Municipal budget adopted for 2026

Mayor Heidi Lorenz’s municipal budget for 2026 was passed earlier today.

Developed under Ontario’s new ‘Strong Mayor’ framework, Mayor Lorenz consulted with community partners, council and staff during the year to create a budget that addresses Gravenhurst’s needs. 

The budget sets out a clear financial plan for the year ahead, one that will maintain high-quality service levels, invest in key infrastructure projects, and set aside money for future initiatives that will benefit the community. 

“This budget is reflective of our commitment to delivering strong, reliable services while focused on affordability for our residents. We are investing where it matters most to ensure that Gravenhurst can continue to grow and thrive in a sustainable manner,” Mayor Lorenz said. 

Scott Lucas, chief administrative officer, said staff have collaborated diligently with Mayor Lorenz to develop a budget that best meets the operating and capital needs of the municipality. 

“In the town’s strategic plan, which council adopted in 2023, we speak to the importance of planning for both current and future needs, and the budget is the financial tool we use to do that. Staff are ready to advance a variety of projects in 2026 that will contribute to the overall well-being of our community,” Lucas said.

Wayne Campbell, Gravenhurst’s director of financial services, said the budget charts a responsible course for the municipality. 

“This budget will allow staff to move forward with the implementation of council’s goals and other operational plans for 2026 while also setting aside reserve funds for future projects,” Campbell said. 

What does it all mean to taxpayers? 

The 2026 budget means a tax rate increase of 6.87 per cent. 

Based on the 2026 budget, the town portion of the property tax bill will increase by approximately $40.10 per $100,000 of assessment.

This represents the amount required to support municipal services such as winter maintenance, fire and emergency response, parks and recreation, library services, community facilities, and administrative and regulatory services.

However, a property tax bill includes three components:

1.    Town of Gravenhurst

2.    District of Muskoka

3.    School Board

The district and school board set their rates independently, and these rates are not controlled by the town.

When the current estimated levies for all three portions are combined, the total estimated impact on a residential property tax bill is:

• Urban residential property: $72 per $100,000 – a 5.5 per cent increase
• Rural residential: $60 per $100,000 – a 5.3 per cent increase

About the operating budget

The operating budget for the town is $31.4-million and continues to fund the core services residents rely on, including road maintenance, fire and emergency services, parks and recreation, library services, by-law enforcement, planning, governance, and customer service.

Key drivers influencing the operating budget

The 2026 operating budget is shaped by:

• Establishment of a Winter Control Reserve to support long-term cost stability
• Commitment to evolving asset management needs and climate change adaptation and mitigation
• The need to maintain service levels and ensure organizational capacity now and into the future
• Labour-related adjustments arising from collective agreements
• Inflationary cost pressures and changes in development trends
• Council approved plans and policies (e.g. Service Delivery Review)

To remain within the tax impact guideline, staffing growth was contained and reserve contributions were phased to balance affordability with long-term funding sustainability.

About the capital budget 

The capital budget for the town is $13.7-million and focuses on core infrastructure renewal, including road rehabilitation, stormwater improvements, parks and waterfront enhancements, facility maintenance and accessibility upgrades, vehicle and equipment lifecycle replacement, and continued modernization of technology and digital services.

These investments are guided by various strategic planning documents, including the town’s Asset Management Plan and a multi-year capital plan that aligns renewal needs with reserve strategies and future funding opportunities.

There is a total of 53 capital projects in the 2026 budget. 

Capital investments include, but aren’t limited to, the following projects:

• upgrades to major drainage systems on Musquash Road
• rehabilitation of North Kahshe Lake Road
• rehabilitation of Peninsula Road and replacement of guide rails
• sidewalk replacement and streetlight upgrades in various areas
• gravel road upgrades in various areas
• the replacement of Wharf Docks
• fire watercraft vessel – for transporting firefighters and equipment
• self-contained breathing apparatus – for firefighters
• the purchase of a new tractor with blower
• upgrades to sound and lighting equipment at the Gravenhurst Opera House
• Gravenhurst Opera House 125th anniversary celebrations
• the replacement of the accessible pedestrian ramp at the Seniors Centre
• town-wide upgrades to information technology systems to improve efficiency and customer service
• 2026 municipal election
• Initiation of a new Official Plan, which is the guiding land use document for the town

Additional resources

Watch today’s budget meeting.

Review the 2026 budget.