Norfolk County reports strong financial results for 2024, continues progress toward long-term sustainability

Norfolk County’s 2024 Audited Financial Statements presented at yesterday's Council-and-Committee Meeting, offer a clear and comprehensive view of the County’s financial position and performance for the year ending December 31, 2024.

These statements were prepared in accordance with Public Sector Accounting Standards and independently audited by Millards Chartered Professional Accountants, confirming the statements fairly reflect the County’s financial situation. 

The results have left the County in a stronger position to handle the new challenges of 2025, including trade and tariff cost pressures and a slowed economy, as well as continued support for the County’s future plans and long-term sustainability. 

Financial highlights: 

• Norfolk County ended 2024 with a $10.7 million surplus (8.3%) in levy-supported operations and just over $2.1 million surplus (6.9%) in rate-supported operations. 
• The positive operating results are largely considered one-time in nature and will not result in future reductions in taxes or rates. The county continues to face significant pressures related to capital needs, inflation, and growth pressures which are projected to outpace the minor level of ongoing savings that occurred in 2024. 
• These surpluses were driven by staffing vacancies, lower-than-expected contract costs, and additional revenues. 
• Surplus funds were used to avoid issuing debt ($8.2 million), to strengthen reserves ($2.1 million), and to ensure the County is prepared for unanticipated emergencies ($2.1 million). 
• In addition to the surplus funds, strong investment results were also achieved, and used to avoid issuing debt ($6.0 million), for the purchase of waste management equipment ($5.0 million), and to strengthen reserves ($6.25 million). 
• The surplus and investment income distributions will help reduce future financial pressure on the levy and rate budgets, through avoiding annual debt payments of approximately $1.4 million and supporting future capital projects. 

Strategic investments and achievements: 

• Norfolk secured $16.5 million from the Housing-Enabling Water Systems Fund for upgrades to the Port Dover Water Treatment Plant—the largest capital grant in the County’s history. 
• Several long-term planning initiatives were launched in 2024, including a Facilities Review, Marina Sustainability Plan, Transit Master Plan, Asset Management Plan, and the conclusion of the Growth Study. 
• These strategic plans will guide future priorities and improve financial forecasting and planning. 

Looking ahead: 

While 2024 marked another step forward, challenges remain. Norfolk continues to face a $33.6 million annual infrastructure funding gap, and although reserves are growing, they remain below ideal levels. The County is also projected to have one of the highest rate supported debt levels per capita in Ontario, which could impact affordability for water and wastewater services. 

To address these challenges, Norfolk’s finance team is committed to: 

• Integrating the Asset Management Plan’s financial strategy into future budgets to close the infrastructure gap over the next decade. 
• Finalizing a new investment strategy for the County’s Legacy Fund, with a new investment manager onboarded in late 2024. 
• Continuing to review and modernize financial policies, while benchmarking best practices across municipalities to ensure continuous improvement. 

Norfolk County’s financial statements are audited by Millards Chartered Professional Accountants and are used by credit agencies, governments, and residents to assess the County’s financial health. To view the full report and supporting documents, visit norfolkcounty.ca/2024AuditedFinancialStatements. 

Items discussed at Council-in-Committee meetings are not final until ratified by Council at the next Council meeting. View upcoming meetings on the Council and Committee Calendar. 

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