed.
Ontario Financial Information Return (FIR), 2024, 43 similar municipalities · Schedules 26 and 70 · archived copy
$938,806municipal debt at December 31, 2025, up from $511,389 a year earlier
At the end of 2025 the Township owed $938,806 in loans and a capital lease, up from $511,389 a year earlier (a rise of $427,417, worked out by us). The biggest new item is a $599,169 loan from RBC "for cash flow purposes", secured by future Province of Ontario funding and maturing in June 2030. The Township also repaid a $2,008,608 demand loan (a loan the bank can call at any time) that had financed its water upgrade. The 2026 budget report gives the Township's own view: it is "nearing its borrowing limit", so future loans will not be possible if unexpected costs arise, and the Finance Committee recommends putting $50,000 into reserves. Principal due in 2026 is $276,202, and interest paid in 2025 was $36,527 (2024: $32,608).
Debt has to be paid back from taxes, user fees and grants. A township that has told its own council it is near its limit has little room for a surprise. Residents may want to know which grants the cash-flow loan is waiting for, and when they are due.
You can ask during the public part of a council meeting, by writing to the clerk, or by contacting your councillors. How to reach council.
Speak for McGarry? Send us your answer and we will publish it with this question.
Note 9, Municipal debt: "RBC Loan for cash flow purposes, repayable in blended monthly payments of $12,257 including interest at a variable rate of 3.95%, secured by future Province of Ontario funding, maturing June 2030." 599,169 (2024: -). "Total loans and debentures" 888,429 (2024: 408,617); capital lease 50,377 (2024: 102,772); "Total municipal debt" 938,806 (2024: 511,389). Principal repayments due: 2026 276,202; 2027 192,238; 2028 200,041; 2029 204,891; 2030 65,434.
The Corporation of the Township of McGarry, Consolidated Financial Statements, December 31, 2025 (Kemp Elliott & Blair LLP, July 14, 2026) · Note 9, Municipal debt, PDF pages 16 and 17 (printed pages 14 and 15); scanned pages read by eye
Consolidated Statement of Cash Flows, 2025: financing activities "Demand loan received (repaid)" (2,008,608) (2024: 2,008,608); "New debt issued" 1,017,847; "Debt repayments" (590,430); cash used for financing activities (1,581,191). "Accounts receivable" change in working capital 1,472,239 (2024: (1,494,143)). "Interest paid" 36,527 (2024: 32,608). Cash 1,158,051.
The Corporation of the Township of McGarry, Consolidated Financial Statements, December 31, 2025 (Kemp Elliott & Blair LLP, July 14, 2026) · Consolidated Statement of Cash Flows, PDF page 9 (printed page 7); scanned page read by eye
Note 5, Short-term debt: a revolving loan facility "to finance the water upgrade project" of $2,356,033, authorized by By-Law 2024-24; outstanding balance at December 31, 2025 "$nil" (2024 $2,008,608). A line of credit authorized by By-Law 2025-02 had a balance of "$nil".
The Corporation of the Township of McGarry, Consolidated Financial Statements, December 31, 2025 (Kemp Elliott & Blair LLP, July 14, 2026) · Note 5, Short-term debt, PDF page 14 (printed page 12); scanned page read by eye
Budget for 2026, item 4, Borrowing Capacity & Cash Flow: "The Township is nearing its borrowing limit, meaning future loans will not be possible should unexpected expenses arise." The Finance Committee "recommends transferring $50,000 to the reserves for unforeseen circumstances." Item 6: "This has led to ongoing cash flow difficulties".
Staff Report to Municipal Council: Budget 2026 (report date March 27, 2026; meeting April 14, 2026) · "Budget for 2026", items 4 and 6, PDF page 4; scanned page read by eye
$2,240,330asbestos removal obligation at December 31, 2025, within $2,584,695 of total cleanup obligations
The statements record "asset retirement obligations", which are costs the Township is legally required to pay later to close or clean up what it owns. The total is $2,584,695 at December 31, 2025 (2024: $2,514,297). Of that, $2,240,330 is for asbestos removal in the Township's buildings, which the note says must be handled "upon renovation or demolition". The others are the landfill ($210,537), a gravel pit ($57,323), the water well and pumphouse ($68,243) and a fuel tank ($8,262). The statements list "Unfinanced asset retirement obligations" of $(2,584,695) in the accumulated surplus, next to net debt of $(1,966,524). The 2026 budget report says council has decided to sell the Tourist Centre and is exploring moving staff to the Community Centre. The report does not say which buildings contain asbestos.
