Lake of Bays reports a deficit of approximately $2.16 million in first quarter

The municipality says expenses are below budget, and its too early to determine if they will remain in deficit at the end of the fiscal year

Lake of Bays staff reported a deficit of approximately $2.16 million for the first quarter of its 2026 budget, in the June 2, 2026, Council meeting.

Council received the Municipal Budget and Business Plan Update Report for the three months ending March 31, 2026, which included a summary of operating expenditures and revenues across Township departments and services.

According to the operating summary, the finance department is forecasting a deficit of $2,155,806.

The report notes that net operating expenses are currently favourable to budget by 79 per cent, while capital spending is favourable to budget by 74 per cent.

Staff explained that the favourable variances are largely due to the timing of municipal projects and expenditures, with many costs typically occurring later in the year. Capital spending, in particular, is expected to increase as the construction season progresses.

The report provides Council with regular updates on the Township's financial position, operating expenditures and progress on business plan initiatives.

Staff noted that ongoing financial reporting helps identify budget variances, track municipal programs and projects, and provide transparency to both Council and the public.

A condensed operating summary included expenditures for services such as corporate services, finance, fire protection, public works, parks and facilities, planning, economic development and libraries.

Councillor, Robert Lacroix, said, “It’s way too early to say whether or not we’re in a deficit or not.” 

He also highlighted that the report indicated the financial budget for last year, however, doesn’t include whether there was a deficit or surplus, which he wanted confirmation about.

Staff said they would have to seek that information and get back to Council with an answer.