The budget proposes spending $10,698,208, of which $6,821,206 will be levied from ratepayers for operating expenses and $472,800 for capital projects for a total levy of almost $7.3 million.

The impact on ratepayers is an extra $22.83 per $100,000 in assessment or a total Gravenhurst tax bill of $333.40 based on a property assessed at $100,000. The tax increase was incorrectly stated in the Gravenhurst Weekender on April 4.

According to a report from town treasurer Ken Watson, the largest component of the operational budget is salaries and wages at $5,206,798, an increase of $523,000 over 2007 due to pay increases for management, non-union staff and council. This represents almost 49 per cent of the municipality’s total spending and approximately five per cent of the operational increase, including new one-time expenses such as the provincial Communities in Bloom competition, an economic strategy, branding exercise, new town website, boathouse expropriation costs, engineering for the archway and legal costs associated with the new official plan.

Replacing the town’s gateway arch at the south end represents the other two per cent of the tax increase.

Purchased services is the second largest factor in the budget at $1.27 million, followed by the servicing of the municipality’s long-term debt at $1,049,969.

By department, public works gets the biggest chunk of the levy at just over $2 million, an increase of more than $100,170 over last year’s budget. Nearly $1.5 million will be spent in the community services department, a reduction of $60,200.

Corporate services takes more than $1.3 million of the levy, an increase of almost $190,000 over 2007, while funds for the development services department dropped about $700,000 from last year to $771,510. The economic development department has been allocated an extra $106,500 for a total of $334,667 from the levy.

For every $333.40 in taxes, the greatest portion of a resident’s tax dollars ($81) is spent on roads and parking lot maintenance, followed by $34 for corporate services, and nearly $32 for parks and trails and the Muskoka Boat & Heritage Centre. Roughly $21 goes to the planning and the fire departments, respectively, while capital projects and community services and programs come in at around $18, respectively.

Just over $16 is to be spent on the library, while $13 is spent on economic development and $12.35 on cultural services.

Council gets about $11 of the tax bill, building inspections take $8.50, the Centennial Centre gets close to $8, and bylaw enforcement is a little more than $6.

The tax bill is augmented by the district’s budget, which increased four per cent. The impact on a residential property assessed at $100,000 is an additional $12.51 per year. The district portion of the tax bill will be $324.63 based on a $100,000 home, exclusive of the urban service and solid waste tax.

While municipalities are waiting for confirmation from the province of Ontario, the 2008 provincial budget suggests the education tax rate for residential properties will remain the same. The impact on a residential property in Gravenhurst assessed at $100,000 is $264 per year.