RatepayerAffordability  OneofaSeriesofWhitePapers  onthe  FinancialSustainabilityofLocalGovernmentsinEastern  Producedby  TheEasternOntarioWardensCaucus  December,2013   Preparedby  KathrynWood NaturalCapitalResourcesInc. 

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 TableofContents  1. ExecutiveSummary...... 2  2. Introduction...... 6  3. RegionhasLowerAverageandMedianPersonalEarnings...... 8  4. RegionhasLowerAverageandMedianHouseholdIncomesthanOntario...... 11  5. LowerRelianceonEmploymentIncomeinRuralEasternOntario...... 14  6. ModestGrowthinPopulation,HouseholdsProjectedforRegion...... 16  7. HigherProportionofElderlyPersonsinRuralEasternOntario...... 19  8. HighLevelsofHomeOwnershipinRuralEasternOntario...... 21  9. ValueofOwnedDwellingsisSignificantlyLowerinRuralEasternOntario...... 22  10. HigherPercentageofRuralEasternOntarioHomesinNeedofMajorRepair...... 23  11. SkewedAssessmentPutsHeavyBurdenOnResidentialRatepayers...... 25  12. MedianShelterCostsGenerallyLower...... 28  13. RuralEasternOntarioWorkforceHasLonger,MoreExpensiveCommute...... 29  14. RuralEasternOntarioResidentsLessLikelytoHavePostͲSecondaryEducation...32  15. TakingActiononRatepayerAffordability......  36   

1  1. ExecutiveSummary  ThisWhitePaperexaminestheeconomiccircumstancesofresidentsofRuralEastern OntarioandisintendedasacompanionreporttotwootherWhitePapersonmunicipal operatingcostsandrevenues,andmunicipalinfrastructure,producedbytheEastern OntarioWardens’Caucusin2013.Byconsidering“ratepayeraffordability”,theEOWCis seekingabetterunderstandingofthedegreetowhichratepayerscanaffordtopayhigher taxes–especiallyannualtaxincreasesthatgobeyondthe annualincreasesintheir incomes.  Sincemanyofthecostsoflocalgovernmentaredeterminedbypolicydecisionsand agreementsmadebytheProvinceofOntario,thisWhitePapercomparesRuralEastern Ontariototheprovincialaverageonmorethanadozenvariablesthatmakeupthe economicprofileofatypicalratepayerinRuralEasternOntario.Andbecausemajorurban centressuchasandmustmanageinasimilareconomicenvironment,this WhitePapercompares Rural Eastern Ontario to thosetwocities to see how similar ratepayers’economiccircumstancesaretoRuralEasternOntario.  Whatemergesfromtheseregionalandcomparative analysesisaprofileofRuralEastern Ontarioratepayersthatisverydifferentfrommajorurbancentresattheregion’speriphery, aswellasdifferentfromtheprovinceasawhole.Onvirtuallyeveryvariable,ratepayers’in RuralEasternOntarioarelesswelloff,meaningtheyhavefewerresourcestodrawupto payfortheirownlivingcosts,meettheexpensesofeducatingtheirfamiliesorthemselves, gettingbackandforthtowork–ofteninanothermunicipality,payingforvitalmunicipal servicesorsupportinginvestmentinmunicipalinfrastructure.Itisalsoclearthatthese patterns,inrelationtoOntarioasawhole,havepersistedthroughtherecession.  ATypicalResidentofRuralEasternOntario:  x Averagepersonalearnings:$38,317;~$4,000/year($330/month)  lessthanprovincialaverage  x Largershareofearnersinlowerearningsbrackets:$28,241  (median);~$2,200lowerthanprovincialmedianearnings   x Oneinfive(~18%)isaseniorcitizen    x Lowershareofincomecomingfromemploymentearnings:~67%;nearly10%lessthan provincialaverage(75%)  x Moredependentongovernmenttransfers:15.4%ofincome;higherthanprovincial average (12.3%)  x Corelabourforce(25Ͳ64years)is55%oftotalpopulation;equaltoprovincialaverage  x Lowershareofworkforceagepopulationwithcollegeoruniversityeducation:~47%; ~10%lessthanprovincialaverage(57%)  x Highershareofworkforceagepopulationwithtradescertificate/diploma:~11.0%;twice ashighasOttawa(5.5%)orToronto(5.2%)  x Lowersheltercostsby$330/monthforownedhomes,butlongermoreexpensive commutes(~$325/monthhighercostfortransportation)

2  ATypicalHouseholdinRuralEasternOntario:  x Loweraveragehouseholdincome:$75,202;~$10,000/year ($830/month)lessthanaveragehouseholdincomeforOntario  x Largershareofhouseholdsinlowerincomebrackets:$62,909/year medianincomeis$3,000/yearlowerthanOntarioasawhole   x 84%ofresidentsowntheirhomes(muchhigherthanprovincialaverage:71%)  x Lesschoiceinhousing(apartments,condos)  x Nearly90%oflocalassessmentisresidential,meaninghouseholdscarrymostofthemunicipal serviceload  x Medianvalueofhousing($232,925)is$60,000lowerthanprovincialaverage($300,862)  x Largershareofhomesinneedofmajorrepair(8.2%)thanOntario(6.6%)

 RecommendationstoAddressRatepayerAffordability Keepingmunicipalgovernmentaffordableforlocalratepayerswillrequirelocalgovernmentsto changethetrajectoryofbothservicedeliverycostsandtherevenuesavailabletopayforthese services(see EOWC White Paper on Municipal Affordability). Local governments will also need tobecomemoreproactiveinsupportingtheeffortsoftheirownratepayerstoimprovethe economiccircumstancesoftheregion,itshouseholdsandbusinesses.ThisWhitePaper containsinformationwhichwillhelptoguidetheforthcomingregionaleconomicdevelopment strategyprojectbeingundertakenbytheEOWCinpartnershipwithotherregionalstakeholder groups.Thefollowingrecommendationscoversomeactionsthatlocalgovernmentsmighttake ontheirownorthroughtheEOWC,aswellasthosewhichmightbe undertakeninpartnership withupperlevelsofgovernment. RecommendationsforEOWCandConstituentMunicipalities: EͲ1:ItisproposedthattheEOWCcontinuetoactivelysupportthedevelopmentofaregionͲ wideeconomicdevelopmentstrategywiththelongͲtermobjectiveofstimulatinggrowthas wellasjobsacrosstheregion,whichwillinturnstimulategrowthintheregion’spropertytax base.Theultimategoalistoincreasetotalassessmentaswellastheproportionofassessment fromindustrial,commercialandinstitutionaloperations.(Thissamerecommendationisfound intheMunicipalAffordabilityWhitePaper). EͲ2:ItisproposedthattheEOWCcontinuetoworkwiththeprovincialandfederal governmentstobuildawarenessandutilizationoftheprovincial(permanent)EasternOntario Development Fund (EODF) and programs of FedDev across the region. In particular, the EOWC willa)encourageutilizationoftheEODFSmallCommunity/Pilotfundingstreamforbusinesses thatfallbelowthe10Ͳemployeeminimumthreshold,andb)suggestopportunitiestoFedDev forfundingregionalinitiativesdesignedtostimulateprivatesectoreconomicactivityacross RuralEasternOntario.

