District shifts funding for major water and sewer projects

District of Muskoka approved funding changes for major water and sewer projects, shifting nearly 6.9-million dollars in provincial funding

District of Muskoka Council approved staff request to shift its financing for major water and sewer projects during its August 20 meeting.

The budget amendments were for the Scott Street watermain replacement and Hodges Lane sewage pumping station upgrade.

Staff reported that the Scott Street watermain project will receive an additional $335,000, increasing its budget from $399,000 to $734,000.

However, the amendment does not increase overall spending within the affected water capital budgets. The additional $335,000 is being transferred from the District's 2026 water replacements and upgrades budget, reducing that budget from approximately $5.81 million to $5.48 million.

Combined expenditures for the two water capital budget items remain approximately $6.21 million.

A separate amendment changes how the $6.88-million Hodges Lane sewage pumping station upgrade will be financed.

The report adds that the project had previously been expected to rely on approximately $6.88 million in wastewater development charges. Instead, the District will use $6.883 million from the Ontario Community Infrastructure Fund (OCIF).

The project's total budget remains unchanged at approximately $6.88 million, meaning the amendment changes the source of financing rather than increasing the cost of the work.

An additional $261 is being provided through the Environmental Reserve Fund, bringing total project financing to $6,883,261.

The change means provincial infrastructure funding will cover virtually the entire Hodges Lane project instead of the previously budgeted wastewater development charges.

Both amendments are part of the District's 2026 Rate Supported Capital Budget and Forecast, which covers infrastructure financed through water and wastewater systems rather than the general tax-supported budget.

The Scott Street amendment reallocates existing water capital funding to accommodate the higher project budget, while the Hodges Lane amendment allows the District to substitute provincial funding for money that had been allocated from development charges.

Council approved both amendments as part of the August 20 budget changes.