Comment
Read the signs
Every indicator of the County housing market is flashing red. Few new homes are rising out of the ground— none at all in Picton, Bloomfield or Wellington. Shire Hall is on track for its worst year of new homebuilding since the aftermath of the global financial crisis nearly two decades ago.
Meanwhile, new listings are outstripping home sales three to one. Not so long ago, homes moved within days of listing. No more. Maybe never again.
So, why is it that some council members continue to push for massive spending to bring water services to homes that aren’t coming? Unlikely ever to be built? Why do your representatives at Shire Hall insist on spilling your precious tax dollars on such folly? Why plough forward, digging the County’s debt hole ever deeper? Do they not see how fragile the County’s finances have become?
The evidence is there. Abundant and plain. In front of their eyes every day. Yet, some will continue to tell you the stories they’ve been spinning for five years—transformational growth is about to overwhelm Prince Edward County. (Sigh)
Nothing in the County’s history, its track record, or its prospects suggests such change is remotely likely. They’ve been telling this story for so long that they’ve come to believe it themselves.
Rather than spending money in anticipation of a wave of new homebuilding, they might consider hunkering down and cutting costs to better endure the current market downturn. It could be a long winter.
Just six new home permits were issued in July—adding pitifully to the 39 permits for single detached homes issued for the first six months in 2026. New homebuilding is grinding at its slowest pace since 2013. The market has spoken. Will Council listen?
Meanwhile, home resales ticked up slightly in July, driven mostly by uber high-end home purchases. Unique properties. Unique circumstances. The average sale price in July was roughly $764,000 in the County, but the median home changed hands for $660,000. That 16 per cent spread is the luxury segment talking, not the reality for most buyers or sellers.
Meanwhile, there are simply too many homes flooding the local market. While 222 homes traded hands in Prince Edward County so far in 2026, 713 new listings came on the market. A new supply of homes is arriving much faster than the market can absorb them.
No developer, no lender and no investor is sinking money in a market against such headwinds. So why are a handful of council members willing—eager in some of their comments—to bet many millions of your dollars on constructing a massive new Regional Water Plant in Wellington? For what?
Here is the thing. Wellington doesn’t need a new water plant. It may be many decades before it does.
No new homes can be built in Wellington because Shire Hall sold its remaining available waterworks capacity to a developer who is content to sit on its land. As it has done for 20 years now.
Wellington does, however, need an expanded sewage treatment plant. Doing so would free up fresh capacity for the day the market winds change—or, at a minimum, to permit those folks with single lots in the village to release their trapped land for a new home or two.
The good news is that the Federal government has agreed to invest $20 million to do just that.
Why won’t Shire Hall focus exclusively on that task? Why doesn’t Council direct management to abandon its big plans—that are going nowhere—and instead, zero in on expanding this one sewage treatment plant? Explore the alternatives? Scour the contracting marketpace for the best cost? Oversee contractors as if they were building your home? Deliver an infrastructure project on time. And on budget. Wouldn’t that be something? The way municipalities are meant to work?
Since amalgamation, Shire Hall leadership has, to a greater or lesser degree, imagined they were overseeing some grand transformation of Prince Edward County. Some envisioned Markham-by-the-Lake or Mississauga-styled services with wide boulevards and strip malls. They all hit a wall. It was always a twisted fantasy.
The attraction of the place, for a great many, was its affordability and the diversity of the community that a lower cost of living offered. But in the rush to exurb-ify the place, Shire Hall managed only to crush affordability. All the while pushing out folks on the margins.
The sad irony is that after two decades and a sixfold increase in taxes, the County still doesn’t generate nearly enough tax revenue to stay ahead of its spending. It’s a bad sign.
Deeper analysis of the Audited Financial Statements for the year ended Dec 31, 2025, just released last week to the Audit Committee from auditors KPMG, reveals the STEAMING PILE that the outgoing Mayor and Council leaves the incoming group. (Remember: The Auditors didn’t make these decisions, the Mayor and Council did. They can blame departed CAO and Directors, but they bear the responsibility.) Look at the facts.
