On behalf of the Board of Directors, I am pleased to present the financial report of Municipalities Newfoundland and Labrador (MNL) for the year ended December 31, 2025. The year was marked by significant growth in project activity, continued positive financial results, and a strengthened cash position. These results reflect MNL’s ongoing commitment to responsible financial stewardship while expanding programs and services that support municipalities across Newfoundland and Labrador.
MNL recorded total revenue of $2,603,302 in 2025, compared with $1,818,911 in 2024. Total expenses were $2,593,347, compared with $1,763,362 in the previous year. After other income, MNL achieved an annual surplus of $14,140, marking another year of positive results. Although the surplus was lower than the $58,023 reported in 2024, the organization continued to operate within its overall revenues during a period of substantial program expansion.
The most significant change in 2025 was the expansion of externally funded projects. Project revenue rose to $950,048 from $223,124 in 2024, reflecting increased activity in areas including housing capacity building, climate initiatives, Tomorrow’s Towns, bookkeeping support, emergency preparedness, and community development. Related project expenditures increased to $869,811, demonstrating the scale of work delivered on behalf of municipal members and funding partners.
Membership assessment revenue increased to $539,842 from $515,339, while sponsorship revenue grew to $135,787 from $129,829. Meetings and events generated $666,472 in revenue, compared with $660,630 in 2024. These sources remain important components of MNL’s financial model and help sustain member engagement, advocacy, training, and organizational operations.
The growth in overall expenditures was driven largely by increased project delivery and meeting and event costs. Meetings and events expenses rose to $479,304, while salaries and wages totalled $774,899 as the organization supported its broader program responsibilities. MNL also benefited from lower interest costs on long-term debt, which decreased to $138,415 from $165,561, and reduced travel expenditures. Maintaining careful oversight of event costs, project budgets, and administrative spending will remain essential to long-term sustainability.
MNL’s cash position improved considerably during 2025. Cash at year-end was $958,956, compared with combined cash and term deposits of $459,097 at the end of 2024. Cash generated from operating activities increased to $577,974 from $237,392. This improvement supports the organization’s ability to manage day-to-day operations and the timing of project funding and expenditures.
Accounts receivable remained relatively stable at $937,826, compared with $941,652 in 2024. Deferred income increased to $1,295,566, reflecting funding and membership revenue received in advance of recognition under MNL’s accounting policies. These balances highlight the continued importance of monitoring receivables, project commitments, and cash flow across multiple funding agreements.
Total assets increased to $4,567,632 from $4,204,423. Net assets rose to $615,327 from $601,187, reflecting the year’s positive financial result.
MNL continued to manage its financing obligations responsibly. Total callable debt declined from $2,302,074 to $2,227,386 during 2025, and interest costs were lower than in the previous year. The organization has subsequently renewed its debt financing, providing continuity for its financial planning and ongoing obligations.
Capital expenditures were minimal in 2025. The Board will continue to consider the organization’s property, financing commitments, and future capital requirements within a prudent, long-term financial framework.
The Board of Directors and Finance and Administration Committee remain committed to transparent reporting, sound financial controls, and careful oversight of both core operations and externally funded initiatives. As the volume and complexity of project activity increases, maintaining strong budgeting, financial reporting, and cash-flow monitoring practices will be especially important.
Looking ahead, MNL will continue to balance financial sustainability with its responsibility to deliver meaningful programs, services, events, and advocacy for members. The 2025 results provide a positive foundation: revenues and program activity have grown, cash flow has strengthened, and the organization has maintained an annual surplus. With continued diligence and thoughtful planning, MNL is positioned to build on this progress in support of municipalities throughout Newfoundland and Labrador.
I extend sincere thanks to the Finance and Administration Committee, the Board of Directors, MNL staff, and our financial and funding partners for their ongoing work and commitment to the organization.
