Bracebridge residents are getting their first detailed look at the Mayor’s proposed 2026 Budget and Business Plan, which includes a general tax rate increase of 4.9 per cent. The increase reflects a 7.2 per cent levy hike, partially offset by an estimated 2.3 per cent growth in taxable assessment. For a home assessed at $300,000, the projected tax impact is $1,832.38 in 2026, compared to $1,749.59 in 2025, representing an increase of $82.79.
The Town’s draft 2026 budget shows expenses exceeding revenues by $1,838,550. According to staff, this variance is tied to the planned use of reserves to smooth annual operating impacts, as well as the use of debenture proceeds to replenish reserves that temporarily financed the Muskoka Lumber Community Centre (MLCC) scope revision. Debenture funding will also assist with the Carnegie Library Reuse Transition Project. Town officials note that a single year’s surplus or deficit does not fully reflect long-term financial health, given the regular annual fluctuations caused by capital timing, reserve strategies, and unique one-time expenditures.
In 2025, the typical residential tax bill per $100,000 of assessment for properties on full urban services included $153 for School Boards, $710 for the District of Muskoka, and $597 for the Town of Bracebridge, resulting in a total bill of $1,460. For rural taxpayers, the typical bill per $100,000 of assessment included $153 for School Boards, $428 for the District, and $583 for the Town, for a total of $1,164.
A central theme in this year’s budget process is the Town’s ongoing strategy to gradually shift the operating costs of the Muskoka Lumber Community Centre onto the General Levy. In 2024, reserve contributions offsetting MLCC operating costs totaled $1,205,310. In 2025, this amount increased to $2,085,810. The Mayor’s proposed 2026 Budget reduces this support to $848,000, continuing the phased approach intended to balance taxpayer affordability with long-term financial sustainability.
Looking ahead to 2026, building activity is expected to experience a modest rebound from 2025’s slowed levels. Staff note that while economic conditions such as interest rates, trade dynamics, tariffs, and broader economic cooling will continue to play a role, local activity is being shaped by several ongoing developments. A large number of open building permits remains in circulation, with typical timelines from issuance to occupancy ranging from 1.5 to three years. Subdivision activity has slowed following the build-out of the Clearbrook Subdivision, though Phase 2 of the B4 Development Inc. project is expected to begin in mid-2026. Some townhouse developers are currently held back by unmet pre-sale thresholds. The 60-unit apartment building at 671 Muskoka Road 118 West appears to be moving forward, though progress on finalizing permits and development charge deferral agreements has been slow. At the same time, waterfront redevelopment remains steady, with several cottage demolition-and-rebuild projects underway. Construction of the new Rona store remains temporarily paused as ownership assesses the effects of ongoing trade issues with the United States. After a slower 2024, signs in 2025 have been more positive, with the McLaren Equipment project completed and construction on the new Winners continuing.
Council will consider potential amendments to the Mayor’s 2026 Budget at a Special Council Meeting scheduled for Tuesday, November 25, 2025 at 9 a.m. at the Municipal Office.
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[email protected]% and taxes up 21/2.× that! Slap in the face to the retired residents of this Town!
A disgraceful budget. The 5% tax increase is far above the rate of inflation. $2.7 million to renovate the library building for office space???!!! Why does the Planning department need to move into Lux quarters? Entitled? Bracebridge is the most heavily indebted municipality in Ontario. And they are borrowing money for this office renovation. $100 million borrowed money for one arena pad and a smaller library. $500,000 for a wooden gazebo in Memorial Park.. $100,000 for a tiny deck in the woods that no one uses. This is reckless spending. Out with all of them in 2026!