3  EͲ3:ItisproposedthattheEOWCcontinuetoencourageEORNtoinvestigateandprovide leadershiptodeploymentofnew,internetͲbasedtechnologiesbysmallandmediumͲsized businessesincludingbutnotlimitedtoagriculture,forestry,manufacturingandfabrication, construction,informationcommunicationstechnology(ICT),transportation&logistics,health care,education,andtourism.Increasedutilizationoftheregionalbroadbandnetworkfor businesspurposesisexpectedtoexpandmarkets,increaseprivatesectoreconomicactivity, createjobs,andultimately,increasenonͲresidentialassessment. EͲ4:ItisproposedthattheEOWCactivelysupportthedevelopmentofanintegratedregional transportationand(nonͲtraditional)transitsysteminRuralEasternOntariotoincreaseaccess tomarketsinandoutsidetheregion,aswellasimprovingcostͲeffectivenessofworkforce commutesinandoutoftheregion.Enablingtheworkforcetogetbackandforthtoworkina costͲeffectivewayisexpectedtoincreaseemploymentandrelatedearnings.  EͲ5:ItisproposedthattheEOWCactivelysupportthedevelopmentofinͲregionanddistance educationandtrainingopportunitiestoenhancetheeducationandskilllevelsoftheregion’s populationandworkforce,therebyenhancingtheabilityoflocalresidentstofindemployment andincreaseearnings.  EͲ6:ItisproposedthattheEOWCadvocateforreinstatementofthefederalHomeRenovation TaxCredit–especiallyforenergyefficiency,andthecontinuationandextensionofthe provincialHomeRenovationTaxCreditforseniorsandfamilymemberslivingwiththem.Itis furtherrecommendedthatthesetaxcreditsbefocusedonlowͲincomeownerͲoccupied households.  EͲ7:ItisproposedthattheEOWCactivelysupportthedevelopmentofaregionalyouth retentionandreͲattractionstrategythroughwhichtoincreasetheoverallsizeofthelabour forceinRuralEasternOntarioandcontributetosuccessionplanningforlocalenterprises.  EͲ8:ItisproposedthattheEOWCadvocateforadditionalfinancialsupportforaffordable housinginitiativesthatwouldreducetheneedforresidentstomovetourbanareasforthese typesofaccommodations.  RecommendationsfortheProvinceofOntario:  UͲ1:ItisproposedthattheProvinceofOntarioprovideEasternOntariomunicipalitiesthat havesignificantCrownlandsorotherlandswithassessmentconstraints(e.g.managedforests, farmland,aggregatesitesetc.)intheirjurisdictionswithcompensationreflectingthese propertyͲbasedlimitations.ThecompensationcouldbeaPaymentͲinͲLieuoranannualshareof revenuesaccruingtotheProvincefromtheselands(e.g.royaltiesfromstumpagefees).This compensationwouldbeinrecognitionoftheserviceprovidedbymunicipalitiesinbuildingand maintainingroadsandbridges,andprovidingemergencyservicesforthesetaxͲexemptlands. [ThissamerecommendationisfoundintheMunicipalAffordabilityWhitePaper] 

4  UͲ2:ItisproposedthattheEOWCcontinuetoworkcooperativelywithprovincialandfederal authoritiestoobtainanagreementrelatedtotheAlgonquinlandclaim.Onceanagreementis inplace,itisproposedthattheEOWCworkcollaborativelywithintheAlgonquinNationto identifyandpursueopportunitiesforeconomicdevelopmentbenefitingtheAlgonquinsandthe regionasawhole.[ThissamerecommendationisfoundintheMunicipalAffordabilityWhite Paper]. UͲ3:ItisproposedthattheEOWCencourageandsupporttheProvinceofOntarioinits continuedeffortstocontainthegrowthinprogramandservicedeliverycosts,includingthose thataremandatedtomunicipalgovernment(examples:policingcosts).Itisfurtherproposed thattheEOWCencouragetheProvincetoengagemunicipalitiesandtheEOWCinprocesses whichwillaffectservicesmandatedtomunicipalgovernment. UͲ4:ItisproposedthattheEOWCworkwithAMOandtheProvinceofOntariotodevelopa strategywhichwouldallowandencouragelocalgovernmentstointroducenonͲtaxͲbased revenuegeneratingmeasurestomaketheirmunicipalitiesmorefinanciallysustainable.The firstprioritycouldbeanexaminationofwaystoleverageexistingmunicipalassetstoprovide newrevenuestreams(examples:outstandingPOAmonies;perͲtonchargeforaggregates). [ThissamerecommendationisfoundintheMunicipalAffordabilityWhitePaper]. UͲ5:ItisproposedthattheProvinceofOntariobroadenitscommitmenttoworkwith municipalitiesonrenewableenergydevelopmenttoincludedeterminationofappropriate propertytaxratesforalltypesofrenewableenergy,notjustwindturbinetowers.Thisisan essentialcompaniontotheproposedchangestotheFeedͲinͲTariff(FITProgram)whichare intendedtoengagemunicipalitiesandAboriginalcommunitiesinlocationandsitingdecisions, andprovidingnewenergyͲrelatedeconomicdevelopmentandrevenueopportunitiesfor municipalitiesandpublicsectorentities.[ThissamerecommendationisfoundintheMunicipal AffordabilityWhitePaper]. UͲ6:ItisproposedthattheEOWCworkwithAMOandtheProvinceofOntariotodetermineif therearealternative,costͲeffectivewaystodeliverservicesatthelocallevel,andseek opportunitiesforpilotprogramsthroughwhichthesealternativesmightbetestedonacostͲ sharedbasisinRuralEasternOntario.[ThissamerecommendationisfoundintheMunicipal AffordabilityWhitePaper]. 

5  2. Introduction  Followingthecompletionofthelandmarkanalysisoftheoverallfinancialsustainabilityoflocal governmentsinEasternOntarioinFebruary2012,theEasternOntarioWardensCaucus commissionedseveralfollowͲupprojectsto: x Examineselectedpriorityareasingreaterdetail,and x Updatekeyvariablessotheworkwouldremaincurrentandcouldbeusedwithconfidence asasupporttofutureEOWCwork. TheEOWCidentifiedfivepriorityareasforfurtherattention,eachofwhichisbeingaddressed usingaWhitePaperformat: x MunicipalAffordability–anexaminationofoperatingconditionsformunicipalities x RatepayerAffordability–anexaminationofthefinancialcircumstancesoflocaleconomies andtheruralresidentswhobearmostofthecostofservicedelivery x MunicipalInfrastructure–anexaminationoftheconditionsinfluencingtheoverallstateof municipalinfrastructureandmunicipalities’abilitytoinvestinandmaintaintheseassets x SocialHousing–anexaminationofthefinancialcircumstancesofupper/singletier municipalitiesinaddressingthesecommunityneeds,bothintermsoflocaldemandfor serviceandthefinancialimplicationsofassociatedcapitalinfrastructurerequirements x EnvironmentalServices–anexaminationofthefinancialcircumstancesofsingle/lowertier municipalitiesinaddressingtheseresponsibilities,onboththeoperatingandcapitalfronts.  TheWhitePapersonMunicipalAffordability Figure1ͲForthepurposesoftheWhitePapers,"Eastern andMunicipalInfrastructurewerereleasedin Ontario"wasdefinedastheareaboundedbythe13 thelatesummerof2013whilethePaperson membergovernmentsoftheEasternOntarioWardens RatepayerAffordability,SocialHousingand Caucusandthe90lowertiermunicipalitieswithinthose boundaries.The10SeparatedCities(andTowns)withinor EnvironmentalServiceswillbereleasedinthe adjacenttothosegovernments,andtheCityofOttawaare fallͲwinterof2013Ͳ2014. notincludedintheseanalyses.  TheseWhitePapershastwonewfeaturesnot includedintheoriginalfinancialsustainability analysis.First,theWhitePapershaveadded financialprojectionstoallowtheEOWCand otherstakeholderstounderstandwhatthe financialfutureholdsintheyear2020if recenttrendscontinue.Second,theWhite Paperscontainrecommendationsforactionto addressthechallengesenvisagedasaresultof theprojections.  Methodology:Mostdataisfromthe2000and 2006census,the2011NationalHouseholdSurvey,orannualmunicipalFinancialInformation Returns(FIRs).Insomecases,projectionshavebeenmadebasedonsimplestraightͲline extrapolationfromtheactualexperienceinthreetimeperiods:2000Ͳ2011,2007Ͳ2009and 2009Ͳ2011. 

