Huntsville forecasting $565,000 year-end operating deficit

The town is also forecasting about $602,000 in capital projects above the 2026 budget

Staff forecasted a year-end operating deficit of approximately $565,000 in the Town's 2026 third-quarter financial forecast, in the September 30, 2026, Council meeting.

They indicated that the Q3 forecast represents an overall variance of 1.8 per cent of the Town's approximately $30 million in operating expenditures, or 2.2 per cent of its $25.8 million net levy.

According to the staff report, the largest individual pressure identified is a roughly $326,000 deficit in Home, Property and Planning. Staff attributed this mainly to an adjustment in shared-services revenue for Huntsville/Lake of Bays Fire, lower planning revenues, and lower than anticipated supplementary tax revenues.

Roads, Sidewalks and Transit is forecasting a deficit of approximately $234,000. Staff attribute much of this to a significant reduction in the budget for aggregate resources revenues, along with increased snow removal costs resulting from frequent weather events, temporary equipment unavailability and necessary winter sand use.

Staff are also forecasting a deficit of approximately $30,000, largely resulting from reduced Lakeland Holdings Ltd. dividends, partially offset by additional Ontario Municipal Partnership Fund grant funding.

Other areas are expected to help offset some of the shortfall. Recreation and Facilities is forecasting a surplus of approximately $66,000, related in part to increased recreation and leisure program registration revenues and facility revenues. Economic Development is forecasting a surplus of approximately $27,000 due to additional Administrative Monetary Penalty revenues.

Culture and Events is forecasting a deficit of approximately $68,000, although the report notes significant revenue increases at the Algonquin Theatre and Muskoka Heritage Place.

The report adds that capital projects are currently forecast to exceed the 2026 budget by approximately $602,000.

Staff noted the forecast is based on information available in early September and will continue to be refined as year-end approaches.

Deputy Mayor, Dan Armour, noted the projected deficit has increased since the first-quarter forecast and questioned what measures have been taken to offset the growing shortfall.

Staff indicated the Town has pursued funding applications and cut back where possible, while noting that “a lot of lost revenues are estimates at this point.”