Gravenhurst receives a summary of the 2025 Budget
Gravenhurst Council received a summary of the 2025 Budget in the November 27, 2024, meeting.
Director of Financial Services/Treasurer, Ross Jeffery, advised that the total gross expenditures is $29.5 million, with 39% going to staff costs at $11.5 million, 16% for reserves at $4.8 million, and 15% to long-term debt at $4.3 million.
Staff recommend a 4.5% tax increase, which Jeffery said is up 2.99% from last year, and 2.8% from the prior year.
He added that this will be followed by “a 3% tax levy increase annually from 2026 to 2034 in the contributors to the Community Reinvestment Reserve and Capital Reserves,” to help avoid debt from new projects.
He continued that the levy increase was 6.8%, however, 2.3% of that is for growth and assessment which resulted in the 4.5% increase in the tax rate.
Increases in staffing of the Fire, Infrastructure, and Recreation and Culture departments contributed to increases in the capital plan, resulting in the time equivalent of three full time positions, said Jeffrey.
However, there was no funding allocated for physician recruitment, healthcare initiatives for the healthcare hub, STR tracking and enforcement, and food cycle pilot program.
Regarding the Capital Multi-year Plan, the report indicated, “The Town has over $275 million in tangible capital assets, including roads, bridges, facilities, parks, trails, vehicles and equipment.”
Long-term capital goals will cost $11.5 million for 69 projects, announced Jeffery. He added that 53% is for core needs, such as roads, bridges, and storm water drainage, and it will increase to $13 million in 2028.
Top three expenditures in the capital budget are fleet at 15%, Fire at 11%, and parks at 8%.
Jeffery said, “Since 2020 the Town Capital Budget has almost doubled, and the 5-year plan average has increased by 65%.” He added, “The new plan of $11.5 million is a 15% increase from 2024.”
He advised, “Without continued tax levy support the capital program will need to be curtailed and refocused on health and safety needs versus quality-of-life needs.”
Councillor, Randy Johnston, suggested that this is “something to think about” when they have budget deliberations next month. He added, “There’s a growing trend across municipalities in Ontario about core services versus quality of life,” with a preference for the latter.
He urged Council to consider partnership funding for quality-of-life services, including community clubs and volunteers to help provide services the community wants “without increasing the taxes.”
Resident, Gord Dernon, spoke up in the public portion of the meeting about the budget, praising the Town for the work they’re doing to enhance quality of life. He said he’s seen the Town “change and develop and grow.” And added, “You are doing a lot of things right and we need to continue doing those,” because it encourages people to stay and want to retire in the area.
He continued that he also appreciated his recent tax bill with an increase of only $8 per month. He said, “Thank you very much. Keep up the good work.”
Budget deliberations will commence on December 10th and 11th for final approval and adoption.
