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Joshua Glover

Policy · Value for Money · Ward 2

Value for Money

Joshua Glover  |  Candidate for Councillor, Ward 2

Under Ontario's Municipal Act, 2001, municipalities must prepare annual budgets in which estimated revenues equal estimated expenditures and they must account for any prior-year operational shortfalls.

When operating spending exceeds available revenue in a given year, Council may authorize transfers from reserves to show a legally balanced budget. Clarington’s multi-year budgets increasingly rely on transfers from the Rate Stabilization Reserve and project negative balances across key specialized reserve funds.

Reserves under pressure

Rate Stabilization Reserve: Budget documents project an estimated ending balance of $3,813,125 for 2026, falling below the Municipality's target balance of approximately $4.42 million to $8.84 million.

Future Staffing Reserve: Council approved withdrawals of $500,000 in 2025, approximately $1.4 million in 2026, and higher amounts in 2027 to partially fund permanent operating positions across Emergency Services, Public Works, and Community Services.

Growth, Reserves & Capital Debt

Building Division Reserve Deficit: In 2025, building permit fee revenues totaled $698,555 against divisional delivery costs of $3,891,822. Covering the resulting $3.19 million shortfall from reserves left the Building Division Reserve Fund in a deficit position of $4,140,378 at year-end, with further negative balances projected in subsequent years.

Development Charges & Capital Debt: Development Charges (DCs) are restricted funds designated to finance infrastructure required by new growth. Clarington has committed to substantial long-term debentures for major growth assets, including the Bowmanville Community Complex. With ongoing debt-servicing obligations and development charge collections lagging commitments, the Parks and Recreation DC reserve fund is projected to enter a deficit of over $8.3 million by year-end 2026.

Independent Value-for-Money Auditing

Clarington previously maintained dedicated internal audit capacity, operating under a 2022 municipal work plan that contemplated two internal audits and one Value-for-Money (VFM) audit annually. Since 2024, Durham Region's Internal Audit Division has provided full internal audit services to Clarington on an annual-fee basis, supporting the development and execution of Clarington's annual audit plan.

Rising operating payrolls, expanding capital debt commitments, and recurring reserve draws strengthen the case for regular, independent Value-for-Money auditing. Regular VFM audits provide Council and taxpayers with an objective, external check on whether municipal service delivery and contracted expenditures are achieving economy, efficiency, and effectiveness.

Policy Commitments

When elected Councillor for Ward 2, I will forward a motion to:

  • Guarantee annual Value-for-Money auditing: Direct that Clarington's annual audit plan include at least one independent VFM examination of municipal programs, service delivery or contracted expenditures each year.

  • Target the highest financial risks: Mandate a risk-based audit approach that prioritizes large-scale capital projects, municipal procurement contracts, rapidly expanding departmental payrolls, and growth-related reserve funds.

  • Table audit findings in open Council: Require that completed Value-for-Money reports and administrative recommendations be tabled directly on a public Council agenda for open debate and transparent review.

 

On October 26, vote Joshua Glover for Peace, Order, and Good Government.

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