6  NotesaboutDataSources  Note1:AssessingchangesovertimeformanyofthevariablesofinterestforRuralEastern OntarioresidentsisnolongerpossibleduetomethodologicalchangesinthewayStatistics collectsandpublishesthesedata1.Inparticular,thechangefromthetraditionalcensus (usedupto2006)totheNationalHouseholdSurvey(NHS,usedforthefirsttimein2011) reflectsachangefromacomprehensivesurveytoasamplingapproachwhichaffectsthe comparabilityofthedatafromthesetwosources.Secondly,thechangeinmethodologyhas resultedinsparsedata–andthereforesuppressed/unpublisheddata–frommorethan20of the103single,upperandlowertiermunicipalitiesinRuralEasternOntario.Itisnotclearwhat biasingeffectstheremaybefromthisphenomenon.Asaresult,thisreportincludes2006 censusand2011NHSdataseparatelyandcompareseachtotheOntarioaverageforthatsame timeframe,ratherthanexamininghowavariablemayhavechangedovertime.Thisis particularlydisappointingsinceakeyquestiontheEOWCwishedtoanswerwashowRural EasternOntariohadfaredthroughtherecessionstartingin2008.Thechangeinmethodology limitsourabilitytoaddressthisquestion.  Note2:Financialdatasuchasearningsandtotalincomearedrawnfromtheprevioustaxyear. Inotherwords,earningsreportedinthe2006censusarebasedonthe2005taxyear.Similarly, the2011NationalHouseholdSurveyreportsdatabasedonthe2010taxyear.Otherdatasuch ashouseholdcompositionoremploymentstatusreflectsthecurrentyear(e.g.2006or2011). Inthisreport,wewillreferonlytothecensusorNHSyear.Thereaderisremindedthatinsome cases,thedataisactuallyfromtheprecedingyear.  



1Whenincomedatafromthe2011NationalHouseholdSurveywasreleasedinSeptemberof2013,StatisticsCanadanoted that“LowͲincomeestimatesfromthe2011NationalHouseholdSurvey(NHS)comparedwithpreviouscensusesshow markedlydifferenttrendsthanthosederivedfromothersurveysandadministrativedatasuchastheSurveyofLabourand IncomeDynamicsortheT1FamilyFile.DatatosupportqualityestimatesoflowͲincometrendsrequireastablemethodology overtimethathassimilarresponsepatterns.WiththenewmethodologyoftheNHS,estimatesoflowincomearenot comparablewiththecensusͲbasedestimatesproducedinthepast.”Source:http://www.statcan.gc.ca/dailyͲ quotidien/130911/dq130911aͲeng.htm

7  3. RuralEasternOntariohasLowerAverageandMedianPersonalEarningsthan Ontario   x NHS2011:AsmeasuredbytheNationalHouseholdSurvey(2010taxyear),theaveragepreͲ taxpersonalearningsofresidentsofallcountiesinRuralEasternOntario($38,317)were, onaverage,nearly$4,000/yearlessthanfortheProvinceasawhole($42,264).This amountstomorethan$330/month.Onacountybycountybasis,thedifferenceinearnings rangedfrom$1,100/yearto$11,000/yearlowerthantheOntarioaverage(seegraphon followingpage).Thedifferenceinearningsisevenmorepronouncedincomparisonsto eitherToronto($44,517)orOttawa($49,826).  Thefinancialresourcesfromwhichwageearnerspaytheirmunicipalpropertytaxesare thereforelessinRuralEasternOntariothanfortheprovinceasawholeandlessthanin majorurbancentres.  Asimilarphenomenonisinevidenceformedian2personalearnings:theregionalmedianfor RuralEasternOntariois$28,241,whichismorethan$2,200ayearlowerthanforthe provinceasawhole($30,526)andfarlowerthanOttawa($39,530).RuralEasternOntario’s medianpersonalearningsareslightlyhigherthanToronto($27,371).  Thismeansalargershareofresidentearnersarepayingtheirpropertytaxesfromasmaller paychequethanforwageearnersacrosstheprovinceasawhole.  x Census2006:Beforetherecession,medianpersonalearningswereroughly$7,000ayear lowerinRuralEasternOntario($22,683)thantheprovincialaverage($29,335).Theregion’s medianpersonalearningswerealsoconsiderablylowerthaninOttawa($34,908)or Toronto($28,675).  Notethatduetomethodologicalchangesbetween2006and2011,comparisonsbetween thosetwoperiodsareinappropriate.Onlycomparisonswithinthesameperiodare appropriateandeventheseshouldbetakenasgeneralindicationsofpatternsratherthan preciseresults.  Thesedatasuggestthatregardlessoftimeperiod,membersofthelabourforceinRuralEastern OntariohavelowerpersonalearningsthantheircounterpartsinmanyotherpartsofOntario particularlytheCityofOttawa.Thispatternappearstohavepersistedthroughtherecession. Thesedatasuggestthattherurallabourforcestillremainschallengedtofind(ordonotqualify for)jobswithassociatedhigherratesofpay.Further,thedatasuggestthattherurallabour forcewouldnothaveasmuchdisposableincomewithwhichtopayrentoramortgagefora home–orpropertytaxes. 

 2Medianearningsrepresentthepointbelowwhichtheannualearningsof50%ofindividualsearningemploymentincomein thatcommunityfall.Forthepurposeofcalculatingaregionalmedian,aweightedaveragewascalculatedbasedonthenumber ofearnersineachcountytimestherelevantmedianearnings;thesecountydatawereaddedwiththetotalbeingdividedby thetotalnumberofearnersintheruralregion.

8  Figure2ͲAveragePersonalEarnings(2011NHS)ͲRuralEasternOntariocomparedtoOntario,OttawaandToronto

  Figure3ͲAveragePersonalEarningsandMedianPersonalEarningsfor2010TaxYear,byCountyandcomparedtoOntario, OttawaandToronto



