70 PINE STREET, BRACEBRIDGE, ONTARIO P1L 1N3 Telephone (705) 645-2231 Fax (705) 645-5319 1-800-461-4210 (705 area code) www.muskoka.on.ca TO: Chair and Members Muskoka District Council FROM: Jim Green Chief Administrative Officer DATE: March 1, 2013 SUBJECT: The District Municipality of Muskoka Submission to the Province of Ontario Dispelling the Myth and Closing the Gap REPORT NO: 3(2013)-1 ____________________________________________________________________________ RECOMMENDATION THAT the report titled “The District Municipality of Muskoka Submission to the Province of Ontario - Dispelling the Myth and Closing the Gap” dated March, 2013, be submitted to the Premier of Ontario and other Ministers, as appropriate; AND THAT the District Chair request a meeting with appropriate provincial representatives and the Area Mayors to present and discuss the report; AND THAT copies of this report be circulated to the Area Municipalities and Norm Miller, MPP, Parry Sound - Muskoka. ORIGIN Services Review Recommendation CES-13 outlines the need for the completion of the Muskoka “gap” background paper in preparation for a meeting with the Province to discuss how Muskoka may better contribute to the social, health and economic fabric of Ontario, create jobs and address the needs of our citizens and businesses. The attached paper has been previously circulated to the members of Council for review and comment. ANALYSIS There has been much discussion about the challenges faced by, and within, the District of Muskoka as a result of its exclusion from provincial economic development regions, inequitable funding formulae in areas such as small waterworks and childcare, significant costs associated with the provision of hard and soft services such as roads and land ambulance, and implementation of legislation such as the Endangered Species Act. The discussion paper titled “The District Municipality of Muskoka Submission to the Province of Ontario - Dispelling the Myth and Closing the Gap” is attached as Appendix “I” and is intended to initiate a meaningful dialogue with the Province that would lead to a better understanding of Page 1 the economic realities in Muskoka and stronger municipal-provincial relationships that would be mutually beneficial to the people and economies of both Muskoka and Ontario. STRATEGIC PRIORITIES Strategic Priority 9 addresses the need to work with all orders of government … and to actively advocate for Muskoka with senior levels of government for programs and policies that will assist Muskoka to reach its goals. This submission would respond to this recommendation. Respectfully submitted, Jim Green Chief Administrative Officer Page 2 Appendix “I” THE DISTRICT MUNICIPALITY OF MUSKOKA SUBMISSION TO THE PROVINCE OF ONTARIO “Dispelling the Myth and Closing the Gap” March, 2013 Page 3 1. Introduction This discussion paper is prompted by the need for the District and Area Municipalities of Muskoka and the Provincial government to work together more efficiently. It is intended to initiate a meaningful dialogue that would lead to a better understanding of the circumstances in Muskoka and how stronger Municipal- Provincial relationships would be mutually beneficial to both the Muskoka and Ontario economies. Background information is provided that is intended to dispel the common misconceptions that Muskoka is a wealthy playground of the rich and famous and to demonstrate that year-round residents in Muskoka face the day-to-day struggles that exist elsewhere in northern and rural Ontario. On-going planning and consultation is needed in order to improve Muskoka’s economic and social health. Changes are being requested at the Provincial government level that would result in the inclusion of Muskoka in comprehensive economic development regions and programs that exist elsewhere in the province. These programs could build on the strengths of Muskoka to propel the economy forward and assist in the creation of living-wage jobs, investment in infrastructure and improvements to the quality of life of residents and visitors. Ultimately this would improve the economic health of the District, the Area Municipalities and the Province. 2. Muskoka’s People Muskoka’s population can be described as about 40% permanent and 60% seasonal and the characteristics of each of these groups is significantly different. The seasonal population is generally much more affluent, with their home in Muskoka being only one of at least two that they own. On the other hand, the permanent population experiences similar challenges in housing costs and day-to-day living as occurs in other parts of northern and rural Ontario. In this regard, over the last five years, the Ontario Works caseload in Muskoka has increased 95% from 526 in December, 2007 to 1020 in December, 2012. This is the highest caseload growth in any of the 47 upper-tier service providers (CMSMs or DSSABs) in Ontario and is expected to continue in 2013. Provincial average caseload growth in this same time period was 21% (Ministry of Community and Social Services, 2012). As well, there