Lake of Bays comes in with a lower tax increase than anticipated

Council was originally projecting a 5.56% increase, but directed staff to way ways to lower the tax impact

Lake of Bays reduces proposed tax rate increase to 4.2%, in the December 9, 2025, meeting.

The Second Draft 2026 Lake of Bays Budget and Business Plan Update, presented to Council, outlines the Township's revised financial direction following initial budget discussions at the November 11th council meeting, where staff were instructed to reduce the previously proposed 5.56% tax increase.

As a result, staff indicated that they adjusted operating expenses and incorporated updated provincial funding information to deliver a more manageable tax rate increase of 4.272% for 2026.

“Average property value at $300,000 at 2025 tax rate provides $674.77,” reported staff. They added, the 2026 tax rate increase “provides $703.60, an increase of $28.83 per year, $2.40 per month.”

Staff indicated that the update reflects a balanced approach designed to meet service delivery expectations while recognizing economic pressures facing residents.

They explained that a key factor influencing the revised tax rate is the recently announced changes to the Ontario Municipal Partnership Fund (OMPF), which provides financial support to municipalities. And by reevaluating planned expenses and revenue, the Township is able to achieve a balanced budget without sacrificing services.

According to the staff report, strategic priorities associated with the budget include maintaining strong municipal governance and community engagement, ensuring that financial decisions remain transparent and align with community needs.

Council adopted the Second Draft Budget, which emphasizes that ongoing financial monitoring throughout 2026 will ensure spending aligns with real-time conditions and supports fiscal responsibility, operational stability, and long-term planning.

Council members praised the reduction in the originally proposed tax rate and commended staff for their efforts.

Councillor, Nancy Taply, expressed the rate as a great “value for your money.” She said, “You can’t buy Starbucks for $2.40 a month.”

Councillor, Rick Brooks, suggested that staff make the financial changes transparent to the public “to show them how the numbers were brought down.”

Staff said they will provide a link on the Township website for the proposed budget drafts which contains that information.

Mayor, Terry Glover, said he was “pleased the way we proceeded,” deeming the rate “one of the lowest in Muskoka.”

“I’d be surprised if anyone can touch us,” he continued.

He also explained that one quarter of the money goes to the Township, half goes to the District, and another quarter goes to education.