9  Figure4ͲMedianPersonalEarnings(2005TaxYear)–RuralEasternOntariocomparedtoOntario,OttawaandToronto



10  4. RuralEasternOntarioHasLowerAverageandMedianHouseholdIncomes thanOntario  x NHS2011:AsmeasuredbytheNationalHouseholdSurvey(2010taxyear),theaveragepreͲ taxhouseholdincomeinRuralEasternOntario($75,202)wasroughly$10,000ayearlower thanfortheProvinceasawhole($85,772).Thisamountstomorethan$830/month.The differenceinincomeisevenmorepronouncedincomparisontoeitherToronto($87,038)or Ottawa($96,815).OnacountyͲbyͲcounty,basis,thedifferenceinearningsrangedfrom $4,000/yearlowerto$18,000/yearlowerthantheOntarioaverage.  Onaverage,thefinancialresourcesfromwhichhouseholdspaytheirmunicipalproperty taxesarethereforelessinRuralEasternOntariothanfortheprovinceasawholeandless thaninOttawa.  Asimilarphenomenonisinevidenceformedianhouseholdincome:theregional3median4 householdincomeforRuralEasternOntariois$62,909,whichismorethan$3,000lower thanfortheprovinceasawhole($66,358)andfarlowerthanOttawa($79,634).Rural EasternOntario’smedianhouseholdincomeappearstobeslightlyhigherthanthatof Toronto($58,381).  Thismeansalargershareofresidentearnersarepayingtheirpropertytaxesfromasmaller householdincomestreamthanacrosstheprovinceasawhole.  x Census2006:Inthe2006census,medianhouseholdincomes(2005taxyear)wereroughly $7,000ayearlessinRuralEasternOntariothanacrossOntarioasawhole:$53,261 comparedto$60,455.MedianhouseholdincomeinRuralEasternOntarioisalso considerablylowerthaninOttawa($69,743)butjustabovethatofToronto($52,833).  ThesedatasuggestthatmembersofthelabourforceinRuralEasternOntariostillhavelower householdincomesthantheircounterpartsintherestofOntario,includingOttawaand Toronto.Thesedatasuggestthattherurallabourforcestillremainschallengedtofind(ordo notqualifyfor)jobswithassociatedhigherratesofpay.Further,thedatasuggestthattherural labourforcewouldnothaveasmuchdisposableincomewithwhichtopayrentoramortgage forahome–orpropertytaxes.

 3Forthepurposeofcalculatingaregionalmedian,aweightedaveragewascalculatedbasedonthenumberofhouseholdsin eachcountytimestherelevantmedianhouseholdincome;thesecountydatawereaddedwiththetotalbeingdividedbythe totalnumberofhouseholdsintheruralregion. 4Medianearningsrepresentthepointbelowwhichtheannualearningsof50%ofindividualsearningemploymentincomein thatcommunityfall.

11    Figure5ͲAverageHouseholdIncome,MedianHouseholdIncomeforRuralEasternOntario,(2010taxyear)byCounty, comparedtoOntario,OttawaandToronto

   Figure6ͲAverageHouseholdIncome(2010TaxYear)ͲRuralEasternOntariocomparedtoOntario,OttawaandToronto

  

12  Figure7ͲMedianHouseholdIncomeͲ2006Census(2005taxyear)–RuralEasternOntariocomparedtoOntario,Ottawaand Toronto

  

13   5. LowerRelianceonEmploymentIncomeinRuralEasternOntario  x 2011NHS:RuralEasternOntariodrewroughly67.3%5oftotalincomefromearnings– muchlowerthanOntarioasawhole(74.8%).Thedifferenceisroughly7%lowerreliance thanacrosstheprovince.InOttawa,residentsdrewevenmoreoftheirincomefrom earnings(76.2%).Toronto’sabilitytodrawincomefromearnings(76.1%)wasslightlyabove theprovincialrate.OnacountyͲbyͲcountybasis,thepercentageofincomefromearnings variedfromalowof55.4%toahighof75.3%.Twelveofthe13EOWCmember communitiesarebelowtheprovincialaverageonthismeasure.  x Atthesametime,RuralEasternOntario’srelianceongovernmenttransfers6(15.4%)is higherthanforanyoftheprovinceasawhole(12.3%),Ottawa(8.6%)orToronto(11.5%). AllEOWCmembersareatorabovetheprovincialaverage(greaterreliance)onthis measure.  Figure8ͲRelianceonEarningsandGovernmentTransfersasSourceofIncomeͲRuralEasternOntariocomparedto Ontario,OttawaandToronto

 

 5Thisisaweightedaverageofthepercentagesofincomefromearningsfromeachcountywithweightingbythe relativenumberofpersons15yearsandoverwithincomeandthepercentageofincomefromearnings 6ThisformofincomeincludesCPP/QPP,OASpensionsandGIS,EmploymentInsurancebenefits,childbenefitsand othersourcesofgovernmentincome.Itdoesnotincludeinvestmentincomeorincomefromretirementpensions, superannuationorannuities.

14   x 2006Census:Basedon2005taxyeardata,RuralEasternOntariodrewroughly70.1%of totalincomefromearnings–muchlowerthanOntarioasawhole(77.4%).Thisis7%lower reliancethanacrosstheprovince.InOttawa,residentsdrewevenmoreoftheirincome fromearnings(77.7%).Toronto’sabilitytodrawincomefromearningswasidenticaltothe provinceasawhole(77.4%).OnacountyͲbyͲcountybasis,thepercentageofincomefrom earningsvariedfromalowof58.2%toahighof77.8%.  Thissuggeststhatruralresidentsweremorereliantonotherformsofincome–government transfersforexample–thanaretheirurbancounterparts.  x Infact,RuralEasternOntario’srelianceongovernmenttransfers(12.8%)washigherthan foranyoftheprovinceasawhole(12.3%),Ottawa(7.3%)orToronto(9.2%).Everycounty inRuralEasternOntariowasmorereliantongovernmenttransfersthantheprovinceasa whole.  Figure9ͲRelianceonEarningsorGovernmentTransfersasSourceofIncomeͲRuralEasternOntariocomparedto Ontario,OttawaandToronto(2005TaxYear)



15  6. ModestGrowthinPopulation,HouseholdsProjectedforRuralEastern Ontario  x By2020,thepopulationofRuralEasternOntarioisprojectedtoreach825,816.Thisisbased ontheaverage(censusbased)6.3%growthrateacrosstheregionbetween2006and2011. Populationgrowthintheruralregionisexpectedtofollowaverysimilargrowthtrajectory tothatoftheCityofOttawa,whichappearstohavegrownby5.7%duringthe2006Ͳ2011 period.  Figure10ͲPopulationandPopulationGrowthProjectionforRuralEasternOntarioto2020,comparedtoOttawa

  TheseprojectionssuggestthatRuralEasternOntariowillcontinuetoseemodestincreases inpopulationandwillnotexperiencepronounceddepopulationofitscountiesashasbeen observedinsomeotherrural/remoteareas.However,dependingonthestructureof households(e.g.numberofpersonsperhousehold,numberofemployedpersonsper household),thefinancialstrainofcontinuedincreasesinpropertytaxesmayremain prevalent.Inparticular,theproportionofhouseholdsreliantonfixedincomesratherthan employmentincomeislikelytoconstrainratepayers’abilitytoaffordpropertytaxes associatedwithhomeownership–especiallyifthetaxbaseinRuralEasternOntario remainsdependentonresidentialpropertytaxassessment. 

16   Figure11ͲProjectedGrowthinHouseholdsinRuralEasternOntario,comparedtoCityofOttawa

  NumberofHouseholdsGrowingMoreSlowlythanPopulation,IncreasesPropertyTax Burden  NotethatthegrowthrateinhouseholdsinRuralEasternOntariofrom2006to2011was 4.2%–roughlytwoͲthirdsoftherateofpopulationincrease(6.3%)(Seetableonfollowing page).Withmunicipalservicesfundedveryheavilyfromresidentialpropertytax assessment,propertyownersinRuralEasternOntariowillcarryanincreasinglylarge burdenformunicipalservicesandinfrastructuremaintenance.Theresimplyisn’tsufficient commercial,industrialorinstitutionaltaxassessmenttoshouldertheincreasingcostsof servicedelivery.

