Minden Hills taxpayers will begin contributing to an infrastructure levy, as the township moves towards an infrastructure renewal reserve.

Director of finance, Greg Bedard, broke it down for the public, and council, at an April 25 meeting.

Council has endorsed a compounding one per cent levy to be included in the 2025 levy and subsequent years’ operating budgets as contribution to the reserve.

Bedard said, “it is widely known municipalities across Ontario struggle with funding to keep their assets in a state of good repair. The Financial Accountability Office of Ontario estimated the municipal infrastructure backlog, as of 2020, to be about $52 billion. This represents the cost of bringing assets to a state of good repair, but where funding does not exist to do so.”

The director said that to combat the backlog, many municipalities have adopted an infrastructure levy.

“This levy represents funding to be used in the short-term and long-term to move forward planned and unplanned infrastructure projects where funding does not otherwise exist.” He added the intent is for the levy to be compounding. In other words, the existing infrastructure levy would form part of the next year’s base budget, with a new infrastructure levy calculated in addition to the tax levy, and so on, for each subsequent year.

Bedard said once the township gets its updated asset management plan later this year, it will have a better understanding of its backlog. However, he said the discrepancy was noted during budget decisions. On March 26, council approved the new levy. It represents one per cent of the township’s annual tax levy requirement. In 2024, it is $110,000.

Bedard stressed the levy does not mean the township should stop contributing to other reserves.

“However, balancing financial planning and taxpayer affordability often results in reserve balances that are underfunded. An infrastructure renewal reserve provides the opportunity to fund projects where existing specific purpose reserve balances are inadequate,” he said.

He added the availability of uncommitted funding in an infrastructure renewal reserve may increase the township’s ability to take advantage of grant funding programs.

“Programs that may benefit the township are often announced with immediate and short application timelines, during which the township must commit to funding its share of the project. The availability of funding in an infrastructure renewal reserve may allow the township to pursue these programs and stretch the township’s dollar further without impacting the tax levy, reprioritizing planned projects, or the planned use of specific or departmental reserves,” Bedard said.

Mayor Bob Carter said while the consumer price index (CPI) has dropped down to the three per cent range, that is not the case when it comes to materials and labour associated with infrastructure, and still running around 7.5 per cent.

“So, infrastructure is very difficult to stay on top of, and it’s very difficult to catch up, particularly when you have the 7.5 per cent cost increase each year. I’m sure there’s a lot left to do. But this will at least be a start.”

Coun. Pam Sayne said the move is key now, “because we haven’t found other ways for the province to assist us with the infrastructure costs that are going up across municipalities, as well as the downloading that continues.”

Minden Hills coun. Pam Sayne – during an April 25 meeting in which the township approved a four per cent municipal accommodation tax (MAT), said it’s not “a tax grab.”

Putting it in “a larger context,” Sayne said, “municipalities cannot run a deficit. This proposal being put forward to us… has to do with making sure we can pay for the things we have to pay for. When we see an increase from the province of what we are responsible for without the money to match that, we’re in a situation where we have to pull the money from somewhere. So, this is not a tax grab. This is saying we cannot run a deficit and have to maintain services as a municipality.”

She added the township has to find a way, other than through residential, commercial and industrial taxation, to support the increased costs of running municipalities.

“So, I support it (the MAT). It’s a bigger picture,” Sayne said.

All four townships have now made decisions about charging a MAT on short-term rentals. Algonquin Highlands, Highlands East and Minden Hills have all set the rate at four per cent. County director of economic development and tourism Scott Ovell said 95 per cent of Ontario municipalities have followed suit, falling short of calling it an “industry standard.” Dysart et al, with mayor Murray Fearrey saying, “Dysart dares to be different” has set its rate at two per cent.

Ovell has indicated collecting the tax is worth the effort, estimating four per cent could bring more than $2 million to County coffers – a figure that will lessen with Dysart’s decision. It is not known what the breakdown of that would be for each municipality. He did acknowledge, however, that the math is based on full compliance, whereas they expect 65-70 per cent of STR owners will remit in the first year.

Ovell said the program has mandatory requirements, which include that at least 50 per cent of revenue go to one or more eligible tourism entities that are not-forprofit. That money must be exclusively used for promoting and developing tourism. A municipal service corporation (MSC) must be created.

The other 50 per cent of revenue goes directly to townships.

“And you can do whatever you choose with that 50 per cent,” Ovell said. “You could apply it to your roads budget, you can apply it to your capital budget. There’s no strings attached to it and it can change year by year as to how you prioritize that funding.”

The short-term rental host will collect the tax and deliver it to Granicus, the company hired to help the County’s towns with its STR program. It will be for the room rate only, not amenity fees or for parking, internet or cleaning. Bookings prior to the adoption of the MAT will be excluded from paying. It is expected to begin Oct. 1.

As part of next steps, Ovell said towns will have to do public consultation, likely via a survey and talking to stakeholder groups.