The obligation grows each year (by $70,398 of accretion expense in 2025) and falls due when a building is renovated or taken down. Decisions about selling or reusing buildings could bring that day closer. Residents may want to know whether the Township has a plan to pay for it.
You can ask during the public part of a council meeting, by writing to the clerk, or by contacting your councillors. How to reach council.
Speak for McGarry? Send us your answer and we will publish it with this question.
Note 8, Asset retirement obligations: balance, beginning of year 2,514,297; accretion expense 70,398; balance, end of year 2,584,695. At year end: landfill 210,537 (2024: 204,803); asbestos removal 2,240,330 (2,179,310); gravel pit 57,323 (55,762); water well and pumphouse 68,243 (66,385); fuel tank removal 8,262 (8,037); total 2,584,695 (2,514,297).
The Corporation of the Township of McGarry, Consolidated Financial Statements, December 31, 2025 (Kemp Elliott & Blair LLP, July 14, 2026) · Note 8, Asset retirement obligations, PDF page 15 (printed page 13); scanned page read by eye
Note 8, Asbestos removal: "The Township owns buildings which contain asbestos, and therefore, the Township is legally required to perform abatement activities upon renovation or demolition of these assets." "Assumptions were made regarding the remaining useful life of the building".
The Corporation of the Township of McGarry, Consolidated Financial Statements, December 31, 2025 (Kemp Elliott & Blair LLP, July 14, 2026) · Note 8, Asbestos removal, PDF page 16 (printed page 14); scanned page read by eye
Note 10, Accumulated surplus, "Amounts to be recovered": "Unfinanced asset retirement obligations" (2,584,695) (2024: (2,514,297)); "Unfinanced municipal debt" (938,806) (511,389); total (3,523,501) (2024: (3,025,686)). "Net debt" (1,966,524) (2024: (1,949,309)). Accumulated surplus 9,365,747.
The Corporation of the Township of McGarry, Consolidated Financial Statements, December 31, 2025 (Kemp Elliott & Blair LLP, July 14, 2026) · Note 10, Accumulated surplus, PDF page 18 (printed page 16); scanned page read by eye
Budget for 2026, item 5, Property Management & Cost-Cutting Measures: "the Council has decided to sell the Tourist Centre and is exploring the potential relocation of staff to the Community Centre. However, no definitive decision has been made regarding this relocation at this time."
Staff Report to Municipal Council: Budget 2026 (report date March 27, 2026; meeting April 14, 2026) · "Budget for 2026", item 5, PDF page 4; scanned page read by eye
$240,000Tourist Centre revenue in the 2026 budget, against $190 in 2025 (the report does not say what it is)
The 2026 budget report shows total revenue of $2,885,848 and total expenses of $2,911,061, a deficit of $25,213. One line stands out: the Tourist Centre has $240,000.00 of revenue in the 2026 budget, against $190.00 actually earned in 2025. Without it the deficit would be $265,213 (worked out by us). The report does not say what the $240,000 is. The same report says council "has decided to sell the Tourist Centre". In 2025 council closed the Tourist Centre for the season and its April 2025 staff report discussed moving the Township office into it if federal funding was found to renovate it.
A budget that depends on selling a building is only as firm as the sale. If the building is not sold in 2026, or sells for less, the gap is paid from reserves, borrowing or a larger tax increase, and the Township says it is near its borrowing limit. Residents may also want to know what the building was appraised at and whether the sale is open to everyone.
You can ask during the public part of a council meeting, by writing to the clerk, or by contacting your councillors. How to reach council.
Speak for McGarry? Send us your answer and we will publish it with this question.
Proposed 2026 revenue and expenses, "TOURIST CENTRE" (800): revenue 2026 budget 240,000.00, 2025 actual not audited 190.00, 2025 budget 0.00; expense 25,517.00, 26,561.42, 15,254.00; total $214,483.00 (2025 actual -$26,371.42). Grand total: "Total Revenue" $2,885,848.00; "Total Expenses" $2,911,061.00; "GRAND TOTAL" -$25,213.00 (2026 budget).