17  Figure12ͲHistoricalandProjectedPopulationͲRuralEasternOntario

 Figure13ͲHistoricalandProjectedPopulationͲRuralEasternOntario

 

18    7. HigherProportionofElderlyPersonsinRuralEasternOntario   x Betweenthe2006and2011census,theproportionofcitizensaged65andoverinRural EasternOntariohasrisenbymorethanafullpercentagepoint,increasingfrom16.9%to 18.1%.RuralEasternOntariohasasignificantlyhigherpercentageofitscitizensaged65 andolderthantheprovinceasawhole(18.1%fortheruralareascomparedto14.6%for Ontario).ThepercentagefortheCityofOttawaisconsiderablylowerat13.2%.  x Theproportionofelderlypersonsisslightlyhigherintheseparatedcitiesandtowns:17.8% climbingto18.8%ofthetotalpopulationin2011,buttherateofincreaseislessthaninthe ruralareas(1.0%comparedto1.2%).TheCityofOttawahasseenamoremodestincrease inelderlypopulation–from12.4to13.2%(achangeof0.8%).Inthesameperiod,the percentageofelderlypersonsacrosstheProvinceofOntariorosefrom13.6to14.6%–a ratewhichmatchedthatoftheseparatedcities.  x Whenconsideredincombinationwithrelativelylowerincomesinruralareas(seepreceding section),thedatasuggestthatseniorsmayhaveparticulardifficultyinpayinghigher propertytaxes,whicharebasedonthevalueofanilliquidasset(theirhome)ratherthan theirincomes.  x Sinceelderlypersonsarelesslikelytobeinthelabourforce,thissuggeststhattherewould beahigherproportionofresidentsinRuralEasternOntariothatwouldbeonfixedincomes (e.g.pensions)andtheymayfinditmoredifficulttocoverthecostsofmaintainingtheir homes.  x Ifthenumberofpersons65plusgrowsthroughto2020atthesamerateasitdidinthe 2006Ͳ2011censusperiod,RuralEasternOntariowillhavecloseto170,000seniorsby2020 (20%oftheentirepopulation).Inabsolutenumber,thiswouldbealargerelderly populationthanintheCityofOttawa(projectedtobe149,284).Thisisbecausethe projectedgrowthrateoftheregion’sseniorpopulationishigherinRuralEasternOntario thantheprojectedgrowthinthegeneralpopulation(13.3%in5yearscomparedto6.3%in 2006Ͳ2011).

19  Figure14ͲNumberofPersonsAged65andOlderinRuralEasternOntario(2006,2011Census),comparedtoOttawa

   Figure15ͲPersonsAged65andOlder,bySubͲRegion,2011Census,2006Census,ComparedtoProvincialAverage



 Figure16ͲAgeDistributionbySubͲRegionͲSource:2006Census



20    8. HighLevelsofHomeOwnershipinRuralEasternOntario  x 2011NHS:HomeownershipisquitehighinRuralEasternOntario–84%ofdwellingsare ownedratherthanrented.Homeownershipisconsiderablyhigherthantheprovincial averageforOntario:71%.Thisispresumablyduetothegreaterprevalenceofrental accommodationinurbanareas.Forinstance,thelevelofhomeownershipislowerinthe separatedcitiesandtownsofEasternOntario(63%),intheCityofOttawa(66%)andin Toronto(55%).  Figure17ͲHouseholdCharacteristicsͲByCountysource:NHS2011

 

21  9. ValueofOwnedDwellingsisSignificantlyLowerinRuralEasternOntario  x 2011NHS:OnacountyͲbyͲcountybasis,themedianvalueofdwellingsin2011waslowerin allcasesthantheprovincialmedianvalue($300,862),withtheruralvaluesrangingfrom $194,690to$250,841.Theregionalmedianvalueforprivatedwellingsacrosstheentire rurallandscapeofEasternOntarioisestimatedtobe$232,925–morethan$60,000less thanforOntarioasawhole($300,862).ForOttawa,themedianvalueisconsiderably higher($349,151)andforToronto,higherstill($401,400).AllcountiesinRuralEastern Ontariohavealowermedianvalueofdwellingsthantheprovincialaverage.  Thesedatadonotautomaticallymeanthatruralresidentswillhaveaneasierormore difficulttimeaffordingtheirpropertytaxes;municipalgovernmentssettheirtaxratesto generatetherevenueneededtocovertheirserviceprovisioncosts.Rentsandmortgage paymentsmaybeslightlylowerifthepurchasepriceofahomeislower–dependingon availabledownpaymentsandinterestrates.Asubsequentsectionofthisreportprovidesa morecomprehensiveviewofthecostoflivinginruralcommunities.  Figure18ͲMedianValueofDwellings,ByCountycomparedtoOntario,OttawaandToronto.Source:2011National HouseholdSurvey

  x 2006Census:TheaveragevalueofowneddwellingsinRuralEasternOntario,when calculatedonaweightedaveragebasis,was$216,173,considerablylowerthanforOntario asawhole($297,479),Ottawa($292,718)orToronto($413,574).

22   10.HigherPercentageofRuralEasternOntarioHomesinNeedofMajorRepair  x 2011NHS:Accordingtothe2011NationalHouseholdSurvey,therewerenearly24,000 privatedwellings(homes)inneedofmajorrepair7.Thisismoreinabsolutetermsthanin theOttawa(21,835).AsapercentageofalldwellingsinRuralEasternOntario,8.2%is higherthanacrossOntario(6.6%),inOttawa(6.2%)orToronto(7.8%).Theprevalenceof homesneedingrepairvariesbycountyacrossRuralEasternOntario,butinallcasesisator abovetheprovincialaverage.  Thesedatasuggestthathomeownershaveamoredifficulttimemaintainingtheirhomes thanacrosstheprovinceorinthemajorurbancentres.Ifthisisthecase,itsuggeststhat thereisnotenoughincometocarryoutmajormaintenanceorperhapstocovertheother costsofhomeownership–oneofwhichisannualpropertytaxes.  Figure19ͲPrivateDwellingswithMajorRepairsNeeded,byCounty,RegionandcomparedtoOntario,Ottawaand Toronto

 

 7NationalHouseholdSurveyresultsdonotdefine“majorrepair”otherthantosaythatneithertheminorormajor repairsincludedesirableremodellingoradditions.Itisunderstoodthattheassessmentofstateofrepairofa dwellingismadebytheoccupant.

23   x 2006Census:Thesamepatternofhomesinneedofmajorrepairwasevidentin2006.Of the277,435privatedwellings“occupiedbyusualresidents”inRuralEasternOntario,11.4% (roughly31,500dwellings)weredescribedas“requiringmajorrepair”inthe2006Census. Thispercentagewasconsiderablyhigherthanthepercentageacrosstheprovince(6.6%),in Ottawa(6.3%)orinToronto(7.8%).Thesedatasuggestthatevenbeforetherecession, homeownersinRuralEasternOntariowerehavinggreaterdifficultymaintainingtheir homesthanacrosstheprovinceorinthemajorurbancentres.  x Itisnotclearthattheneedforrepairisrelatedtotheageofhousingstock.Infact,thedata suggeststhattheneedformajorrepairsisnottheresultofoldstockbutismorelikely relatedtoloweroverallincomes.  Comparedtotheprovinceasawholeoritsurbancounterparts,RuralEasternOntariodoes nothaveespeciallyoldhousing:60%ofRuralEasternOntario’shousingstock(2006: 166,465dwellings)wereconstructedbefore1986(andisnowmorethan25yearsold). AcrossOntario,thepercentagewas69%.InOttawa,thepercentageofolderhousingwas 67%;inToronto,olderstockis81%ofthetotal.  Figure20ͲPercentageofPrivateDwellingsConstructedBefore1986(2006Census)ͲRuralEasternOntariocomparedto Ontario,OttawaandToronto

