Budgeting 101- Frequently Asked Questions

How does the Township prepare its budget?

The Township of Muskoka Lakes offer services and programs (see diagram) through its Public Works, Emergency and Fire Services, Legislative Services, Development Services and Environmental Sustainability, and Financial Services Departments, as well as the Muskoka Lakes Public Library. Each department provides input into the Township budget based on a review of past spending and forecasting future costs. Each department works together to ensure that residents will enjoy either the same level of service and in some cases see enhanced services.

What is an Operating budget?

The Operating budget outlines the Township of Muskoka Lakes’ spending plan on services and programs for the upcoming year, and includes a forecast for the following two years based on the best available information. The Operating budget is informed by Council's goals and priorities as set out in the Township’s approved Strategic Plan. This budget identifies the cost of providing fire services, programs, facilities, parks, arenas, road maintenance, libraries and much more. These costs include staffing, utilities, repairs and maintenance, fuel, etc. The Operating budget also includes funds to be set aside in reserves (savings) to be used to fund future infrastructure rehabilitation or replacement (see Capital budget).

What is a Capital budget?

The Capital budget outlines the Township's plan for long-term infrastructure related work like road reconstruction, park improvements, fleet (i.e. fire trucks, snow plows), sidewalks and public buildings. These will provide or support services to residents in the future. The Capital budget also includes major periodic costs which are funded from reserves (e.g. municipal elections).

How are property assessments values set?

The Municipal Property Assessment Corporation (MPAC), is responsible for assessing and classifying more than five million properties in Ontario. Every year, MPAC provides the Township of Muskoka Lakes with an assessment roll to be used for taxation purposes. If you have questions about your assessment call MPAC at 1-866-296-6722 or visit the MPAC website.

How does Council decide on the budget?

A committee of Council (General/Finance Committee) dedicates a meeting to solely discuss the budget. Councillors review the budget and discuss their priorities and community input to make sure that the budget supports Council's vision for the upcoming year. Once Committee reaches consensus on the budget, it makes a recommendation to Council for its ratification and approval at a Council meeting.

If there is a surplus at the end of the year, where does the money go?

The Municipal Act requires that municipal budgets must be balanced. This provincial legislation allows municipalities to allocate any surplus money at the end of each fiscal year to reserve funds (savings accounts). The Township of Muskoka Lakes puts any surplus into Reserve Funds to pay for future infrastructure rehabilitation or replacement projects.