Huntsville overspends on capital projects by $2.6 million

The additional cost were spread over roads, fleet, parks, fire and IT

Huntsville staff reported a $2.6 million higher capital project variance than anticipated, in the July 28, 2025, Council meeting.

In their Capital Project Update, they included their quarterly forecast report, which summarized projects resulting as “higher than the budgeted amount.”

According to their report, “Overall it is expected by staff that the capital projects will be approximately $2.6 million higher than anticipated primarily due to several projects being carried forward from 2024 and in year additional projects added in Parks and Fleet.”

Some of the department variances (additional costs) include, Fleet, with an additional $1,541,000 to the budget, Roads $314,000, Parks and Cemeteries $319,350, Fire and Emergency $266,461, and IT $121,500.

Staff also presented a $60,000 budget increase for the Muskoka Heritage Place (MHP) Locomotive Boiler Project. They indicated that the increase in the locomotive project will bring the total 2-year project cost up to $220,000.

According to the staff report, the increase for this project will be funded through donations the Town has received or anticipate for the project, such as $20,000 donation coming from the Huntsville and Lake of Bays Railway Society (HLBRS), along with funds from the MHP Hartley Bequest Reserve.

It adds that staff are still waiting for confirmation for the final contribution from the Hartley Estate, however, the HLBRS has committed to fundraising initiatives to help cover the potential shortage.

It continues that remaining fund needs will come from the MHP Capital Replacement Reserve.

So far, progress for the locomotive project includes closing the Request for Tender last May, with only 1 bid received at $174,000. Plus, site work for the project is estimated at $46,000. The anticipated completion of the engine boiler is by 2027 or 2028.

Staff also recommended that the Town advance the start date of the MHP Maw House Roof Project. They requested the project begin this year instead of the planned 2027 schedule because of current issues with the roof.

They indicated that issues are happening earlier than they expected. However, the advanced project comes “with no change to the forecasted cost of the project.”

Staff estimated the cost of the roof issues at $10,500, which will be funded through the MHP Capital Replacement Reserve.

Council approved the staff recommendations for the locomotive cost increase and to advance the MHP roof project, and they accepted the capital projects variance update for information.

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