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The Township of Muskoka Lakes has adopted the 2026 Municipal Budget, the first to be introduced as the Mayor’s Budget under Part VI.1 of the Municipal Act, 2001.
The Township’s budget has been developed with a commitment to ensure the maintenance of existing levels of service while also building for the future by investing in infrastructure renewal, and community services.
The approved 2026 Municipal Budget includes an 8.6 per cent municipal tax rate increase, which translates to approximately $13.85 more per $100,000 of assessed residential property value on the municipal portion of the tax bill.
Read the official notice 2026 Budget Breakdown (infographic)
The Treasury Department is responsible for all accounting services for the corporation including the collection of property taxes, the payment of bills for all department purchases of good and services, payroll and personnel records, invoicing and collection of general fees.
In addition, Treasury manages the cash and investments of the Township. This includes the general bank accounts as well as funds of the Financial Reserves.
Every year the Township develops and adopts a Budget to guide activities and expenditures, and establish the amount of revenue required to fund these.
To view previous budgets, please visit our Document Centre
To view previous Tax Rates, please visit our Document Centre
To view previous Audited Financial Statements, please visit our Document Centre
To view previous Records of Salaries and Benefits, please visit our Document Centre
Under the Municipal Act, 2001, every municipality must adopt a balanced budget annually. The total taxes collected (tax levy) is the shortfall of the operating and capital expenses (including amounts contributed to reserves funds) less the amount of revenue that will be received from other sources, such as user fees, interest earned on investments and grants (including amounts taken from reserve funds).
How much is the Township raising taxes this year?
Taxes are calculated based on assessment value and the tax rate. The assessment value used for taxation, as determined by the Municipal Property Assessment Corporation (MPAC), was valued in 2016. The Township’s tax rate increase for 2025 will be 8.9% or $1.32 per 1,000 of assessment. It should be noted that the Township share of the total tax bill is less than 25%, with the remainder supporting the District of Muskoka, and the Province (School Boards).
What is causing the approved increase?
The Township is continuing its commitment to funding capital renewal through a $6 million investment from the 2025 tax levy. This capital funding investment is used to address the needs of the Township’s aging infrastructure, including over 350 kilometers of roads, and several facilities including 13 community centres, 10 fire halls, 2 arenas, 3 public works yards, the Muskoka Lakes Public Library, the Brock and Willa Wellness Centre, the Township Office and ancillary facilities. This investment accounts for over half of the tax increase in 2025.
What is the money being used for?
In addition to the contribution to capital reserve funds, the tax levy is used to maintain the delivery of services including road maintenance and snow removal, emergency fire services, upkeep of parks, trails, cemeteries as well as community centers and arenas. The Township also supports the community through its grants program, providing operating grants to the Muskoka Lakes Public Library and community libraries, providing free space for the West Muskoka Food Bank in Glen Orchard and the Cottage Country Family Health Team housed at the Brock and Willa Wellness Centre (Community Health Hub).
Did you seek public input on the 2025 budget?
The Township values input from residents in establishing budget priorities and encourages public participation. A public survey was launched in early summer on engagemuskokalakes.ca to receive public input before the budget was developed. A hybrid (in-person/remote) public meeting was also held in late September prior to the start of deliberations to hear from the public. Public input is welcome any time during the budget cycle to assist Council with ensuring the budget is addressing the things that matter most to residents.
Are there other revenue sources the Township is accessing besides taxation?
The Township continues to look for funding opportunities from grants that support municipal priorities from other levels of government, not-for-profit and private organizations. Successful grant applications during the year decrease the reliance on the Township’s tax levy and capital reserve funds for funding. The Township also reviews all user fees and charges for the provision of specific services, licensing and administrative monetary penalties (AMPs) related to by-law infractions as approved under municipal by-law.
Does this mean my road will get done this year?
The Township has a significant backlog of capital infrastructure projects. In 2025, the Township will be updating a roads needs study (2022) and traffic counts (2013) to assess condition and volumes. Using an evidence-based approach, Staff will recommend to Council the roads in the worst need when preparing the annual budget.
Delivering sustainable public services was identified as a priority for Council in the most recent Strategic Plan. Over 50% of the current year tax levy increase is due to the investment in capital reserve funds. The infrastructure funding gap continues to be an issue that Council has made great strides to address in the budget over the past two years. In 2025, Council will define future levels of service and a long-term financing plan as legislated by the province. That plan, along with an updated Reserve and Reserve Fund policy, will guide the level of funding required from property taxes to support municipal services.
Contact Us
Township of Muskoka Lakes
1 Bailey St., P.O. Box 129,
Port Carling, ON, P0B 1J0
T: 705-765-3156 F: 705-765-6755
communications@muskokalakes.ca
Office Hours: 8:15 a.m. to 4:00 p.m.
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