$41,268,385forecast total of all reserve funds in 2030, down from $71,479,027 in 2024
A reserve fund is money set aside for a named purpose, such as replacing roads or vehicles. The 2026 budget book forecasts the total of all reserve funds falling from $71,479,027 (2024 actual) to $41,268,385 in 2030, a drop of $30,210,642 (worked out by us). In the same forecast, the Stormwater Capital reserve fund goes to $(3,714,604) in 2027, the General Vehicles & Equipment fund to $(3,107,901) in 2030 and the new Growth Reserve Fund to $(6,033,641) in 2030. The Municipality explains that a negative fund is borrowing from the funds that are positive, and says it is not meeting its own target balances for several funds. It also says reserves have grown by $65 million since 2015.
$88,013,436planned new borrowing for 14 projects, 2029 to 2031, of which $71,661,869 is development charge share
Development charges are fees collected from developers to pay for the roads, water and sewer lines and buildings that new homes and businesses need. At the end of 2025 Middlesex Centre's long-term debt was $13,740,386. The 2026 budget book lists fourteen water and wastewater projects to be paid for by new borrowing from 2029 to 2031, totalling $88,013,436, of which $71,661,869 is the share development charges are meant to cover. It says the interest on this borrowing would be $30,304,272 over 20 years, and that the debt payment limit used would rise to 19.95% of own-source revenue. The Municipality has explained why the development charge fund goes negative: projects are built before the charges are collected. It says the fund was negative until the end of 2024 and returned to a positive balance in 2025 because many projects were deferred as growth declined, and warns that larger projects will bring significant negative balances and borrowing.
$1,122,080budgeted for servicing cost expenses in 2026, against $175,800 in the 2025 budget
The 2026 budget book lists "Servicing Cost Expenses" of $1,122,080, up from $175,800 in the 2025 budget and $172,600 in the 2024 budget. Its notes say the increase "stems from anticipated legal costs" to be covered by the Legal Reserve Fund. The department page lists "Ongoing legal costs related to planning and development" as a trend. The Legal Reserve Fund is forecast to fall from $1,294,331 (2025) to $313,746 (2026), a fall of $980,585 (worked out by us). Separately, the 2025 financial statements say the Municipality is working with a developer on a cost-sharing agreement for services, where actual costs have not been documented and "may vary significantly" from staff estimates. The documents we read do not say whether the two are connected, or what the legal matters are.
$2,197,384long-term loan approved after year end 2025 under the Community Improvement Plan
The 2025 statements report a subsequent event: after the year end, the Municipality approved, subject to certain terms, a long-term loan of $2,197,384 under its Community Improvement Plan (CIP). The note says the plan was created to encourage private construction of facilities that improve recreation, that the loans are backed by security or guarantees, and that they will be repaid over no more than 15 years at the Infrastructure Ontario rate. The 2026 budget book says CIP grants issued in 2025 were worth $16,218. The documents we read do not say who the loan is for, what is being built, or when Council approved it.