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Operating Expenses: $102 MILLION
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The County collected $56.2 million from local property taxes last year, but the money is spent before it ever fixes a pothole:
Big Office Bills: Around 70% of all property tax money goes just to pay the salaries and benefits of city workers.
Outside Help: The County spent a massive $23.1 million on outside companies and expensive consultants because the city does not have its own workers to fix complex problems
The Rural Road Trap: Because the County has a small population spread out over a very large area, it cost over $21 million just to maintain rural roads and bridges last year
The Hidden Water Debt – The County spent $2.4 million just on banking interest to pay for past construction. Almost all of that debt comes from the water and sewage systems. Because there are not many people living here to share that cost, your water bills are some of the highest in the province.
The Big Risk for Voters
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The County only survived last year because higher levels of government gave the County a $27.6 million grant gift. If the province or federal government decides to stop giving this extra money after the election, local taxpayers will be forced to pay even higher tax bills to cover the gap.
County employees will not like to hear this, but here are the three steps that must be taken to get the finances right-sized:
1) Fire Outside Consultants
The County wastes $23.1 million a year on expensive private contractors and corporate advisers because it lacks its own specialised staff. Cutting this out-of-house spending and sharing experts with neighbouring cities will instantly save millions of tax dollars.
2. Freeze Expensive Growth Projects
The County is drowning in debt trying to build massive water and sewer systems for future housing subdivisions that developers are refusing to build anyway. Pausing these expansion projects stops the $2.4 million annual interest drain and forces wealthy builders to pay their own way.
3. Share Municipal Staff and Services
Running a fully independent government for a small population is too expensive, with payroll swallowing nearly 70% of local property taxes. Merging departments like emergency services, office management, and IT with neighbouring municipalities will dramatically lower overhead costs.
County Employees are less than 1% of the population, but they are consuming around 70% of all property tax money.
Vote for a Mayor and Council that can make the tough decisions this December budget week, to set the stage for a multi-year right-sizing of the County to something sustainable.
Or, just throw in the towel, don’t bother voting, and accept the future that the County has become Muskoka east, or the Hamptons north, where only wealthy people can live.
VOTE! If there isn’t anyone you would trust on the ballot, still go to the polls. Officially decline your ballot when they present it to you at the desk, and walk out. I’ve checked with the Clerks Dept. and it is official – your “vote” will still be officially tallied. Alternatively, fill in the names that you agree with and leave the rest blank.
We deserve oh so much better from the people we elect. In the last 2+ years, I’m not seeing much to be confident about with the skill level or attitude from Council which is presented here. The arrogance that some of our Council members know what is best for us, instead of listening, is astonishing. We have a very well-educated population in this County, and they are being ignored. Shoved aside.
Just be very sure who and what you are voting for. Will they declare a conflict, and if so, that’s one vote down for each member of council who does this, for the residents representation in Council. If they should declare conflict, and do not [and right now I can see at least three on Council, and two of them are on the voting ballot who fit this description with slithering ease, not to mention those five members of our ELECTED Council who are on the PECAHC], then do not vote for them. We absolutely do not need what they purport to offer us – even if they have done great things for all the right reasons, for the County. They are, in my own opinion, compromised. You may or may not agree. I’m beyond caring.
The incoming Council is going to have to convince me – and with the exception of one or two in Council, I no longer believe.
I used to. And I resent this loss, mightily.
Guess it’s called a “Non-Confidence vote”, huh? That sounds about right.
Finally, let’s look at Debt.
First, “Temporary Borrowing”:
Total borrowing capacity under the Ontario Infrastructure and Lands Corporation stayed completely unchanged at $0, holding flat at $44,758,215 across both 2024 and 2025.
