Province responds after Ontario township moves to suspend services with $2.5M in accumulated debt

A small township in northern Ontario says it will suspend all municipal services next month, after years of financial instability and pleas for provincial help.

The Township of Fauquier-Strickland announced the decision last Tuesday, citing over $2.5 million in accumulated operating deficits and the complete depletion of reserve funds.

In a release issued July 9, municipal officials say they’ve exhausted all other options, including layoffs and significant service cuts.

Although the province’s Minister of Municipal Affairs and Housing stepped in July 10 stating that they have arranged to meet with council and municipal staff during the week of July 14 2025, the town’s status remains uncertain.

Before the resolution to suspend all municipal staff was passed June 30th, the only alternative, according to the town, would have been to implement a property tax increase of 190 to 230 per cent on residents, which would have tripled most tax bills and potentially forced families from their homes.

The municipality says they has been operating with zero cash reserves for over a year, relying heavily on credit to fund ongoing operations. In 2024, property taxes were increased by 26 per cent in an effort to address the growing problem.

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The township says they previously requested financial aid from the Ministry of Municipal Affairs and Housing, before receiving a letter from Robert Flack, Minister of Municipal Affairs and Housing on July 10.

Before the latest resolution, municipal employees were set to be laid off Aug. 1, 2025.

The town raised concerns, citing that the layoffs would have represented a significant loss for a community where the municipality is the largest local employer and one of the only sources of summer student employment.

“The temporary cessation of municipal services sends concerning signals,” the township’s initial release read, “and could undermine years of progress in regional development.”

After decades of population decline, Fauquier-Strickland and the surrounding region had begun attracting new families drawn by affordable housing and resource-sector jobs.

The municipality says they have reached out to neighbouring communities for support in advocating for provincial intervention, recognizing that the economic consequences this crisis could have on the small municipalities throughout the Highway 11 corridor.

“This represents the most difficult decision Council has ever had to make,” the July 9th statement said.

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