By Emily Stonehouse

A historic conversation took place around the County Council table last week, when the topic of an affordability and governance structure study was brought forward.

The purpose of the study is to recognize efficiencies and gaps presented by the two-tiered municipal structure in Haliburton County.

“I encourage all members of council to approach this discussion with openness, and a focus on the long term interest of our community,” opened Warden Dave Burton, the mayor of Highlands East. “This is an opportunity to shape the future for how we govern, and ultimately, how we serve the people.”

Burton noted that while the conversation will be starting with the current sitting council, it will be the decision of the next council, slated for a 2026-2030 term, to make the final call.

County CAO Gary Dyke kicked off the conversation, noting that considerations around ongoing and significant fiscal pressure resulted in a difficult budget process. “We saw a significant escalation in external costs to the County, on top of the demands we have with respect to the direct related County costs.”

“Both layers of council had to take what I would deem to be extraordinary measures to mitigate the tax rate increase,” said Dyke, noting the deferral of capital projects and expenditures in an effort to keep rates low. “The ultimate goal is not only the facilitation of growth,” said Dyke, “but to create a stable economy.”

Dyke outlined a number of challenges felt as a community, and as a government agency, including a complex financial landscape, external pressures, a highly residential tax base, significant upcoming funding gaps, and an unsustainable approach to governance as a multi-tiered system.

Through a study developed to navigate these gaps and challenges, Dyke hopes to move forward in a constructive manner. He shared that the intent of the study is to provide clarity about the current environment, create affordability for taxpayers, modernize the governance model, and support a stable and strong economy.

From a broader context, Dyke noted that municipalities pay for high-cost services outside our control, and are limited by property taxes as the primary source of revenue. “It’s one of the most inefficient revenue generating tools we have,” said Dyke. With 98 per cent of revenue coming in from residential taxes, that hovers at five times higher than the provincial standard. “The infrastructure funding model is unpredictable and insufficient,” said Dyke.

While the tax base resides primarily amongst residential units, the after-tax household income hovers at 17 per cent lower than the provincial average, based on 2021 Census numbers.

On a slide titled “Governance: Time for Modernization”, Dyke shared that the population of Haliburton County sits at 20,500, with five separate municipal organizations. “Is this the most efficient system of governance that exists?” he asked. “I’m not saying it is or it isn’t, but that’s the question.”

“The underlying piece we need to look at going forward, is when you look at the complexities of a municipality in 2026, being asked to solve twenty first century problems and complexities with a system of governance that was created in the nineteenth century,” he said. “Is it the best system we have?”

Dyke warned against a risk of status quo, with reduced services, loss of community-based assets, deferred infrastructure renewal work, and an increased tax burden.

Dyke introduced the Eastern Ontario Regional Network (EORN); an organization created by the Eastern Ontario Wardens’ Caucus, dedicated to improving and supporting economic growth and enhancing quality of life. While the CAO noted that they do have capacity and skills able to conduct a study of the local governance internally, he sees the value in bringing in an organization like EORN to ensure bias doesn’t play a part in the findings.

Next steps for the study are to engage the consulting team, complete the study by the end of July, present to Council and the Province on the findings, before the municipal election nomination period ends on Aug. 21. By December of this year, staff will bring the reports to the newly-elected councils.

“We’re all facing some really serious pressures,” commented Deputy Warden Liz Danielsen, the mayor of Algonquin Highlands. “I’m extremely supportive of moving forward with this process.”

“I’ve looked at that proposal for a number of hours,” said Councillor Murray Fearrey, the mayor of Dysart et al. “And it’s scary to me. It looks like there’s going to be an average of seven to eight million dollars added to the tax base each year. That’s not sustainable … what happens at the end of the day if we do the study and it comes up that we can’t come up with a reasonable tax rate down the road?”

Dyke noted that he sees opportunities for significant savings throughout the process. “This isn’t the final solution,” he said. “But if we don’t do something, we run the greater risk … where we become irrelevant in any decision making in our future by not demonstrating that we understand the problem.”

Councillor McKechnie voiced his concerns around the potential taxpayers’ increased rate, and demanded full transparency in the entirety of the process to benefit the community as a whole.

Dyke reiterated that the project proposed is a community benefit study. “This isn’t benefitting Gary Dyke, this isn’t benefitting the County of Haliburton. This is benefitting the community of Haliburton County, and making sure all those people have a voice.”

It was agreed that this current council would develop the foundation for decisions around restructuring, but it would be the responsibility of the next council to implement any changes that may arise from the study findings.

County council members unanimously agreed to engage EORN to lead the study, and move forward with the project, with seven votes in favour of the report. Lisa Schell, the deputy mayor of Minden Hills, was absent from the meeting.