 

24  11.SkewedAssessmentBasePutsPressureonResidentialRatepayers  x TherelianceoflocalgovernmentsinRuralEasternOntarioonresidentialassessment (ratherthanastrongpresenceofcommercial,institutionalandindustrialassessment)has becomemoreprominentoverthe2002Ͳ2011period,risingfrom85.8%to89.1%oftotal assessment(increasedrelianceof3.3%).(ThesedataarebasedonFIRsprovidedby individualmunicipalities.)  x Inthesameperiod,relianceonresidentialassessmentintheseparatedcitiesandtowns roseslightlyfrom78.0to78.3%.TheCityofOttawasawdecreasedrelianceonresidential assessment,droppingfrom78.4%to77.2%.Inotherwords,acrossvirtuallyallofEastern Ontario–otherthanOttawa,relianceonresidentialassessmentincreasedoverthepast decade.  Figure18ͲPercentageofRuralEasternOntarioTaxBaseThatisResidential

   11.1RegionalRelianceonResidentialAssessmentProjectedtoIncreaseto2020  IfthereliancetrendinRuralEasternOntariointhe2007Ͳ2011periodcontinuesthroughto 2020(increasingby0.3%ayear),thesemunicipalitieswillsee91.5%oftheirassessmentbeing residentialbytheendofthedecade.Thismeansthatanevenlargershareofthecostfor deliveringlocalserviceswillbebornebyresidentialpropertyownersortenantsinapartments.  By2020,nonͲresidentialassessmentinRuralEasternOntarioisprojectedtodropto8.5%of totalassessment,downfrom14.2%in2002.Thiswouldberoughlyathirdoftheproportionof theseparatedcitiesandtownsinRuralEasternOntario.NonͲresidentialassessmentisexpected tovirtuallyidenticalin2020asitwasin2011($8.85billion).  

25  Figure19ͲPercentageofTotalAssessmentthatisResidential

   11.2RuralEasternOntarioMoreReliantonResidentialAssessmentthanProvinceasaWhole  x ComparingRuralEasternOntario’srelianceonresidentialassessmenttoOntarioasawhole requiresuseofMPACdataratherthanFIRs.MPACdataforTaxYear2012(2011Roll)8was usedtocomparethesourceofassessmentsonaregionͲtoͲprovincebasis.  MPACdatashowthat: x Commercialandindustrialassessmentscombinedarejust6.3%oftheRuralEastern Ontario’assessmentbase(comparedto16%fortheprovinceasawhole). x Farmlandandmanagedforestaccountfor5.2%oftheRuralEasternOntarioassessment base(butarenotfullytaxable).Theprovincialaverageis2.3%. x RuralEasternOntarioisheavilyreliantonresidentialassessment(84.2%).  x ThecomparativedatafromMPACforRuralEasternOntarioandtheProvinceofOntario showsthatacrosstheprovince,75%oftotalassessmentisresidential.RuralEasternOntario canthereforebeconsideredtoberoughly10%morereliantonresidentialassessment thantheprovincialaverage.  

 8Thepercentageoftotalassessmentfromresidentialassessmentisdifferentwhenusing2011FIRdataascomparedto2012 MPACdata.ThereappearstobesomevariationinhowmunicipalitiesshowassessmentforparticularclassesintheirFIRs, reflectingtheproportionofcertainlandsthatarenotfullytaxable.MPACassessmentdataisunderstoodtobebasedonthe propertyvaluationsnottaxablestatus.

26  Figure20–DistributionofAssessmentbyType–RuralEasternOntario:Source–MPACData TypeofAssessment %2011for Assessment 2012TaxYear ($Billions) Commercial 5.1 $4.72 ShoppingCentresandParkingLots 0.2 $0.208 Exempt 3.7 $3.48 Farm 4.8 $4.45 Industrial 0.9 $0.804 ManagedForest 0.3 $0.234 Pipeline,RailwayandUtilities 0.9 $0.818 MultiͲResidential 0.8 $0.759 Residential 83.4 $77.9 Total–AllTypes 100 $93.4 

27  12.MedianShelterCostsinRuralEasternOntarioGenerallyLower  x 2011NHS:Themediansheltercost9forowneddwellingacrossRuralEasternOntario10is $865amonth,roughly$330/monthlessthanacrossOntarioasawhole($1,163/month). Thisislikelyduetothelowervalueofhomesintheruralareaswhichwouldreduce financingrequirements.Onacountybycountybasis,thereisconsiderablevariabilityacross theregion–fromalowof$615/monthto$1,110/month.  Figure21ͲMedianShelterCosts,byCounty,comparedtoOntario,OttawaandToronto.Source:2011National HouseholdSurvey

  x 2006Census:In2006,themedianmonthlypaymentforownerͲoccupieddwellings(typically amortgage)was$717inRuralEasternOntario,considerablylessthanintheCityofOttawa: $1,151.  x Themedianmonthlypaymentforrenteddwellingswas$636inRuralEasternOntario, considerablylessthanintheCityofOttawa($849).   9SheltercostsforownerͲoccupiedhouseholdsinclude,whereapplicable,themortgagepayment,thecostsof electricity,heat,waterandothermunicipalservices,propertytaxesandcondominiumfees.TheCanadianaverage sheltercostin2011forownedpremiseswas$1,141. 10Theregionalmediansheltercostforowneddwellingswascalculatedbyusingaweightedaverageoftheshelter costsforeachcounty,withtheweightingfactorbeingthenumberofownerͲoccupiedprivatehouseholds.

28  13.RuralEasternOntarioWorkforceHasLonger,MoreExpensiveCommute  x 2011NHS:Accordingtothe2011NationalHouseholdSurvey,themediancommutingtime toworkforresidentsofRuralEasternOntariorangesfrom16minutesto30minutes dependingonlocation.Theseresultsclusteraroundtheprovincialaverage(21minutes). Whenaregionalmediancommuting Figure22ͲMediancommutingtimeͲRuralEasternOntario timeiscalculated,theregional comparedtoOntario,OttawaandToronto averagetracksboththeprovincial averageandthemediancommutefor Ottawaquiteclosely.  However,alljurisdictionsinRural EasternOntariohavelongermedian commutingtimesthantheirnearest urbancounterparts(seeexamplesin chartbelow)anddonothaveaccess topublictransitformost,ifnotall,of theircommutingdistance.Inother words,ruralresidentsarelikelytobe commutinglongerandatgreatercost thantheirurbancounterparts.  Typicallyruralworkersusetheironly availablemeansoftransportationͲͲͲ theautomobileͲͲͲandareincurring additionalcoststodoso.Thereis somereasontothinkthevoluntary NHSunderestimatescommutingtime,  distanceandassociatedcostsforrural workers.Lowresponseratesinmanyruralmunicipalities–especiallythosefurtherfrom urbancentres–leadstodatasuppressionandunderͲrepresentationofworkersinmanyof thesmallest,mostruralmunicipalities.  Jurisdiction MedianCommutingTime MedianCommutingTime RuralArea(minutes) UrbanArea(minutes) Frontenac 25.8–SouthFrontenac 15.5ͲKingston 40.1–FrontenacIslands Hastings 25.1–Tyendinaga 15.1–Belleville 25.5–CentreHastings 15.8–QuinteWest 25.6–StirlingͲRawdonandTweed Lanark 21.9–Lanark 12.5–SmithsFalls LeedsandGrenville 23.2–LeedsandGrenville 10.7– 15.6Ͳ Peterborough 16.7ͲPeterborough 15.1–Peterborough(City) Renfrew 16.4–RenfrewCounty 10.8ͲPembroke Stormont,Dundasand 18.7–Stormont,Dundasand 10.8ͲCornwall Glengarry Glengarry

