An 8% tax rate increase was proposed for Lake of Bays, in the December 10, 2024, Council meeting.

Director of Finance/Treasurer, Patricia Allen, outlined the proposed recommendations for the Township’s 2025 Draft Budget leading to the increase. She advised that they still have the second lowest tax rate increase so far, compared to area municipalities.

She indicated that Bracebridge is 9.5%, Huntsville 4.99%, Gravenhurst 5%, Muskoka Lakes 9%, Georgian Bay 11.61%, and the District of Muskoka 4.60%.

Mayor, Terry Glover, said that the Township doesn’t have the amount of infrastructure that the larger municipalities do, resulting in less borrowing, building and debt, which explains why their rates are less and the lowest increase in the District.

Allen continued that the Operating budget was projected at $11.7 million, and Capital was high, at $8.7 million, compared to $4.2 million last year. Reserves is $4.8 million, compared to $6.2 million last year. She explained there is less this year because money was taken out from projects they’ve been saving for.

She also provided a breakdown of department budgets, which raised concerns from Council.

For instance, shared Fire Department costs with Huntsville at $500,000 was an issue because they haven’t seen a report to justify the rate proposed by Huntsville staff.

Chief, Gary Monohan, explained, “Nothing has been done for years” regarding purchasing apparatus and other department costs. He added “things changed,” such as needing more staff and other areas that have caused a “huge jump.”

Glover said, “That’s a lot of money to say ‘yes’ to,” without being informed and consulted on it, which is required for them to make a decision.

Council also expressed concern about projections for the Roads Department, considering that there hasn’t been a Roads Need Study to guide them about the work that needs to be done.

Glover expressed, “We need a Roads Needs Study before we can pass the budget.”

Councillor, Rick Brooks, emphasized that the Roads Department is the biggest item in the budget. He said, “I’m having a problem approving $4.051 million.”

He added that he also can’t support other costs, such as $1.5 million for highway 117, without the study and a detailed breakdown.

Council members concurred that they need a more detailed report with a cost breakdown before agreeing to this proposed cost.

They directed staff to get the study completed and to provide more detailed reports for the upcoming meeting in January, which will help them come to final decisions about the draft budget.