He estimated it would take a minimum 18 months from the effective date of the bylaw to when local governments will have a proper understanding of revenue generated through the program.

“Dysart dares to be different,” said township mayor Murray Fearrey, shortly after he and his council endorsed an adjusted municipal accommodation tax (MAT) April 23.

That was in response to Scott Ovell, the County’s director of economic development and tourism, who brought Dysart council up to speed on the MAT tax and its potential benefits at council’s monthly meeting.

While Algonquin Highlands, Highlands East and Minden Hills have supported the new bylaw at a four per cent tax rate, Dysart has opted to introduce it at two per cent.

“You’ve done a lot of work on this, and I sincerely appreciate it. I supported it at the start, but I’m starting to think now… I just don’t know how much tax we want to pile onto people,” Fearrey said, proposing the reduced rate.

Ovell said council was within its right to adopt whatever rate it deems fit. Of the 30 or so municipalities in Ontario to embrace a MAT, most have done so at four per cent, Ovell said. He noted the City of Niagara Falls introduced a two per cent MAT in 2022.

The County director had estimated the MAT could boost municipal coffers County-wide by more than $2 million per year at a four per cent rate. He noted at least 50 per cent of revenues must be allocated to eligible non-profit tourism operators. The County is investigating setting up a municipal services corporation (MSC) to handle those funds.

Townships would be free to utilize the remaining 50 per cent where they want, Ovell said.

Referencing data from the Ministry of Tourism, collected via short-term rental operators like Airbnb and Vrbo, Ovell said there were more than 150,000 nightly stays in the County in 2023 – up more than 90 per cent from 2019. Fearrey felt those numbers represented peak STR usage in the Highlands and that revenues would be down for most operators this year.

Coun. Pat Casey agreed with Fearrey.

“Everyone’s discretionary income is slowly getting eroded and we don’t want to kill the entrepreneurial spirit of someone making a dollar,” Casey said, noting that money is often reinvested into the community via cottage renovations and downtown shopping.

The MAT is expected to begin Oct. 1. It will be handled by Granicus, an international firm specializing in digital communications and government services, which will also oversee the County’s short-term rental bylaw.

For the past year, CanoeFM has been offering local musicians the chance to record new material in a professional environment without having to leave Haliburton County.

The non-profit community radio station has created a recording studio at its office on Mountain Street in Haliburton. People wanting to make new music, recording a keepsake for friends and family, or putting together a podcast, can rent out the space for $20 an hour.

Station manager Roxanne Casey said the studio has brought a whole new element to Canoe’s regular operations.

“There are lots of private recording studios up here, but there’s nothing like this. I feel we’re plugging a pretty sizable gap in the community. Musicians don’t necessarily need to leave our County to record their music,” she said. “We just want to get the word out, so people know this space is here.”

Since launching in February 2023, Casey said around 25 people have utilized the studio. It was also used to record The Importance of Being Earnest – which aired on Canoe’s Radio Playhouse last summer.

The project, which cost approximately $70,000, had been in the works for several years. The station’s former board chair, Paul Vorvis, floated the idea in early 2022, believing space in Canoe’s meeting room could be repurposed and better utilized. They secured $35,000 from the Community Radio Fund of Canada towards renovations and used proceeds from radio bingo to pay for the rest.

There are acoustic panels fitted on the walls, new speakers, and a new computer set-up, kitted with programs like Logic Pro, to streamline the recording process. Musicians should bring their own instruments. Laurie Sweig, one of the lead volunteers at the studio, said people have brought in guitars, a cello, viola, and a keyboard.

People looking to mimic sounds of a specific instrument can use a MIDI controller Canoe has purchased. It replicates sounds using online software, which can be layered within a final recording.

“My dream for this place is that anyone who is too shy to go to a professional studio, has a song they recorded in their basement on their phone, to come here and put a professional version together,” Sweig said. “There’s a lot of talented people in this community. I think this new space is providing opportunities for musicians to get their foot in the door at an affordable rate.”

Casey said there’s an option for musicians to record music at the studio and then submit it for broadcast on Canoe’s airwaves.

Bethany Houghton was introduced to the studio about a year ago. She and her husband, Ernie Demuth, have played there twice and plan to record an album.

“I really enjoy the atmosphere – Laurie is great, really encouraging. And knowledgeable. She makes it really easy for people to go in there and do their thing,” Houghton said.

Michele Swyer utilized the studio for an instrumental piece featuring piano, cello, violin, and viola, earlier this year.

“It was magical hearing it back for the first time. I didn’t think my song could get any better,” she said. “The studio is pretty impressive. Recording was fun because you can experiment with so many different things… we have a real treasure here with this new space.”

Sweig said more volunteers are needed if this studio is to grow. Training is provided for free.

“I’d like to see us busier, building our volunteer team, and getting more people comfortable enough to do recordings,” she said.

People looking to book a time to record need to fill out an application and schedule a pre-recording meeting. Anyone interested in volunteering can contact Sweig at thestudio@canoefm.com.