Huntsville projects preliminary $428,000 year-round deficit for 2026

The upcoming split between Huntsville and Lake of Bays fire services has impacted the town's finances

Huntsville staff projected a preliminary $428,000 year-round deficit for 2026, in the May 27, 2026, General Meeting.

Staff reported that based on first-quarter information the projected deficit represents a 1.4 per cent variance and reflects several financial pressures affecting the municipality in 2026.

According to the report, one of the most significant pressures relates to reduced shared fire revenue following changes to the Lake of Bays Fire Services agreement. The Town is also facing higher-than-anticipated road maintenance costs, particularly in areas such as snow removal and street sweeping.

Building activity is another factor contributing to the projected shortfall. Staff reported lower building permit volumes and reduced fee revenue compared to budget expectations. The report indicates the Building Department reserve is projected to reach a negative balance of approximately $900,000 by year-end if current trends continue.

Despite those pressures, some factors are helping offset the deficit.

The report notes that Ontario Municipal Partnership Fund (OMPF) revenue is exceeding budget expectations and is providing partial relief against rising operational costs. Staff also indicated several budget areas continue to be monitored closely as spending and revenue patterns become clearer through the remainder of the year.

The financial update also provided a snapshot of the Town's capital program.

According to the report's capital highlights, approximately $3.53 million in capital projects were carried forward from 2025, while roughly $1.55 million has been deferred to future years. Staff advised that current capital forecasts show no net levy impact, with funding adjustments managed through reserves, grants and project timing changes.

The report notes that financial forecasting is an ongoing process and that early-year projections can change as operating conditions evolve.

Staff are expected to continue refining the forecast and return with updated financial information through second- and third-quarter budget reports later this year.

The Q1 report provides Council and residents with an early snapshot of the municipality's financial position and the budget pressures currently facing the Town.

Mayor, Nancy Alcock, said, “It is discouraging when you see the number.”

Alcock added that the Town is still in discussions with Lake of Bays Fire, so, “there still is room in there for what that dollar value will be.”

She continued that they also have significant building projects in the works which will “hopefully bring the curve back up.”

“I’m very hopeful that we’ll start seeing some numbers come back.”

Deputy Mayor, Dan Armour, agreed, and expressed he feels enthusiastic “and think that quarter 2 and quarter 3 will look way better than this one.”