After a study comparing the state of Ontario municipalities turned up some worrying results for the county, Mayor Amy Martin says it’s time for the province to help.
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At a meeting on Wednesday, council passed a motion directing county staff to develop a strategy to lobby the Ontario government for alternate funding sources, including a percentage of the HST, and a “new deal” for Norfolk – a reference to an agreement the province made with Toronto to improve the financial position of that city.
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“We know here in Norfolk County our homeowners and community members are making less than the provincial average and less than our municipal comparators,” said Martin. “We know we have a higher municipal burden than average. We know we’re taking on a considerable amount of debt.
“I think it’s time we look at advocating for alternative funding sources.”
Since 2000, BMA Management Consulting Inc. has done an annual study comparing Ontario municipalities based on key performance indicators. In 2023, 121 municipalities participated. Norfolk was included in the southwest region, along with 21 other municipalities. In a report provided to councilors on Wednesday, Norfolk staff narrowed down the results using a smaller comparator group that includes Haldimand, Brant, Central Elgin, Chatham-Kent, and Tillsonburg.
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Some of the key findings include:
- Norfolk County’s average household income for 2023 is estimated at $100,007, roughly $8,700 lower than the Southwest Ontario average and $21,000 lower than the provincial average.
- Only about 60 per cent of Norfolk residents use water and wastewater services, making the rate debt burden per user higher than other rural municipalities.
- Norfolk’s percentage of residents 65 and over is 26 per cent higher than the Southwest Ontario average.
- The amortization of Norfolk’s assets has been increasing more than the value of the assets, at a rate of one per cent, which is about twice the provincial average, demonstrating the county hasn’t been sustaining its assets in a good state of repair.
- The debt outstanding per capita, calculated by taking the total debt outstanding for each municipality and dividing it by the population, combined with all debt for approved capital projects yet to be issued, has Norfolk sitting at $2,975, compared to $686 for the Southwest Ontario average and $692 for the provincial average.
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“When considering total debt outstanding at Feb. 1, 2024, plus all debt for approved capital projects that is yet to be issued, the figures are quite alarming,” said the county staff report. “Without monumental changes to funding available for supporting rate-related capital projects, Norfolk County is projected to become the municipality with the highest rate debt outstanding per capita across the entire province.”
In January, Norfolk council passed a motion calling on the province to ease the financial burden on municipalities by working with the Association of Municipalities of Ontario (AMO) to conduct a “comprehensive social and economic prosperity review to promote the stability and sustainability of municipal finances across Ontario.”
The motion, also introduced by Martin, said nearly a third of municipal spending in Ontario is for services in the areas of provincial responsibility, and expenditures are outpacing provincial contributions by nearly $4 billion a year.
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