Outstanding temporary bridge funding decreased marginally by $60, dipping from $40,725,064 in 2024 to $40,725,004 in 2025.
WE JUST PAID THE INTEREST TO DOUG FORD’S GOVERNMENT, AND STILL OWE EXACTLY WHAT WE OWED A YEAR AGO FOR WHAT IS LABELLED “TEMPORARY”.
And the Interest rate is not published. This is like using a Credit Card to pay your hydro and mortgage payments, car loans etc.
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Second, Long Term Debt:
Total outstanding long-term debt decreased overall by $2,523,569, dropping 7.65% from $32,969,046 in 2024 to $30,445,477 in 2025.
Balance carried forward from the first ten infrastructure loan debentures decreased by $1,495,281, falling 5.29% from $28,287,293 in 2024 to $26,792,012 in 2025.
Infrastructure Ontario loan bearing 1.82% interest dropped by $216,306, declining 15.55% from $1,391,022 in 2024 to $1,174,716 in 2025.
Infrastructure Ontario loan bearing 3.51% interest fell by $134,253, contracting 11.08% from $1,211,950 in 2024 to $1,077,697 in 2025.
Infrastructure Ontario loan bearing 4.12% interest dropped substantially by $593,698, shrinking 37.25% from $1,593,731 in 2024 to $1,000,033 in 2025.
Infrastructure Ontario loan bearing 1.45% interest decreased by $85,031, receding 18.94% from $449,050 in 2024 to $364,019 in 2025.
Canada Mortgage and Housing debt ticked slightly upward by $1,000, increasing 2.78% from $36,000 in 2024 to $37,000 in 2025.
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Logic tells you that Long Term debt is usually cheaper (lower interest rates) than Temporary Borrowing.
So, why do you think we have been doing so much Temporary Borrowing, which costs taxpayers more?
BECAUSE WE ARE AT OUR LIMITS. (some would say, past our limits).
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REALITY BITES.
The Ontario government can not, and will not, “step in” to save the County’s finances and protect taxpayers.
Only you can get things under control.
STOP THE BLOAT.
Elect a Mayor that sees the situation for what it is, and will have the courage to rein in spending, and stop borrowing to make outside developers and consultants even richer.
Now let’s look at the Revenue side of things:
Total segment revenue expanded significantly by $12,146,420, increasing 28.47% from $42,661,358 in 2024 to $54,807,778 in 2025.
Government grants surged upward by $11,909,696, sky-rocketing 74.57% from $15,970,311 in 2024 to $27,880,007 in 2025.
User charges rose steadily by $2,725,170, climbing 13.40% from $20,330,053 in 2024 to $23,055,223 in 2025.
Fines and penalties contracted by $558,821, dropping 31.76% from $1,759,552 in 2024 to $1,200,731 in 2025.
Investment income pulled back by $690,825, declining 38.14% from $1,811,213 in 2024 to $1,120,388 in 2025.
Additional revenues – obligatory deferred funds fell by $943,479, retreating 39.35% from $2,397,786 in 2024 to $1,454,307 in 2025.
Other revenues shrunk sharply by $295,321, falling 75.25% from $392,443 in 2024 to $97,122 in 2025.
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So, what can we conclude from this:
1) User charges went up a large percentage, so all those in favour of “user pay” should be cheering.
2) But Government grants went up a staggering almost 75%. That is NOT going to keep happening, for sure.
Right now, the Ontario government is in heavy debt and is short on cash. Because of this, they are being very careful and strict with the grants—which is free money you do not have to pay back—that they give to towns and cities for the 2026–2027 year. They are not offering us loans; we are talking about real grant money.
What this means for your wallet: Because these provincial grants are too small to cover rising construction costs, and because the County cannot rely on loans to fix everyday problems, our local Council will be forced to raise our property taxes and water bills to pay for what the grants missed.
