'We don't know what the next step is': northern Ontario town facing financial crisis to meet with the province

A northern Ontario town that faces a shutdown of municipal services next month is meeting with representatives from Ontario's Ministry of Municipal Affairs and Housing on Wednesday to help find a solution to its financial problems.

 "We don't know what the next step is," said Shannon Pawlikowski, the Township of Fauquier-Stickland's director of municipal services, during a special council meeting Monday night.

"We don't know if they're going to amalgamate us with another municipality or provide us with loans. Because the cost of operating this municipality exceeds what the tax base can afford."

Last week, Fauquier-Strickland Mayor Madeleine Tremblay said the municipality of just under 500 people, located on Highway 11 east of Kapuskasing, has a $2.5 million deficit and would need to cease all municipal services by Aug. 1 without intervention from the province.

Tremblay clarified at Monday's meeting that households would still continue to be connected to the municipal water supply after Aug. 1, even if the province doesn't intervene.

But other services, such as garbage collection, would no longer be offered.

Pawlikowski said residents would have to bring their waste to a landfill in a neighbouring community because it would be a liability to keep Fauquier-Strickland's landfill open without staff there to run it.

"It's going to be a big problem if we can't use the dump," said Coun. Pierre Lamontagne.

Lamontagne noted, to some laughter in the crowd, that if every household paid $9,000 it would eliminate the municipality's deficit.

"I've done the count, and that's what it is," he said.

During the meeting some citizens voiced their frustration at the township's poor financial standing.

Dan Michaud, who ran for mayor against Tremblay in 2018, said Fauquier's financial problems go back at least that far.

"We had this problem eight years ago and it's still not resolved," he said. 

Other residents asked why the municipality "went on a spending spree."

Tremblay told CBC News earlier that upgrades to the  water filtration system during the COVID-19 pandemic went over budget, leaving the small community with a bill for $1 million.

On Monday, Pawlikowski noted that construction of a new municipal building and health centre came in at $2 million.

Stagnant tax base

She said that even if the province paid off the township's $2.5-million operating deficit "we would still be operating barebones."

Pawlikowski said that while Fauquier-Strickland's population has increased somewhat since the pandemic, the tax base hasn't grown since many of the new residents are families with young children.

In the end, council voted in favour of a motion saying it is willing and ready to work with the Ministry of Housing and Municipal Affairs to help solve this financial crisis.