City of Vancouver records $530-million surplus for 2025 | Daily Hive

Vancouver City Hall. (Shawn.ccf/Shutterstock)

The City of Vancouver finished the 2025 fiscal year in a solid financial position, reporting a surplus of $530.4 million and continued growth in assets and infrastructure, according to its latest audited financial report released today.

The results were better than expected, beating the municipal government’s expected surplus of $386 million, and helped push the City’s total “accumulated surplus” to nearly $11 billion.

An accumulated surplus is the total net equity of an organization, representing the cumulative excess of revenue over expenses from all prior years, added to the current period’s surplus.

However, according to the report, the $530.4 million surplus in 2025 — down from the surplus of $861 million in 2024 — does not mean the City has that much extra money available to spend freely. Instead, it reflects how accounting rules record revenue and expenses at different times.

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Much of the fiscal year’s $530.4-million surplus comes from funds received in 2025 — such as the Empty Homes Tax revenue, developer contributions, and utility fees — that are earmarked for future projects like new affordable housing and infrastructure. While the revenue is counted right away, the related expenses are spread out over many years, making the surplus appear larger in the short term. As a result, most of this money is already committed and restricted to specific uses, rather than being available for general spending.

Property tax revenue jump

Overall, the municipal government brought in about $3.1 billion in revenue during the year. Much of this came from property taxes, which increased significantly, along with higher utility fees paid by residents and businesses.

Property tax revenues climbed from $1.272 billion in 2024 to $1.414 billion in 2025, exceeding the forecast of $1.323 billion. Revenue from utility fees increased from $426 million in 2024 to $499 million in 2025.

Program fee revenues went up from $155 million in 2024 to $157 million in 2025, while parking fee revenues climbed from $107 million in 2024 to $112 million in 2025.

However, not all revenue sources grew — payments from builders and developers for their new building developments dropped by more than $280 million, largely due to the weak real estate market, from $480 million in 2024 to $197 million in 2025. This was higher than the forecast of $158 million.

As well, investment income also fell slightly as interest rates declined.

Operating expenditures went over by $160 million more than forecast

At the same time, Vancouver’s municipal government had an operating budget of about $2.545 billion in 2025 — up from $2.304 billion in 2024 and exceeding 2025’s forecast of $2.385 billion by about $160 million. The increase was mainly due to higher wages, benefits, and rising costs for supplies and services. For example, salaries and benefits alone rose by over $100 million, reflecting inflation and labour agreements.

A major focus for the City remained long-term investment. In 2025, the municipal government spent $729 million on capital projects, including new affordable housing, roads, utilities, and community and recreational facilities. These investments helped boost the City’s total non-financial assets — things like buildings and infrastructure — to about $9.4 billion.

The City’s financial position also improved slightly, with net financial assets — essentially what’s left after subtracting liabilities — rising to $1.54 billion, an increase of about $46 million from the previous year. This indicates the municipal government still has flexibility to fund future projects and services.

Debt levels increased modestly, with total outstanding debt reaching $1.07 billion, up by about $50 million. Even so, the City’s debt remains manageable, especially given its strong financial position and high credit ratings. The City continues to hold top-tier ratings from major credit rating agencies, which allows it to borrow money at lower interest rates.

The City has also built up significant reserves, now totalling more than $2.3 billion. These funds are set aside for specific purposes such as new affordable housing, infrastructure upgrades, and emergency financial needs, providing a safety net against economic uncertainty.

There have been significant annual increases to Vancouver’s property tax rates over the past decade, especially in the years since the pandemic.

However, for 2026, there will be a zero per cent property tax increase in response to criticism the municipal government has received over the cumulative major increases in property taxes in recent years. If re-elected in the October 2026 civic election, Mayor Ken Sim’s ABC Vancouver governing party has also promised another zero per cent increase in 2027, followed by annual property tax increases that track inflation beginning in 2029.

Before the municipal government’s August 2026 break, Vancouver City Council is expected to finalize its four-year 2027-2030 capital plan, which focuses on building new and improved infrastructure and facilities. Accelerating the renewal of Vancouver’s aging aquatic, community, and recreational centres is expected to be a top priority.

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