Council intends to approve a 2.24 per cent increase to Town portion of 2022 property tax

If Huntsville’s 2022 draft consolidated budget is approved by council this month, taxpayers will see a 2.24 per cent increase in the Town of Huntsville portion of their tax bill to pay for the municipality’s total proposed 2022 tax levy of 17,834,541 (an increase of $848,895 over 2021).

When combined with the anticipated District of Muskoka tax increase for 2022, the total property tax increase would translate to a $33 increase on a house assessed at $300,000—$26 from the Town and $7 from the District.

Education amounts are expected to remain status quo for 2022 and should not affect the tax rate.

When budget deliberations began in November 2021, a 3.2 per cent increase was proposed, an amount that councillors did not approve.

The rate increase was subsequently reduced to 2.98 per cent due to new information from MPAC (Municipal Property Assessment Corporation) that resulted in additional assessment growth in excess of $10 million.

It was then further reduced to 2.87 per cent by changes to the draft budget, primarily a shift in how affordable housing fee rebates are funded—moving that funding away from the municipal finance and planning departments to the STR MAT (short-term rental municipal accommodation tax) program resulted in a reduction of $16,840 (or 0.1 per cent) in the levy.

Councillors could have further reduced the Town’s overall tax levy increase to $715,146, or 1.48 per cent, had they agreed to all of the tax reduction options recommended by staff. While they approved two of the options—a freeze on the annual website reserve contribution (savings of $10,000) and a reduction in the amount of the Lakeland dividend transferred into the Town’s working funds reserve for 2022 ($100,000)—councillors rejected a reduction of $133,750 in its other contributions to the working funds reserve.

The end result of all of these changes is a proposed tax levy increase of 2.24 per cent for 2022.

Budget highlights for 2022 include:

• COVID Safe Restart funding from the province received in 2021 ($423,324). These funds are expected to be used in 2022. At the time of budget deliberations, staff assumed that Town services would return to pre-COVID levels in 2022.
• 2022 election costs, including an elections coordinator position to be funded through the election reserve fund ($163,500).
• One-time contribution to dedicated local share hospital reserve ($115,000) to be fully funded through the working funds reserve.
• Town Hall front steps brick work (estimated at $300,000).
• Port Sydney Hall flooring project with like-for-like replacement ($71,000).
• Wayfinding signage partial project in 2022 ($60,000) with further costs anticipated in future years. Funded via municipal accommodation tax.
• Increase in snow removal fees (approximately $17,000).
• New McCulley-Robertson pickleball courts ($312,000) to be funded through Ontario Winter Games 55+ legacy funds and parkland reserve funds.
• River Mill streetlight replacement ($80,000).
• Avery Beach boat launch and Centre St recreation trail paving and improvements ($100,000).
• Camp Kitchen retaining wall refurbishment ($50,000).
• Lakewood Park dock replacement ($35,000).
• New Hunters Bay docks ($25,000) to be funded through working funds reserve.
• New Vernon Shores docks ($30,000) to be funded through working funds reserve.
• Clarke Crescent (Port Sydney) multi-use courts ($260,000).
• Main Street Streetscape and Kent Park redevelopment project carry-over ($2,168,971). Funded through the Main St. Streetscape reserve.
• Further roads capital projects ($4.48 million).

Before the holiday break, the Town announced council’s intent to pass the 2022 draft consolidated budget at a special council meeting on January 10, which will be live-streamed here.

The 2022 draft consolidated budget, as discussed at the Dec. 15 general committee meeting, is available here. (Note that committee further reduced the budget as outlined in that report by $110,000 during the meeting.)

The District of Muskoka’s draft tax-supported budget will be available on its website after January 11, and is expected to be adopted at the Feb. 22 District council meeting once deliberation by its standing committees as well as District’s committee of the whole have occurred.

The District’s rate-supported budget—which affects user fees for solid waste and water and wastewater management—was adopted on Dec 20. District water and wastewater rates will increase by 1.6 per cent ($3.04 per month on a $300,000 assessment). The solid waste levy increased by 9.3 per cent, largely due to service level changes related to a new waste management strategy, but the impact on residents will vary by municipality due to differing assessment values. For Huntsville, the increase is $1.29 per month on a $300,000 assessment while Lake of Bays residents will see an increase of $0.61 per month.

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