By: Pam Fedack, Local Journalism Initiative Reporter
Source: Kenora Miner & News
A recent report from the Northern Policy Institute (NPI) highlights that numerous municipalities in Northern Ontario are shouldering the costs of services for residents who live outside their boundaries and do not contribute to municipal property taxes.
The report, titled Serving More People Than You Can Tax: The Fiscal Impact of Municipal “Fringe Populations” in Northern Ontario, looks into the financial effects of residents from nearby unorganized areas who rely on municipal services while living beyond municipal limits.
According to the study, municipalities with larger fringe populations often spend more per resident on key services such as police and fire protection, recreation and cultural programs, and social and family services.
Researchers discovered that these municipalities usually face higher service costs even when accounting for other factors that can affect spending.
These findings echo concerns voiced by municipal leaders in Northern Ontario about how communities are managing expenses for individuals they cannot directly tax.
The report points out that this situation can lead to financial strain on municipalities, which may result in increased taxes for local residents or cuts in services. At the same time, residents in unorganized areas might encounter difficulties because they often depend on municipal services without having much say in local decision-making.
Author William Dunstan mentioned that resolving this issue will necessitate cooperation among municipalities, unorganized area residents, and the provincial government.
“Municipalities, residents of unorganized areas, and the province should work together to ensure people across Northern Ontario have access to adequate services, pay their fair share for these services, and have a voice in decision-making,” Dunstan said.
The report outlines several potential solutions like annexing some unorganized areas into neighboring municipalities or establishing a regional government system similar to British Columbia’s regional districts.
The full report is available on the Northern Policy Institute’s website.
Tim Davidson has more than 30 years of experience in radio news. He is based in Kenora and covers stories in northwestern Ontario. Contact Tim at davidson. tim@radioabl. ca.
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