29  Distancemattersasmuchastime:BasedonCanadaRevenueAgencymileageratesforthe 2003Ͳ2013period,andassumingthatatypicalfullͲtimeemployeeistravellinganadditional 30kilometresroundͲtripperday(15kmseachway),thatpersonislikelytobeincurringan additional$3,500to$4,000ayearincommutingcostscomparedtotheirurbanneighbours. Thiswouldincludeadditionalfuelcostsandmorefrequentmaintenanceonvehiclesthat aremoreextensivelyused.Insurancecostsmayalsobehigherandmoreruralworkersmay havetopaymonthlyparkingattheirworkplace.Theadditionalcostsforlongercommutes areestimatedtoberoughly$325/month.  Figure23ͲAdditionalTransportationCostsIncurredbyRuralEasternOntarioLabourForceͲSource:CRAMileageRates

  x 2006Census:Mediancommutetimeestimatesappearedforthefirsttimeinthe2011NHS. Previously,theCanadiancensusincludedquestionsaboutworklocation(whetherornot residentsworkinthesamemunicipalityorthesamecensusdivisionorcounty.Thishas beenusedasaproxyforamunicipality’sabilitytocreateemploymentclosetohome, therebyreducingcommutingtimeanddistance.  The2006censusshowedthatamuchhigherproportionoftheworkforceiscommutingtoa differentmunicipality:52%comparedtotheprovincialaverageof32.6%.Forthemostpart, thisphenomenonwasdrivenbytheruralworkforcecommutingtonearbyurbanareasfor employment.However,theflowofthelabourforceisinonlyonedirection.Ottawaisa strikingexampleofanurbanareathatprovidesemploymenttonearbymunicipalitiesbut doesnotshowapatternofurbanresidentscommutingtoworkinanother(rural) municipality.Inthiscase,only1.6%ofOttawa’sworkforceisworkinginadifferent municipalityorcensusdivision.Inadditiontoinfluencingcommutingdistancesand associatedcosts,thispatternisamajorcontributortotherelianceofruralareason residentialassessmentandthestrongerpresenceofcommercial,industrialandinstitutional assessmentinurbanareas.

30  Figure24–PercentageofLabourForceWorkingOutsideHomeMunicipality,bySubͲRegionandCounty,Comparedto OntarioandOttawa;Source:2006Census



31  14.RuralEasternOntarioResidentsLessLikelytoHavePostͲSecondaryEducation  x NHS2011:RuralEasternOntario’stotalcoreworkforceͲagedpopulation(25Ͳ64years)was388,830in2011.Ifaccurate,itwould suggestthattheagingpopulationcombinedwithoutͲmigrationofyouthandtosomeextent,migrationofsomemembersofthe labourforcetoWesternCanada,isconstraininglabourforcegrowth:thecorelabourforcenowaccountsfor55%oftotal population.In2006,thepercentagewas57%.However,giventhat22of93municipalitieswithinthe13ruralcounty/singletier regionhaddatasuppressionappliedtotheirresultsduetolowresponserates,itisnotclearifthereisawaningrepresentation ofthecorelabourforceinRuralEasternOntario.WhatisclearisthateducationslevelsareloweroverallinRuralEasternOntario thantheyareineitherOntarioasawholeorineitherOttawaorToronto.  x RuralEasternOntariohasasmallerproportionofitscorelabourforceinpossessionofcollegeoruniversityeducation(46.6%) thantheprovinceasawhole(57.0%)oreitherofOttawa(69.2%)orToronto(63.7%).  x RuralEasternOntarioismorelikelytohaveaskilledtradesͲeducatedworkforce(11.0%)thantheprovinceasawhole(7.8%)or hasdoublethestrengthofthistypeofworkforceofeitherofOttawa(5.5%)orToronto(5.2%).Infact,RuralEasternOntariohas alargerabsolutenumberofthesetypesofworkers(roughly42,000)thanOttawa(27,000).  x RuralEasternOntarioislesslikelytohaveauniversityͲeducatedworkforce(16.0%)thantheprovinceasawhole(28.9%)or eitherofOttawa(42.8%)orToronto(40.3%)  Figure25ͲEducationalAttainmentͲRuralEasternOntariocomparedtoOntario,OttawaandToronto

  x Thesedatasuggestthatwithoutsignificantattentiontoeducationandtrainingfortherurallabourforce,itwillbedifficultfor RuralEasternOntariotoclosetheearningsandincomesgapdescribedearlierinthisWhitePaper.Further,thelowerlevelsof earningsandincomes,combinedwithadditionaltransportationcostsfortravellingtoexistingpostͲsecondaryeducationclasses inperson,suggestthatruralresidentsarelesslikelytobeabletoaffordtraditionalformsofhighereducation.

32  Figure26ͲRuralEasternOntariocomparedtoOntario,OttawaandTorontoͲByCountySource:2011NationalHouseholdSurvey

  x 2006Census:Basedon2006censusdata,residentsofRuralEasternOntariohaveloweroveralllevelsofeducationalattainment (perhapsinpartduetotheslightlyolderpopulationwhomaynothavehadtheopportunityforpostͲsecondaryeducation).At 38.3%,theproportionofruralresidentswitheithercollegeoruniversityeducationwasslightlylessthanresidentsofthe separatedcitiesandtowns(41.6%)andwellunderthatoftheCityofOttawa(65.7%).  Whentradeseducationisaddedin,ruralresidentsstilllaggedtheircounterpartsintheseparatedcitiesandtowns(48.9% comparedto51.8%)withtheCityofOttawahavingaveryhighrateofanyofthesetypesofeducation:71.6%.  x ResidentsofRuralEasternOntarioweremorelikelythanthoseoftheCityofOttawatohaveacollegecertificateordiploma (21.1%);residentsofseparatedcitiesandtownswerethemostlikelytohavethistypeofeducation(24.4%).  x Comparedtotheprovinceasawhole,RuralEasternOntarioresidentsweremorelikelytohaveacollegecertificateordiploma thantheprovinceasawhole(23.5%comparedto22.0%)butlesslikelytohaveanyformofuniversityeducation(combined 14.8%comparedto31.7%).  

33  x Thesevariationsineducationalattainmentmaybedue,atleastinpart,totheslightlyolderpopulationintheruralareas(see earliersectionofthisreport)ortotheexodusofyoungpeoplefromtheirhomecommunitieswhentheydecidetoseekfurther education(forthemostpart,postͲsecondaryeducationinstitutionsarelocatedincitiesandtowns).Regardlessofthereason(s), lowerlevelsofeducationarelikelytolimitruralresidents’abilitytosecurerelativelyhighpayingemployment.Thisemployment limitationmaythereforereducethepopulation’sannualincomesandthereforetheirabilitytopaypropertytaxessufficientto payforvitalpublicservices(seeearliersectionofthisreport).  Figure27ͲEducationalAttainmentbySubͲRegionͲRuralEasternOntariocomparedtoOntario,OttawaandTorontoSource:2006Census

 

34  Figure28ͲEducationalAttainmentͲByCounty,Source:2006Census

    