has been concurrent growth in the ODSP caseload in Muskoka, now approaching 1500 cases. The number of cases per 1000 population in Muskoka is 25.1, compared with a provincial average of 22.3 (Ministry of Community and Social Services, 2012). The number of children in social assistance families (ODSP or OW) peaked at over 1000 in the winter months of 2012. The wait list for families who are eligible for social/affordable housing programs has almost doubled in the 2007-2012 period (364 in December, 2007; 621 in December 2012). This growth occurred despite an increase in supply during that same period of 170 units (affordable housing / hostels / rent supplement agreements). The permanent population is older than the Ontario average, with 38% being over 55, compared to the Ontario average of 27%; and 22% being older than 65, compared with the Ontario average of 15% (Statistics Canada, 2011). In the 2013 Speech from the Throne, the Ontario Government indicated that an educated, skilled, and diverse workforce is Ontario’s greatest strength. In Muskoka, only 36% of the population has a post secondary education, compared with the provincial average of 43%. Year-round residents struggle to make ends meet on lower than average incomes and high housing costs, as outlined in the next section of this report. Page 4 3. Muskoka’s Economy The Muskoka Economic Strategy, 2008, identified a number of strengths from an economic development perspective. These include the natural landscape, resorts, recreational amenities such as golf courses and provincial parks and the “Muskoka” and “Georgian Bay” name. In addition, opportunities exist relative to the Highway 11 corridor, the Muskoka Airport and a supply of serviced urban lands. However, the strategy also identified a number of significant challenges, including a lack of economic diversification, rising assessment values, labour shortages, lack of affordable housing, lack of telecommunications infrastructure in rural areas and the high costs of developing road, water and sewer infrastructure. The strategy noted that much of the job growth in the area has been low paying and/or seasonal, the area lacks cultural diversity and affording a home is ever more difficult at increasing market values and low wage rates. In this regard, the tourism sector (much of which is part time and seasonal) employed 57% of the labour force in 2001 and this sector’s employment is projected to increase from 4,530 jobs in 2001 to 7,530 jobs in 2031, (Muskoka Economic Strategy, 2008). As a result, median earnings in Muskoka are only 78% of the Ontario average. Unemployment rates are also amongst the highest in the Province. MUSKOKA ONTARIO Median Household Income (2006) $52,790 $60,455 Median Earnings (2006) $22,985 $29,335 Median Earnings of full time, full year $38,201 $44,748 employee (2006) Unemployment rate (2006) 8.7% 7.9% Source: Statistics Canada, 2006 To compound the situation, Muskoka’s housing prices are disproportionately high in comparison with average incomes and the District continues to have one of the largest gaps between median household incomes and housing prices in the Province. Housing Type Costs Annual income Required Actual median for affordability incomes** Average non waterfront house price* $227,000 $53,000 $23,000 Average rent for 1 bedroom apartment* $740/month $28,000 (single earner) Average rent for 2 bedroom apartment* $870/month $34,000 $53,000 (household) More than half of Muskoka’s single person households or households where only one person is working (eg. single parent households) cannot afford to rent an apartment in Muskoka. * Source: CMHC ** Source: Statistics Canada, 2006 In addition to housing costs, monthly utility rates are also higher in Muskoka than in other municipalities, and colder, longer winters result in higher overall costs. Source: www.ieso.ca Page 5 4. Muskoka’s Physical Setting The District Municipality of Muskoka is located at the southern edge of the Canadian Shield and is approximately 4,761 square kilometers in size. It extends from Georgian Bay in the west to Algonquin Provincial Park in the east, and from the Severn River in the south to Novar in the north. The District’s landscape supports diverse ecosystems, including lakes, rivers, wetlands, forests, barrens and open fields. Interspersed in this natural setting are small to mid-size communities and rural and waterfront development. Muskoka’s population density is very low compared to other upper tier municipalities. Muskoka’s small towns are also widely dispersed, which has resulted in nine separate municipal water and wastewater treatment systems servicing very small populations. While the seasonal population represents significant strengths and opportunities in Muskoka, they also create the need for additional infrastructure expenditures in areas such as water and wastewater treatment. Increased investment in larger capacity infrastructure is required to meet the peak demands of the year, but use throughout the year is such that user rates for the permanent population are disproportionately high.