Staff Report to Municipal Council: Budget 2026 (report date March 27, 2026; meeting April 14, 2026) · Department tables, Tourist Centre and Grand Total, PDF page 2; scanned page read by eye
Budget for 2026, item 1: the Township "faced a deficit exceeding $110,000", which the Committee "reduced ... to just over $25,000". Item 5: "the Council has decided to sell the Tourist Centre". Financial Consideration: "The proposed 2.5% tax increase of $25,213 would be needed".
Staff Report to Municipal Council: Budget 2026 (report date March 27, 2026; meeting April 14, 2026) · "Budget for 2026", items 1 and 5, PDF page 4; "Financial Consideration", PDF page 5; scanned pages read by eye
2025 Budget Decisions: "The Tourist Centre will be closed for the 2025 season."
2025 Budget Decisions · List of decisions, PDF page 1; scanned page read by eye
"A discussion was held regarding the feasibility of relocating the Township Office to the Tourist Centre Building if funding is obtained from Fed Nor to renovate the building." Council gave staff no direction on this.
Staff Report to Municipal Council: Budget Report (report date April 25, 2025; special meeting April 29, 2025) · Background, PDF page 1; scanned page read by eye
General government covers the running of the Township itself. The Township's budget report says it includes wages for the Mayor, council and administrative staff, legal fees, audit costs and professional services, and training, memberships and website maintenance. In the audited statements it cost $1,060,509 in 2025, against a budget of $865,797 (a gap of $194,712, or 22.5%, worked out by us) and $802,728 in 2024. In the notes the biggest non-staff lines in this group are "Materials" of $548,524, contracted services of $61,617 and rents and financial expenses of $41,352. We did not find the Township's own explanation. The 2026 budget report, which shows departments on a different basis, has Administration at $677,511.60 for 2025 (not audited) against a budget of $750,154.00, so it does not show an overspend.
General government is the cost of running the Township rather than a service to the public, and it is the largest group. When it is a fifth over budget, residents may want to know what drove it and whether it will repeat.
You can ask during the public part of a council meeting, by writing to the clerk, or by contacting your councillors. How to reach council.
Speak for McGarry? Send us your answer and we will publish it with this question.
Consolidated Statement of Operations, expenditures: "General government" 2025 budget 865,797, actual 1,060,509, 2024 actual 802,728. "Total expenditures" 3,077,719 (budget), 3,199,013, 2,783,794.
The Corporation of the Township of McGarry, Consolidated Financial Statements, December 31, 2025 (Kemp Elliott & Blair LLP, July 14, 2026) · Consolidated Statement of Operations, PDF page 7 (printed page 5); scanned page read by eye
Note 15, Segmented information, expenditures, General Government Services column: "Materials" 548,524; "Contracted services" 61,617; "Rents and financial expenses" 41,352; "Amortization" 12,415; "Total expenditures" 1,060,509.
The Corporation of the Township of McGarry, Consolidated Financial Statements, December 31, 2025 (Kemp Elliott & Blair LLP, July 14, 2026) · Note 15, Segmented information - continued, PDF page 24; scanned page read by eye
Operating Budget, 1. General Governance, Purpose: "Covers the operational costs of running the local government." Includes: "Wages for the Mayor, Council, and administrative staff"; "Legal fees, audit costs, and professional services"; "Training, seminars, memberships, and website maintenance".
Staff Report to Municipal Council: Budget 2026 (report date March 27, 2026; meeting April 14, 2026) · Operating Budget, item 1, PDF page 3; scanned page read by eye
Proposed 2026 revenue and expenses by department, "ADMINISTRATION" (130): expense 2026 budget 738,267.00, 2025 actual not audited 677,511.60, 2025 budget 750,154.00.
Staff Report to Municipal Council: Budget 2026 (report date March 27, 2026; meeting April 14, 2026) · Department tables, Administration, PDF page 1; scanned page read by eye
$2.0Min temporary loans, end of 2024
At the end of 2024, McGarry owed $2.0M on temporary loans. That is like putting 37% of a year's income on a line of credit. This is short-term borrowing for building projects, which is normal while waiting for a grant or a long-term loan. Only 4 of 43 similar towns had any temporary loans at the end of 2024.
| Year | Temporary loans |
|---|---|
| 2019 | $0 |
| 2020 | $0 |
| 2021 | $0 |
| 2022 | $0 |
| 2023 | $0 |
| 2024 | $2.0M |
Short-term loans usually cost more interest and can be called in. If they roll over year after year, the town is really carrying debt that does not show up as long-term debt.
You can ask during the public part of a council meeting, by writing to the clerk, or by contacting your councillors. How to reach council.
