4.85% tax increase adopted for District of Muskoka’s 2025 Draft Budget
A 4.85% tax rate increase was adopted for the District of Muskoka’s 2025 Draft Budget, in the January 10, 2025, meeting.
In the overview, Commissioner of Finance and Corporate Services, Suzanne Olimer, said the increase will be equivalent to $15.69 on a property assessed at $100,000.
The increase for 2026 is estimated at 3.9% or $13.34 for a property assessed at $100,000.
The 2025 net levy increase is estimated at $6.4 million, $108.7 million for the Capital Budget, and $41.3 million for Net Contributions to Reserves.
The numbers are subject to change due to debate about whether a Tax Stabilization Reserve will be used.
Council debated about using $500,000 from the reserve to help compensate for unusual circumstances, such as the increase OPP costs during significant events like the recent storms.
Staff advised that if they included the $500,000 for one year the rates would drop by .5%, to a 4.33% tax rate, and $14.01 for a property assessed at $100,000. However, they would have to make up the difference next year to a 4.9% or $16.68 increase.
Considerations discussed included the cost of living or “affordability crisis,” inflation increases, and impact of provincial “downloading.”
The cost breakdown included increases of $5.85 for base services to cover inflation and contracting, $4.64 for affordable and attainable housing, $3.00 for increased reserve contributions, $1.04 for local share and health care facilities, and $0.50 for service level changes.
2026 increases include 3.61% for inflation and contracting for base services, $2.78 for affordable housing, $3.97 for reserve contributions, $1.04 for local share and health care facilities, and $0.11 for service level changes.
Olimer added that the three priorities of the District are affordable housing (including long-term care), roads, and paramedic services.
Council agreed to make time for further discussion about whether they will agree to use the tax reserve to reduce rates in next week’s meeting when they approve the final budget.