Based on the financials from the previous year, the writing was already on the wall. The proposed tax hike for LAST year was in DOUBLE DIGIT PERCENTAGES.
But your Mayor and Council chose instead to keep the spending going, actually putting their collective feet on the accelerator, and drained reserve funds to be able to keep the tax hike to what people could swallow (despite it still being higher than inflation).
But what about the Feds, then?
Federal grants are the second place our town can look for free money. But just like the province, the federal government in Ottawa has its own strict rules about who gets a grant.
The federal government hands out grant money based strictly on how many people live in your town.The Reality for PEC: Prince Edward County has a very small year-round population (around 25,000 people). Because our headcount is low, our automatic slice of this federal grant pie is very small. It gives us a small, steady drip of cash, but it is nowhere near enough to fix our major road and water system problems.
REALITY BITES.
STOP THE BLOAT.
Elect a Mayor that will cut spending, stop borrowing, and keep property taxes from spiralling ever upward while developers and consultants fatten their wallets at our expense.
Don’t stop at just reading the signs.
Read the Audited Financial Statements that were presented to the Audit Committee by KPMG at their Thursday meeting.
There’s a lot in there. Let’s start with Expenses. Here’s a snapshot:
Salaries, wages, and employee benefits escalated by $3,696,846, increasing 10.34% from $35,744,901 in 2024 to $39,441,747 in 2025.
Contracted and general services increased by $3,066,546, rising 15.27% from $20,079,155 in 2024 to $23,145,701 in 2025.
Rents and financial expenses grew by $125,796, stepping up 12.21% from $1,030,543 in 2024 to $1,156,339 in 2025.
Amortization expenses climbed by $1,663,972, growing 14.05% from $11,842,135 in 2024 to $13,506,107 in 2025.
STOP THE BLOAT!
Elect a Mayor that will halt the bloat and massive spending, and get the spending more right-sized to a County of 25,000 souls.
May I respectfully suggest that we Elect a Mayor that will not have to declare a Conflict of Interest. For any damned reason. One of these candidates is unable to protect and vote on the interests of the residents due to subdivision development. Be careful what you wish for. It is already known this candidate is in favour of at least one of them.
Be very sure you ask as many questions as possible of ALL candidates. If you still feel they will represent your wishes regardless of Conflict of Interest, then by all means, vote in favour of them. Just be aware of how this affects the entire County, and not just your Ward.
Hmmm…
I know from painful and personal experience that a Councillor in a different Ward can interfere in a Staff decision to decline a planning amendment that is benefiting, and won, by the residents of another Ward. He convinced Council to have it sent back to Staff to see if something could be done [presumably to avoid the developer from going to the Ontario Land Tribunal – which would cost taxpayers – and isn’t protecting our interests from the developers interests part of what we pay taxes for?].
Yup. Be very careful who you vote for. But do, please, Vote!
Agree. Just in Community Programs for example we have 7 staff members at or close to $100,000 annually each. Totally unneccessary and uneeded . But no one will take the serious actions to correct the taxpayer bloat! County staffing is beyond ridiculous.
Possibly we can thank the previous, and to all appearances the unsupervised, CAO for this Empire Building of Senior Staffing. To make my point here, that unsupervised bit can be laid firmly at this Mayor’s feet. Perhaps the CAO did precisely what she was hired to do, and she, the Mayor and all of Shire Hall allowed the Developers in the County to direct this bloat. Admittedly, the staff hired are very well qualified. But I doubt that a population of 25,000 requires the size of this council, nor the size of the staffing we are paying for with the annual taxes from 16,500+/- taxpayers.
Realistically the County is broke. Just a matter of time before the Province steps in. It also explains the lack of residents coming forward to run for Council. The County debt load is unstainable. And no one, absolutely no one will support a Staffing Review that would result in gutting the cream and reducing our bloated staffing numbers!
Your accurate description of the County’s dilemma is locker room material for Regional Government!
Better yet … a Public Inquiry.