Expanded transit costs falls to taxpayers in 2027

The expanded system will be paid for out of reserves in 2026 and moved to the tax levy in 2027

Huntsville Council agreed to plans to expand its transit services, in the July 28, 2025, meeting.

After conducting a review to evaluate the existing transit services for potential improvements, staff recommended proceeding with the Town’s Expansion and Optimization plan.

Council approved funding in 2026/2027 for the municipal portion of 2 new buses, with $85,000 of funding coming from the Transit Reserve, and $52,145 from the Town’s Capital Reserve. However, Director of Finance Services/Treasurer, Julia McKenzie, advised that they received a grant for the buses in 2019.

Staff recommended, “An estimated increase of approximately $351,000 be included in the proposed 2027 Mayor’s Budget from the levy for additional transit services.”

An agreement to partner with the District of Muskoka was also included in the plan to expand transit services into rural areas as a part of the District’s Demand Response Transit (DRT) “pending funding and future Council approval,” indicates the report.

Huntsville’s transit expansion will take place in three phases, which will include short-term improvements and long-term “sustainability, increased inclusivity, and regional transit integration,” adds the report.

Phase 1 involves route enhancements, including increasing the hours and improvements to bus stops and shelters, and expanding fleet to meet community growth.

Phase 2 will focus on rural integration, involving the collaboration with the District, who is seeking partnerships with area municipalities for their DRT.

Phase 3 will focus on accessibility and upgrades to infrastructure to support the enhancements.

Staff indicated that fare rates are expected to remain the same given that they are still comparable to nearby municipalities.

Councillor, Scott Morrison, expressed appreciation about the plan. He said, “It’s going to change our Town so much.” However, he added that he’s “not a fan of the impact on the 2026 levy.”

He said, “We made that commitment to the 2-year budget.”

Council amended the recommendation and authorized staff to proceed with the plan in the three phases “starting July 1, 2026, with the increase net cost in 2026 of $148,500 to be funded by the Working Funds Reserve and the full amount from the levy in 2027.”

Mayor, Nancy Alcock, expressed enthusiasm about the decision. She said, “We are finally making progress on transit.”

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