Town of Gravenhurst staff project 7% tax levy increase for 2026 Budget so far

The town is citing rising costs and inflation for the increase

Gravenhurst staff projected a 7% tax levy increase for the 2026 Budget, in the August 12^th, 2025, meeting.

They reported an 8% increase, however, indicated an offset Increase in Assessment of -1%, which lowered it to 7%.

The report came from a request by Mayor, Heidi Lorenz, last June directing staff to research and advise Council in preparation for the 2026 Operating and Capital Budgets.

According to the staff report, directives include identified budget pressures from areas like government legislation, the Town’s Strategic Plan and priorities, potential funding opportunities, the tax impact guideline, and a schedule for the budget meeting and public engagement.

It adds that the Consumer Price Index (CPI) at 1.9% in June, and Non-Residential Building Construction Index with a 4.2% increase in the second quarter are key factors that will influence the budget.

It continues, “These factors are anticipated to contribute to already escalating budgetary pressures.”

Staff also reported a 4.5% increase to the Town’s capital reserves, above the previous 1.0% to 3.5% between 2021-2024, however, “given the ongoing increases in construction costs and internal borrowing costs, continued and increased support from the tax levy will be necessary.”

They indicate that other factors include a challenging economy, including inflation, operating costs, climate change adaptation and extreme weather event management, and staff costs.

Director of Finance Services/Treasurer, Wayne Campbell, said, “The report is not set.”

Staff broke down the budget dates, with the Fees and Charges report to be presented for Council’s approval on September 16^th, Mayor’s Budget to be posted on the Town’s site on November 7^th, the Mayor proposed Budget and Public Meeting on November 26^th, and staff presentations, Council amendments and Mayoral Veto and Council override/Budget adoption on December 9^th to 10^th.

Staff expressed commitment to “identifying efficiencies over the next months to prevent tax burdens to residents.”