Councillors signed off on the increases Monday during the adoption of the final draft of the municipality’s 2008 operating and capital budgets.

The municipality’s gross expenditures for this year total approximately $98 million. The largest portion of costs can be attributed to Muskoka’s roads construction and maintenance requirements, followed by its emergency services operations, such as police and ambulance. After revenues and grants, Muskoka’s net levy sits at approximately $54.6 million, an almost 6 per cent increase over last year.

After assessment growth, the tax rate increase will translate into a 4 per cent hike, or an additional $25 a year for a home assessed at $200,000. A portion of each homeowner’s increase, approximately 1.5 per cent, will be used to help pay down Muskoka’s $16 million debt for the Pines Long-Term Care Residence in Bracebridge.

The forecasted increase in solid waste costs, which can be largely attributed to Muskoka’s new kitchen organics program, amounts to an approximately 6.3 per cent increase over 2007. The new program is slated to start in May. It will offer curbside collection of compost waste to urban areas of Bracebridge, Gravenhurst and Huntsville.

The environmental initiative added approximately $450,000 to Muskoka’s solid waste budget this year.

Depending on the municipality, the additional costs will translate in an approximate 4 per cent increase in solid waste for a home assessed at $200,000.

Currently, solid waste costs vary across Muskoka, depending on the services used in each municipality and the amount of waste it generates. Costs for garbage pickup for homeowners in Huntsville, for example, are higher than in Lake of Bays because Huntsville’s population would generate more waste and receive more curbside collection, the most expensive service.

Lake of Bays, meanwhile, has fewer residents, many of which use waste transfer stations, a less expensive option where residents drop off their garbage.

The average homeowner in Huntsville will therefore see the solid waste portion of their tax bill increase 4.2 per cent, from approximately $141 to approximately $148 this year. In Lake of Bays, the average homeowner will see their costs jump 4.5 per cent, from approximately $46 to $48.

In Bracebridge, solid waste costs are forecasted to increase on average by 4.1 per cent, or from $151 to $158.

Gravenhurst residents will see a 4.7 per cent increase, going from $141 to almost $148.

This current funding methodology, which is also based partially on assessment, has been criticized by some who note that those with higher assessments will pay more for the same garbage collection services. Others point out that while only Bracebridge, Gravenhurst and Huntsville will be offered compost collection service this spring, all municipalities will contribute to the program’s cost.

District councillors have been investigating ways to address the issue by changing how solid waste costs are allocated to each area municipality. One change considered was making each municipality pay the direct cost of managing their waste. This would have seen municipalities like Lake of Bays pay the actual cost of hauling waste to the township’s transfer stations, substantially increasing homeowners’ costs. Currently, hauling costs for waste are paid through the district’s global budget.

By Monday, however, councillors were unable to agree upon a new funding formula. They opted instead to maintain the current funding system for this year. Several councillors suggested refocusing Muskoka’s efforts on waste diversion, as opposed to how solid waste costs are financed.

“The financial aspect of this is not the only challenge facing the district,” said Lake of Bays councillor Margaret Casey. “Each of us should be more responsible for our own (waste) contributions.”

Bracebridge councillor Graydon Smith said he would like to see Muskoka continue to discuss the implementation of a “bag tag” system, where residents pay an individual fee for each bag of garbage they throw away. The system, which is used by some municipalities in the GTA, is seen to encourage more waste diversion.

“I’d like to see those discussions continue,” said Smith.

Smith’s and others’ recommendations on distributing this year’s solid waste cost increases will appear before council for final consideration later this month.