The City of Terrace said it remains in a stronger financial position than many municipalities across northwest B.C. after council reviewed its draft 2025 financial statements last Monday.
According to the draft statements, Terrace finished 2025 with net financial assets of $58.3 million, up from $44.1 million the previous year. The city’s cash and short-term investments also increased to roughly $78.5 million.
City staff said much of the increase came from receiving $20.7 million from the Province of B.C. through the Northwest Regional Funding Agreement.
The city reported total revenues of approximately $60 million in 2025, while expenses totalled about $38.4 million, resulting in an annual surplus of $21.6 million.
During discussion, Terrace Mayor Sean Bujtas said Terrace remains in a relatively strong position compared to many other communities dealing with aging infrastructure and debt pressures.
Bujtas said many municipalities have limited borrowing capacity because of accumulated debt, while Terrace has maintained financial flexibility despite economic challenges over the years, including mill closures and taxation losses.
The city’s auditor, Steve Kietzmann with Doane Grant Thornton LLP, said Terrace has financial flexibility that many other municipalities in the northwest do not.
“The thing is, the city of Terrace has options. A lot of other municipalities in the northwest don’t. And that’s an enviable position to be in,” Kietzmann said
Kietzmann said although the city is holding significant cash reserves, much of the money is already committed toward reserve funds, future infrastructure projects and liabilities.
The financial statements show approximately $52 million is currently held in reserves for future purposes, while additional funds are tied to liabilities and projects including the Skeena Industrial Development Park joint venture and landfill closure obligations.
Council also discussed the city’s long-term financial strategy, including the continued use of a one per cent asset management tax that helps fund future infrastructure replacement and capital projects.
