Norfolk County Historical Financial Review: Summary

At the October 16, 2024, Council meeting, the Council passed a motion asking staff to provide a high-level summary of the County’s finances over the past 10 years, focusing on the key areas below. 

Reserve balances 

Over the past 10 years, Norfolk County has significantly increased its financial reserves. These reserves are like savings accounts that help fund major projects and keep services running smoothly.  The County’s reserves grew from $30 million in 2015 to over $200 million by the end of 2024, including $85 million in levy capital reserves that support infrastructure like roads and buildings.  While the total may seem large, it’s essential for future needs given the County’s previously approved commitments of $130 million and $300+ million in total annual spending. 

Tax and rate increases 

Over the past decade, Norfolk County’s property taxes and utility rates have gone up more than the general cost of living.  Despite these increases, Norfolk’s property taxes are still at or below average compared to other municipalities of similar geography or similar size. Part of the tax increase each year is a transfer to reserves to make sure there’s enough money to take care of roads, buildings, and other important things. 

Debt and our capital budgets 

In the past, Norfolk didn’t save enough to replace old infrastructure, so it had to borrow money. As a result, Norfolk’s debt has grown from $40 million in 2015 to $78 million in 2024, with much more borrowing approved but not yet issued for important infrastructure projects like roads and water systems.  Norfolk is focused on better planning and budgeting to manage costs more carefully. The County wants to save more money and get more help from grants, so it doesn’t have to borrow as much. The goal is to keep services strong while making sure costs stay affordable for residents. 

Capital and operating budgets 

Over the past 10 years, Norfolk County approved $643 million for capital projects like roads and water systems, but only $430 million was actually spent—mostly because many projects take years to complete.  To speed things up and reduce the backlog, the County is improving how it tracks and manages capital projects.  

At the same time, the County’s day-to-day budget for services like garbage and snow removal has seen yearly changes, sometimes ending with extra money left over, and other times spending more than planned.  Budgeting has become more careful, with better cost estimates and clearer rules for new spending. These changes are helping the County manage money more responsibly and plan better for the future.  

Reserve Contributions: How Norfolk is saving for the future 

Reserves are like the County’s savings accounts. They help pay for big projects, emergencies, and future needs without having to borrow or raise taxes suddenly. Each year, the County adds money to these reserves (contributions) and takes money out to pay for approved projects (withdrawals).  

From 2015 to 2024, Norfolk added $239 million to its savings (reserves) through budgeted contributions, but took out $256 million. In the past, Norfolk had to use its emergency fund to cover shortfalls, which left very little saved. Now, the County is working to build up reserves again to avoid borrowing and to be ready for future needs. 

Investments 

When the County has extra cash on hand—money not immediately needed for day-to-day operations—it doesn’t just sit in a bank account. Instead, it’s invested in safe, short- and medium-term options. From 2015 to 2024, short- and medium-term investments earned $32 million, helping to lower taxes, support services, and grow savings.   

The Legacy Fund is a special long-term investment created from the sale of Norfolk Power. It’s designed to grow over time and help fund important community needs without raising taxes. The Legacy Fund earned nearly $35 million in the same period, helping pay for major road work and future hospital support—without raising taxes or borrowing more. Solid financial planning means Norfolk is in a good position to make smart use of its funds and support important community needs. 

Community Investment 

While all County spending benefits the community, some programs over the past 10 years were specifically designed to reinvest in local people, places, and projects. These include support for Norfolk General Hospital, scholarships, local businesses through the Community Improvement Plan, and community events. These programs help improve quality of life, create a community to be proud of, boost local pride, and support long-term growth.  

Newer programs, like Community-Led Initiatives, provide the County opportunities to partner with community groups to support local events and grassroots projects. 

Spending habits and trends from 2015 to 2024 

Over the past 10 years, Norfolk County’s spending has changed in important ways. The County is facing financial pressure to maintain essential services like emergency response, water treatment, and road maintenance. With a growing population and changing demographics, the demand for services is increasing, driving up costs.  

Provincial regulations, rising prices for construction and utilities, and climate-related expenses are adding to the strain. While the County is saving more for future needs, its debt has also grown, leading to higher repayments.  

To manage this, Norfolk is improving planning and aiming to balance growth, service quality, and affordability. 

Policy Improvements 

Norfolk County regularly reviews and updates its financial policies to keep up with changing laws, accounting standards, and community needs. These policies help ensure transparency, consistency, and accountability in how the County manages public funds. 

These policy updates help Norfolk County stay financially strong, accountable, and ready to adapt to future challenges, ensuring taxpayer dollars are managed wisely. 

Norfolk’s Financial Health: 2015–2024 

Over the past decade, Norfolk County has made important progress in managing its finances. To give residents a clear picture of where things stand today, the County tracks how well it’s planning, saving, and preparing for the future. Indicators such as savings, debt, and infrastructure conditions help explain what’s working well and where more attention may be needed. From 2015 to 2024, the County made big improvements in planning, budgeting and managing debt. The Asset Management Plan will help the County plan ahead for fixing and replacing aging infrastructure. Stronger financial health today means more flexibility and stability for the future. 

Looking back and moving forward 

Over the past decade, Norfolk County has faced financial challenges, but with County staff and Council working together, major strides have been made in building a stronger, more informed, and more resilient financial foundation for the future.