Barrie annexation funds reduce Oro‑Medonte tax hike for 2026

Oro‑Medonte council reduced the planned 2026 tax increase to 3.3% after cutting $350,000 from the capital levy, aided by an expected more-than-$10-million compensation from the City of Barrie for annexed land.

Oro‑Medonte Township council met to finalize the 2026 budget and cut about $350,000 from the capital levy after roughly two hours of discussion. That adjustment, together with an expected compensation payment from the City of Barrie, lowered the township's planned tax increase from 3.93% to 3.3% for 2026. The township expects to receive more than $10 million from Barrie for land annexed on Jan. 1, 2026, and the provincial government has committed $5.8 million toward ice‑storm recovery costs. Officials said the unplanned compensation funds will be directed to township reserves upon receipt to stabilize long‑term finances and asset needs. Key facts: - Council trimmed about $350,000 from the capital levy, resulting in a final 3.3% tax increase for 2026, equal to $33.71 more per $100,000 of assessment. - The township expects to receive more than $10 million from the City of Barrie as compensation for land annexed on Jan. 1. Barrie council authorized its mayor and clerk to execute compensation agreements. - The provincial government has committed $5.8 million of the township's $6.3 million ice‑storm recovery cost; the draft budget currently accounts for about 60% of anticipated recovery funding. - Township officials said any surplus created by these funds would be directed to reserves to support asset management and long‑term finances. - A presented breakdown showed every tax dollar is allocated roughly as follows: 35 cents to township operations, 30 cents to Simcoe County, 15 cents to school boards, 14 cents to Oro‑Medonte capital reserves, and 6 cents to the Ontario Provincial Police. Summary: The combination of the budget cut and anticipated Barrie compensation reduced the township's planned levy rise and is expected to improve year‑end variance, with excess funds directed to reserves upon receipt. Barrie council has approved the compensation framework and authorized execution of agreements for the land transfer. Remaining provincial ice‑storm recovery funds are expected in the second or third quarter of the year. Undetermined at this time.