'You got to be freaking kidding me': Residents get property tax sticker shock amid Ontario town's money woes

Alan and Dawn Gosnay moved to the northern Ontario township of Fauquier-Strickland late last year, attracted by the lower housing costs and an opportunity to live closer to their grandchildren.

"We saw the house and the town and that was it. We fell in love," Alan said. "It was great. The house is beautiful."

The couple settled into the community, which is east of Kapuskasing on Highway 11 and has a population of about 500, in December. But when the new year rolled around, he said, their property taxes went from around $2,300 a year to $5,600.

As a retiree on a fixed income, that came as a shock.

Then came more troubling news: At a community meeting on Tuesday, a township councillor said a 200 per cent property tax increase would be needed to balance Fauquier-Strickland's finances.

"And I'm thinking, 'Holy mackerel, you got to be freaking kidding me, right?' You just can't do that," Alan said.

The next day, Fauquier-Strickland Mayor Madeleine Tremblay confirmed the township had a $2.5-million operating deficit.

The debt, she said, was due in part to some infrastructure upgrades that went over budget. Upgrades to the municipal water filtration system during the COVID-19 pandemic, for example, ended up costing the small municipality $1 million.

Tremblay said the township would be forced to shut down all municipal services as of Aug. 1 without financial intervention from the province or a significant property tax increase for ratepayers.

Tremblay also said many other small municipalities in Ontario are facing similar challenges due to rising costs and a small tax base to cover basic operations.

In an email to CBC News, Alexandra Sanita, a spokesperson for Ontario's municipal affairs and housing minister, Rob Flack, said the ministry is "actively engaging with the Township of Fauquier-Strickland on their local challenges."

Zachary Spicer, an associate professor at York University's School of Public Policy Administration, previously told CBC News that a municipal bankruptcy in Ontario hasn't happened since the Great Depression, nearly 100 years ago.

Alan Gosnay, meanwhile, wants the township to consider amalgamating with the Town of Kapuskasing to expand the tax base.

If the Ontario government does intervene, he said, it should come with strings attached.

"They're not just going to step in and hand them money to pay everything off," he said.

"They're going to have an investigation."

Mike Savage moved to the community from the Toronto area four years ago for the quieter lifestyle and better access to nature.

He said he's confident the province will intervene to help the township stay afloat financially.

"They've been talking a lot about how important northern Ontario is and how close we are to essential resource jobs, and critical minerals and defence as well," he said.

"So I think that there's a strong argument to be made for trying to reinforce and grow, and get creative with northern communities."

Savage said northern Ontario offers a lot of opportunities for young people wanting to work in mining or forestry, and has more affordable housing compared to southern Ontario.

But townships like Fauquier-Strickland can't be allowed to fail for that to happen, he added.

"I still think the community can pull together, but we do need some outside help."