Ontario township claims bankruptcy with $2.5M in accumulated debt
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.
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.
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The municipality 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 it has repeatedly requested financial aid from the Ministry of Municipal Affairs and Housing but is yet to receive a substantive response.
As a result, all municipal employees will be laid off Aug. 1, 2025, representing 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 sudden halt of municipal services now threatens that momentum and raises deeper questions about the long-term viability of small northern communities.
'The temporary cessation of municipal services sends concerning signals,' the township's release reads, '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 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.
The township is calling on the province to step in urgently by appointing a supervisor or adminsitrator and providing emergency financial assistance.
'This represents the most difficult decision Council has ever had to make,' the statement said.
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