An increase in tax rates a consideration for the Township of Lake of Bays

The municipality is $25 million in debt

An increase to tax rates could be in the works for the Township of Lake of Bays, according to the 2026 Budget and Business Plan Framework and Timeframe summary presented to Council in the August 12, 2025, meeting.

Staff reported that property values based on 2016 assessments are “limiting the Townships ability to increase revenue through taxation.”

They added, “A 1% increase in residential tax rates would generate approximately $80,730 in additional revenue.”

While the Ministry of Municipal Affairs and Housing rated the Township as “low risk,” deeming it financially stable, it remains $25 million in debt with 25-year financing at current prime rates, indicated staff.

They added, “With inflation easing, interested rates are more favourable.”

Municipal funding sources, in addition to property tax, include user fees and services, government grants, reserves, investment income, and donations, reported staff.

They told Council that issues such as the US tariffs and conflicts in Asia continue to impact financial stability.

Strategic priorities will involve Economic Development, Active Living and Community Infrastructure, Environmental Stewardship, and Municipal Governance and Engagement, including the following:

• Planning initiatives will focus on attainable and affordable development, with specific attention on Baysville.
• Economic development will include business development and retention.
• Active Living and Community Infrastructure will concentrate on development in parks, open space and recreation.
• Environmental Stewardship will involve preservation, sustainability and biodiversity.
• Municipal Governance and Engagement will be attentive to transparency in administration and services.

The Strategic Plan Priority update will direct the priorities for the remainder of the 2023-2026 Council term, and will include operational, capital, and department budgets.

Councillor, Rick Brooks, said, “I really hope our constituents pay attention to what we are presenting… I believe it’s very open, honest, and transparent.”

He expressed appreciation about each department being responsible for their own section, reporting about their own priorities and projects – a transparency “not available at previous budgets.” He said, “This is very positive moving forward.”

Council adopted the proposed Budget and Business Plan framework and development schedule, and the 2026 Draft plan will be presented to Council later this year. Staff will report back with the annual budget to cover expenses for the fiscal year.