Speak for McGarry? Send us your answer and we will publish it with this question.
Temporary loans: 2019 $0, 2020 $0, 2021 $0, 2022 $0, 2023 $0, 2024 $2.0M.
Ontario Financial Information Return (FIR), 2019 to 2024 · Schedule 70, line 2099 · archived copy
$479,634surplus on the tax-levy budget basis in 2025, against a budget of nil
Council sets the tax levy with a budget that counts borrowing and capital spending but leaves out amortization. On that basis the 2025 budget was balanced at nil and the actual result was a surplus of $479,634. The Township's April 2025 staff report, after council's cost cuts, said the budget had "a surplus of just over $25,277.00". The result includes new debt of $1,017,847 (budget: nothing) and debt repayments of $590,430 (budget $180,088). The net new borrowing of $427,417 (worked out by us) is part of the surplus, so without it the surplus would be $52,217 (worked out by us). The Township's reserves and surpluses grew by about the same amount as the surplus (see the question on reserve funds).
A surplus built partly on borrowed money is not the same as money left over from taxes. The Township has said it needs to build reserves. Residents may want to know how much of the new reserve is cash and how much is the result of the new loans.
You can ask during the public part of a council meeting, by writing to the clerk, or by contacting your councillors. How to reach council.
Speak for McGarry? Send us your answer and we will publish it with this question.
Note 13, Budgeting, 2025 on the tax-levy basis: total revenues budget 3,313,018, actual 4,354,245, including "New debt issued" 1,017,847 (budget: -); "Capital expenditures" budget 569,052, actual 599,009; "Long term debt repayments" budget 180,088, actual 590,430; total expenditures 3,313,018 and 3,874,611. "Surplus (deficit), tax levy budget base" budget "-", actual 479,634 (2024: 954,587).
The Corporation of the Township of McGarry, Consolidated Financial Statements, December 31, 2025 (Kemp Elliott & Blair LLP, July 14, 2026) · Note 13, Budgeting - continued, PDF page 21 (printed page 19); scanned page read by eye
Conclusion: "After all the modifications have been implemented, we currently have a surplus of just over $25,277.00." Earlier in the report the first draft of the 2025 budget faced a deficit "exceeding $375,000.00" and, after departments resubmitted, "just over $106,000.00".
Staff Report to Municipal Council: Budget Report (report date April 25, 2025; special meeting April 29, 2025) · Background, PDF page 1, and Conclusion, PDF page 3; scanned pages read by eye
Note 10, Accumulated surplus: "Working funds reserve" 383,071 (2024: 109,707); "General fund" 521,412 (216,714); total reserves, surpluses and deficits 1,556,977 (707,989).
The Corporation of the Township of McGarry, Consolidated Financial Statements, December 31, 2025 (Kemp Elliott & Blair LLP, July 14, 2026) · Note 10, Accumulated surplus, PDF page 18 (printed page 16); scanned page read by eye
A reserve fund is money set aside for one purpose, such as the fire department or the library. At the end of 2024 the Township listed six reserve funds worth $368,388 in total: recreation programs and facilities $217,383, fire department $28,722, future development $11,749, library $2,738, waterworks capital projects $95,025 and community events $12,771. At the end of 2025 every one of them is shown as nil. In the same year "reserves, surpluses and deficits" rose from $707,989 to $1,556,977. The statements say reserves are "non-statutory and subject to change by council at any time". We did not find a note that says where the reserve funds went.
Reserve funds are usually set up by a council decision for a specific purpose. If their balances were spent, moved to a general reserve or closed, residents should be able to see that decision.
You can ask during the public part of a council meeting, by writing to the clerk, or by contacting your councillors. How to reach council.
Speak for McGarry? Send us your answer and we will publish it with this question.
Note 10, Accumulated surplus, "Reserve funds": "Recreation programs and facilities" nil (2024: 217,383); "Fire department" nil (28,722); "Future development" nil (11,749); "Library" nil (2,738); "Waterworks capital projects" nil (95,025); "Community events" nil (12,771); total nil (2024: 368,388). "Working funds reserve" 383,071 (109,707). Reserves "are non-statutory and subject to change by council at any time."
The Corporation of the Township of McGarry, Consolidated Financial Statements, December 31, 2025 (Kemp Elliott & Blair LLP, July 14, 2026) · Note 10, Accumulated surplus, PDF page 18 (printed page 16); scanned page read by eye
Note 10, Accumulated surplus: "Reserves, surpluses and deficits" total 1,556,977 (2024 707,989), including "Working funds reserve" 383,071 (109,707).
