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Photo by the Gravenhurst BIA.

Gravenhurst draft budget predicts a 5.5% tax hike

The Town of Gravenhurst has released its 2026 draft budget, developed within an established guideline and designed to maintain service levels, support key infrastructure renewal, and sustain long-term financial stability under the Strong Mayor Budget Framework.

Residents can see the draft budget and learn more about the budget process on Engage Gravenhurst.

“Now is the time for residents to review the draft budget and share their thoughts on it,” Mayor Heidi Lorenz said. “This draft budget reflects my commitment to sound financial management while continuing to invest in the services and infrastructure that we rely on every day.” 

Questions and comments about the draft budget can be made through Engage Gravenhurst or through council and staff. Residents can also ask questions and make comments at an upcoming budget public meeting. 

Scott Lucas, chief administrative officer, said staff are ready to implement the budget once it receives final approval. 

“Our team has worked closely with Mayor Lorenz to develop the budget. The intent is to keep our community moving ahead – maintaining essential services, planning for growth, and being mindful of affordability,” Lucas said. 

About the draft operating budget

The draft 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 draft operating budget

 The 2026 operating budget is shaped by:

  • Establishment of a Winter Control Reserve to support long-term cost stability
  • 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 
  • Council approved plans and policies (e.g. Service Delivery Review)

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

During budget deliberation, the mayor and council will have the opportunity to consider several items which may influence the final operating budget, including:

  • New initiatives arising from the strategic plan
  • Items not currently reflected in the draft budget
  • Emerging priorities identified through public input

These items may be added, removed, or deferred during the budget review process.

About the draft Capital Budget 

The draft 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 service capacity.

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

What does it all mean to taxpayers?

Based on the proposed draft 2026 budget, the town portion of the property tax bill is projected to 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

Important next steps

Wednesday, Nov. 26 – The draft budget will officially be presented to council at 1 p.m. in the council chambers.

The public is welcome to attend the meeting or watch online. 

At the meeting, members of the public will have the opportunity to share their thoughts about the draft budget. Virtual participation is an option for people who can’t physically be there. See the budget page on Engage Gravenhurst for details about participating electronically.

Questions and comments about the budget can also be made through our budget page on Engage Gravenhurst or by e-mailing Wayne Campbell, director of financial services and treasurer, at [email protected].

Tuesday, Dec. 9 – Budget deliberations begin in the council chambers, starting at 9 a.m.

The meeting will include a review of departmental operating budgets, as well as a review of the capital budget and multi-year plan. 

At the meeting, council will consider approving the budget. 

If required, a second meeting will take place at 9 a.m. on Wednesday, Dec. 10. 

The public is welcome to attend or watch online. 

How to watch meetings online

See Gravenhurst.ca.

Additional resources

Review the draft 2026 budget.

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One Comment

  1. Barney O'Hara says:

    How nice for the Town of Gravenhurst to increase property tax on what is already overpriced real estate. I read it’s 5.5%, which doesn’t jive with the actual, but anyway, my questions here are:

    When will I get and how soon will I get this “adjusted for inflation” increase on my senior pension that is “geared to inflation”? Or, are the so called “gears” in the formula and the inflation we are all suffering under just another case of grand larceny and fraud over $1000.00 according to the Criminal Code of Canada?

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