35  15.TakingActiononRatepayerAffordability  Keepingmunicipalgovernmentaffordableforlocalratepayerswillrequirelocalgovernmentsto changethetrajectoryofbothservicedeliverycostsandtherevenuesavailabletopayforthese services(seeEOWCWhitePaperonMunicipalAffordability).Localgovernmentswillalsoneed tobecomemoreproactiveinsupportingtheeffortsoftheirownratepayerstoimprovethe economiccircumstancesoftheregion,itshouseholdsandbusinesses.ThisWhitePaper containsinformationwhichwillhelptoguidetheforthcomingregionaleconomicdevelopment strategyprojectbeingundertakenbytheEOWCinpartnershipwithotherregionalstakeholder groups.Thefollowingrecommendationscoversomeactionsthatlocalgovernmentsmighttake ontheirownorthroughtheEOWC,aswellasthosewhichmightbeundertakeninpartnership withupperlevelsofgovernment. RecommendationsforEOWCandConstituentMunicipalities: EͲ1:ItisproposedthattheEOWCcontinuetoactivelysupportthedevelopmentofaregionͲ wideeconomicdevelopmentstrategywiththelongͲtermobjectiveofstimulatinggrowthas wellasjobsacrosstheregion,whichwillinturnstimulategrowthintheregion’spropertytax base.Theultimategoalistoincreasetotalassessmentaswellastheproportionofassessment fromindustrial,commercialandinstitutionaloperations.(Thissamerecommendationisfound intheMunicipalAffordabilityWhitePaper). EͲ2:ItisproposedthattheEOWCcontinuetoworkwiththeprovincialandfederal governmentstobuildawarenessandutilizationoftheprovincial(permanent)EasternOntario DevelopmentFund(EODF)andprogramsofFedDevacrosstheregion.Inparticular,theEOWC willa)encourageutilizationoftheEODFSmallCommunity/Pilotfundingstreamforbusinesses thatfallbelowthe10Ͳemployeeminimumthreshold,andb)suggestopportunitiestoFedDev forfundingregionalinitiativesdesignedtostimulateprivatesectoreconomicactivityacross RuralEasternOntario. EͲ3:ItisproposedthattheEOWCcontinuetoencourageEORNtoinvestigateandprovide leadershiptodeploymentofnew,internetͲbasedtechnologiesbysmallandmediumͲsized businessesincludingbutnotlimitedtoagriculture,forestry,manufacturingandfabrication, construction,informationcommunicationstechnology(ICT),transportation&logistics,health care,education,andtourism.Increasedutilizationoftheregionalbroadbandnetworkfor businesspurposesisexpectedtoexpandmarkets,increaseprivatesectoreconomicactivity, createjobs,andultimately,increasenonͲresidentialassessment. EͲ4:ItisproposedthattheEOWCactivelysupportthedevelopmentofanintegratedregional transportationand(nonͲtraditional)transitsysteminRuralEasternOntariotoincreaseaccess tomarketsinandoutsidetheregion,aswellasimprovingcostͲeffectivenessofworkforce commutesinandoutoftheregion.Enablingtheworkforcetogetbackandforthtoworkina costͲeffectivewayisexpectedtoincreaseemploymentandrelatedearnings.  

36  EͲ5:ItisproposedthattheEOWCactivelysupportthedevelopmentofinͲregionanddistance educationandtrainingopportunitiestoenhancetheeducationandskilllevelsoftheregion’s populationandworkforce,therebyenhancingtheabilityoflocalresidentstofindemployment andincreaseearnings.  EͲ6:ItisproposedthattheEOWCadvocateforreinstatementofthefederalHomeRenovation TaxCredit–especiallyforenergyefficiency,andthecontinuationandextensionofthe provincialHomeRenovationTaxCreditforseniorsandfamilymemberslivingwiththem.Itis furtherrecommendedthatthesetaxcreditsbefocusedonlowͲincomeownerͲoccupied households.  EͲ7:ItisproposedthattheEOWCactivelysupportthedevelopmentofaregionalyouth retentionandreͲattractionstrategythroughwhichtoincreasetheoverallsizeofthelabour forceinRuralEasternOntarioandcontributetosuccessionplanningforlocalenterprises.  EͲ8:ItisproposedthattheEOWCadvocateforadditionalfinancialsupportforaffordable housinginitiativesthatwouldreducetheneedforresidentstomovetourbanareasforthese typesofaccommodations.  RecommendationsfortheProvinceofOntario:  UͲ1:ItisproposedthattheProvinceofOntarioprovideEasternOntariomunicipalitiesthat havesignificantCrownlandsorotherlandswithassessmentconstraints(e.g.managedforests, farmland,aggregatesitesetc.)intheirjurisdictionswithcompensationreflectingthese propertyͲbasedlimitations.ThecompensationcouldbeaPaymentͲinͲLieuoranannualshareof revenuesaccruingtotheProvincefromtheselands(e.g.royaltiesfromstumpagefees).This compensationwouldbeinrecognitionoftheserviceprovidedbymunicipalitiesinbuildingand maintainingroadsandbridges,andprovidingemergencyservicesforthesetaxͲexemptlands. [ThissamerecommendationisfoundintheMunicipalAffordabilityWhitePaper] UͲ2:ItisproposedthattheEOWCcontinuetoworkcooperativelywithprovincialandfederal authoritiestoobtainanagreementrelatedtotheAlgonquinlandclaim.Onceanagreementis inplace,itisproposedthattheEOWCworkcollaborativelywithintheAlgonquinNationto identifyandpursueopportunitiesforeconomicdevelopmentbenefitingtheAlgonquinsandthe regionasawhole.[ThissamerecommendationisfoundintheMunicipalAffordabilityWhite Paper]. UͲ3:ItisproposedthattheEOWCencourageandsupporttheProvinceofOntarioinits continuedeffortstocontainthegrowthinprogramandservicedeliverycosts,includingthose thataremandatedtomunicipalgovernment(examples:policingcosts).Itisfurtherproposed thattheEOWCencouragetheProvincetoengagemunicipalitiesandtheEOWCinprocesses whichwillaffectservicesmandatedtomunicipalgovernment. 

37  UͲ4:ItisproposedthattheEOWCworkwithAMOandtheProvinceofOntariotodevelopa strategywhichwouldallowandencouragelocalgovernmentstointroducenonͲtaxͲbased revenuegeneratingmeasurestomaketheirmunicipalitiesmorefinanciallysustainable.The firstprioritycouldbeanexaminationofwaystoleverageexistingmunicipalassetstoprovide newrevenuestreams(examples:outstandingPOAmonies;perͲtonchargeforaggregates). [ThissamerecommendationisfoundintheMunicipalAffordabilityWhitePaper]. UͲ5:ItisproposedthattheProvinceofOntariobroadenitscommitmenttoworkwith municipalitiesonrenewableenergydevelopmenttoincludedeterminationofappropriate propertytaxratesforalltypesofrenewableenergy,notjustwindturbinetowers.Thisisan essentialcompaniontotheproposedchangestotheFeedͲinͲTariff(FITProgram)whichare intendedtoengagemunicipalitiesandAboriginalcommunitiesinlocationandsitingdecisions, andprovidingnewenergyͲrelatedeconomicdevelopmentandrevenueopportunitiesfor municipalitiesandpublicsectorentities.[ThissamerecommendationisfoundintheMunicipal AffordabilityWhitePaper]. UͲ6:ItisproposedthattheEOWCworkwithAMOandtheProvinceofOntariotodetermineif therearealternative,costͲeffectivewaystodeliverservicesatthelocallevel,andseek opportunitiesforpilotprogramsthroughwhichthesealternativesmightbetestedonacostͲ sharedbasisinRuralEasternOntario.[ThissamerecommendationisfoundintheMunicipal AffordabilityWhitePaper]. 

38