An Eastern Ontario Regional Network (EORN) affordability and governance structure study for the County of Haliburton would investigate “credible governance alternatives” to the current upper-tier and four lower-tier system, CAO Gary Dyke told council at its April 8 meeting.
Dyke said operating five separate municipal organizations for a permanent population of 20,500 people results in duplication of several administrative functions. He added it restricts regional planning, creates inconsistent regulatory environments, slows response time for residents, and limits the County’s ability to realize sustained administrative savings.
He acknowledged the 2022 service delivery review identified several opportunities to potentially consolidate services for greater efficiency.
“However, a deeper, independent analysis would be needed to quantify savings, identify service-level impacts, and establish a realistic implementation plan.”
At yesterday’s meeting, Dyke received unanimous support for the study. Warden Dave Burton will write the minister of municipal affairs and housing for support – with the cost estimated at $100,000 to $150,000 – and to be completed by the end of this July. Dyke stressed any changes would be considered by the new, 2026-2030, council.
He said the need for change became clear during difficult 2026 budget deliberations. Many of the financial pressures are out of the County’s control; having to pay 35-40 per cent of the tax rate increase to external bodies, such as the City of Kawartha Lakes for social services, Lakelands Public Health, Haliburton County Public Library, the Municipal Property Assessment Corporation, health professional recruitment, and the Haliburton Highlands Outdoors Association – leaving less for core township costs such as roads and bridges. He further estimated 98 per cent of taxes come from residents.
Current financial model ‘no longer sustainable’
“The current model … is not sustainable and brings significant risk to the County and the community. Risks that could result in decreasing levels of service and a greater burden on local households. The model requires review,” Dyke said.
The detailed study will explore options for the County’s future that will also quantify current and future fiscal exposure, identify realistic implementation options, and secure provincial support.
Risks with status quo
With household incomes 17 per cent below the provincial median – $66,000 after-tax according to the 2021 Census – high child poverty rates, low youth income, the high cost of housing, and 18 per cent facing food insecurity, Dyke said the community is highly sensitive to tax and fee increases.
He said there are risks to maintaining the status quo, such as ongoing structural inefficiencies that could lead to municipal service cuts, deferred infrastructure renewal work, or increasing the tax burden on the community.
“Independent scenario modelling can evaluate options ranging from targeted shared-services and functional consolidations to a transition to a single-tier governance model, providing clear forecasts of tax and levy impacts over five, 10 and 20-year horizons.” He added the study would identify one-time implementation and transition costs.
“A comprehensive study will strengthen any provincial funding request and demonstrate that local measures to ‘get our house in order’ have been thoroughly examined.”
Dyke added “lower-tier municipalities will be formally integrated into the information gathering and assessment phases as active contributors and co-analysts. This will include providing local data (financials, service levels, asset inventories), participating in stakeholder interviews and focus groups, hosting community engagement events when appropriate, and contributing local expertise to validate modelling and scenario testing.”
Unanimous support
Burton said council directed the staff report “in the best interests of the community.
“A governance review provides us with an opportunity to step back, take a comprehensive look at how we operate, and ask whether our current structures are serving us as well as they could or should. The goal is to build a clear understanding of what is working well, where there may be gaps, may be challenges, and what opportunities exist in improvement. This is an opportunity to shape the future of how we govern and ultimately how we serve the people.”
Deputy warden Liz Danielsen said she was pleased to see council moving in this direction. “We looked at service delivery, became bogged down, we are all facing serious pressures.”
Without the study even underway, Coun. Murray Fearrey said he was worried change could add $7-8 million-a-year to the tax base. He said the province might respond that Haliburton County townships should be amalgamated with larger regional government, such as Peterborough. “I fear we could lose our autonomy here.”
Coun. Cec Ryall said they could learn a lot from the health unit merger, in which the province financially assisted the process. Council unanimously endorsed the recommendation, 7-0, with coun. Lisa Schell not in attendance.
