County investments deliver $21.48M in 2025, easing tax pressure and growing community funds
Prudent, policy-guided investing produced a 7.92% return last year, supported levy reductions, and continued to grow the Hydro Legacy Fund for future community priorities.
Haldimand County’s investment portfolio generated $21.48 million in net realized income in 2025, delivering an above-average overall return of 7.92% on $262.5 million under management. Strong performance across both fixed‑income and growth investments helped reduce tax pressure for residents, grow the Hydro Legacy Fund, and further reinforce the County’s long‑term financial stability.
The 2025 Investment Status Report (unaudited) was presented to Council in Committee on April 7, 2026. The full report is available on the county website.
With an investment strategy that emphasizes safety, stability, and long-term value, the County is directly supporting its Strategic Plan commitment to good governance, ensuring that public funds are managed responsibly, transparently, and with community needs in mind.
Key numbers at a glance
- $21.48M net realized investment income in 2025 (after fees)
- 7.92% overall portfolio return
- 4.98% fixed-income return ($7.5M cash interest) and 11.59% growth return ($14.0M)
- $1.6M applied to 2025 general tax levy (approx. 1.74% reduction)
- $2.0M allocated annually starting in 2026 (approx. 0.43% levy reduction)
- $105.3M Hydro Legacy Reserve Fund balance (unaudited), $21.4M of which is accumulated, uncommitted interest earnings
- $19.7M estimated Investment Income Stabilization Reserve balance
How this supports tax stability
In 2025, $1.6 million in interest income was applied directly to the general tax levy, reducing it by approximately 1.74%. Beginning in 2026, the County will allocate $2.0 million annually to the levy, providing an ongoing additional 0.43% reduction each year, or more than 2.0% reduced taxation moving forward.
After distributing earnings to required reserves, including interest‑bearing funds and the Hydro Legacy Reserve Fund, the County recorded a projected surplus of $11.61 million. In keeping with the County’s Investment Policy, this surplus will be transferred to the Investment Income Stabilization Reserve, increasing the reserve to an estimated $19.7 million.
This reserve acts as a financial buffer, helping stabilize budgets in years when markets perform differently.
“Strong investment performance helps reduce pressure on the tax levy while ensuring the County can continue delivering core services,” said Chief Financial Officer Mark Merritt. “This year’s results show how careful financial planning can directly benefit residents today and in the years ahead.”
Growing the Hydro Legacy Fund
The Hydro Legacy Fund Reserve ended 2025 with an unaudited balance of approximately $105.3 million, including $83.9 million in principal-protected funds and $21.4 million in accumulated, uncommitted interest earnings.
For 2025, the County’s Investment Committee, in consultation with an external investment manager, recommended applying the full target weighted average yield to maturity of 4.0% to the fund, resulting in approximately $4 million being allocated to the fund last year. This benchmark rate aligns with long-term projections to 2030 and supports steady, sustainable growth.
What this means for residents
The County’s strong investment performance helps keep tax increases lower, protects core services, and grows long-term community funds like the Hydro Legacy Reserve Fund. By combining prudent financial management with strategic reinvestment, Haldimand County is able to deliver consistent value for residents, supporting today’s services and tomorrow’s priorities.
Contact Us
Haldimand County
53 Thorburn Street South
Cayuga, Ontario
Canada, N0A 1E0
Phone: 905-318-5932
After hours (Road, Sewer, Water or Park & Public Facilities Emergencies): 1-888-849-7345
