A new study by the Fraser Institute concludes promised taxpayer savings from municipal amalgamation never materialized.
The study, written by University of Windsor political science professor Lydia Miljan, looked at taxpayer rates, long-term debt and municipal employee compensation from 2000 to 2012 in the Town of Essex, Haldimand-Norfolk and Kawartha Lakes.
In 1995, there were 850 municipalities across Ontario. By 2000, there were 444. The number of municipal governments in Essex County went from 21 to eight.
Now, 15 years later, the prevailing wisdom is that amalgamation was haphazard and didn't reduce the burden on taxpayers. Property taxes in Haldimand increased 50% by 2012. In Kawartha Lakes, municipal employee compensation increased 52.8%, while in Norfolk, long-term debt rose 111%.
Chatham-Kent merited a footnote in the study because of its history of forced amalgamation. It predated the mass amalgamations across Ontario and was served as a stick to encourage voluntary amalgamations. Miljan says it explains why some municipalities like Essex ended up with their current configurations. She argues Essex ended up with what was left over after other municipal governments re-drew the map.
The paper describes the process in Essex as "shoddy," but Miljan says the township fared far better than other municipalities. "Despite the increase in recreation and long-term debt, Essex was able to hold the line on property taxes," says Miljan. "In the end, it probably made Essex a lot more modern."
While taxpayers paid more, the study does suggest rural residents realized some benefits in the long-term. "More professional staff, more professional services," Miljan explains. "So people are getting more from their municipal government, but they're paying for it."
Miljan says the study is the first of a series of research papers on municipal government. A second study, due in the next month, looks at the cost of de-amalgamation.