Township of McGarry, 2025 Financial Statements · Note 10, Accumulated surplus, PDF page 18 (printed page 16); scanned page
The water supply system carries its own balance in the accumulated surplus. At the end of 2025 it was a deficit of $(312,797), an improvement from $(457,380). The Township paid for its water upgrade project with a revolving loan facility of $2,356,033, which had $2,008,608 outstanding at the end of 2024 and nothing at the end of 2025. The 2026 budget report shows water revenue of $203,850.00 against expenses of $203,321.00, a surplus of $529.00. In 2025 the water department finished $39,231.03 ahead (not audited) after budgeting a deficit of $38,720.00, helped by a 5% increase in water, wastewater and debenture charges from July 1, 2025. The provincial grant for the water and sewer project (NORDS) is finished and will pay nothing in 2026.
Water users pay for water through their bills. A deficit means other taxpayers or other funds are covering it. The 2026 budget leaves almost no room for a repair, and the upgrade's debt has to be paid back.
You can ask during the public part of a council meeting, by writing to the clerk, or by contacting your councillors. How to reach council.
Speak for McGarry? Send us your answer and we will publish it with this question.
Note 10, Accumulated surplus: "Water supply system" (312,797) (2024: (457,380)); "Sanitary sewer system" 552,449 (2024: 428,927).
The Corporation of the Township of McGarry, Consolidated Financial Statements, December 31, 2025 (Kemp Elliott & Blair LLP, July 14, 2026) · Note 10, Accumulated surplus, PDF page 18 (printed page 16); scanned page read by eye
Note 5, Short-term debt: a revolving loan facility "to finance the water upgrade project" of $2,356,033; outstanding balance at December 31, 2025 "$nil" (2024 $2,008,608).
The Corporation of the Township of McGarry, Consolidated Financial Statements, December 31, 2025 (Kemp Elliott & Blair LLP, July 14, 2026) · Note 5, Short-term debt, PDF page 14 (printed page 12); scanned page read by eye
Proposed 2026 revenue and expenses, "WATER" (900): revenue 2026 budget 203,850.00, 2025 actual not audited 204,325.05, 2025 budget 206,400.00; expense 203,321.00, 165,094.02, 245,120.00; total $529.00, $39,231.03, -$38,720.00. "Ontario's Northern Ontario Resource Development Support (NORDS) - This funding is complete and we will not be receiving anything in 2026."
Staff Report to Municipal Council: Budget 2026 (report date March 27, 2026; meeting April 14, 2026) · Water table, PDF page 2, and "Funding", PDF page 4; scanned pages read by eye
2025 Budget Decisions: "Increase the water, wastewater, and debenture charges by 5%, effective July 1, 2025".
2025 Budget Decisions · List of decisions, PDF page 1; scanned page read by eye
−$1.9Mnet financial position, 2024
In 2019, McGarry had $374K more in cash and money owed to it than it owed to others. By 2024 it was −$1.9M. About 108% of that change ($2.5M) is a new accounting rule from 2023: towns must now record the future cost of closing things like a landfill. That is not new spending or borrowing. Even leaving that out, only 13 of 43 similar towns are in a weaker position.
| Year | Net financial position |
|---|---|
| 2019 | $374K |
| 2020 | −$248K |
| 2021 | −$260K |
| 2022 | −$795K |
| 2023 | −$3.0M |
| 2024 | −$1.9M |
This number is one of the clearest signs of whether a town is living within its means. The accounting-rule part is a bill that will come due when the landfill closes, not money already spent. The rest is real borrowing and spending of savings.
You can ask during the public part of a council meeting, by writing to the clerk, or by contacting your councillors. How to reach council.
Speak for McGarry? Send us your answer and we will publish it with this question.
Net financial assets: 2019 $374K, 2020 −$248K, 2021 −$260K, 2022 −$795K, 2023 −$3.0M, 2024 −$1.9M.
Ontario Financial Information Return (FIR), 2019 to 2024 · Schedule 70, line 9945 · archived copy
Future landfill and similar closing costs recorded: $2.5M. Long-term debt: $511K. Temporary loans: $2.0M.
Ontario Financial Information Return (FIR), 2019 to 2024 · Schedule 70, lines 2920, 2699, 2099 · archived copy