The head of a local business development agency is taking issue with one municipality’s challenge to its funding.
Economic Development Corporation of North Simcoe director Cathryn Love says that Tiny Township’s decision not to support the non-profit demonstrates that the municipality’s elected officials do not have a plan in place to support economic development, referencing homegrown or alternative options including Simcoe County and RT07.
“Supporting EDCNS strengthens the local economy and provides residents with food and job security. Is that not worth $87,000 or approximately $6.70 per person to Tiny?” Love asks.
At a recent budget meeting, Tiny's elected officials challenged the EDCNS funding model, which is based on population.
Prior to this meeting, Midland, Penetanguishene and Tay all voted in support of using population as the funding formula, but Tiny did not endorse the plan with councillors viewing the $87,000 request as "unfair." The township now plans to create its own economic development fund with $25,000 going into it as an initial contribution.
Of the four partner North Simcoe municipalities in the EDCNS, Tiny held the smallest commercial tax revenue generator at roughly $160,000 in 2024, but was asked to contribute just behind Midland ($120,000) and well ahead of Penetanguishene ($68,000).
“I have no doubt that the (EDCNS’s) innovation hub will be successful,” Mayor David Evans notes during a recent discussion of the EDCNS funding request.
“I think you’re being a little audacious asking us to be the second largest supporter of something that represents such a small portion of our commercial tax revenue.”
During the meeting, EDCNS treasurer David Potter countered that despite the population-based funding formula used, Tiny looked to gain close to $500,000 in spinoff revenues within a year’s time by supporting the agency.
While Tiny’s largest industry is agriculture. Love says basing a decision solely on a commercial tax negates and is a disservice to Tiny's significant agri-food economy.
“Amongst the four municipalities supporting EDCNS, Tiny has the second largest tax base and as a result the second highest contribution,” Love notes.
“In addition to agriculture as a primary sector, almost all Tiny residents (currently employed) commute out-of-town every day. The majority of residents in Tiny are employed across sectors in Midland, Penetanguishene and Tay.”
The EDCNS is a non-profit organization incorporated by the Town of Midland, the Town of Penetanguishene, the Township of Tay and the Township of Tiny for the purpose of collaboratively promoting the economic health and prosperity of North Simcoe.
As well, Love says EDCNS initiatives aren’t limited to the region’s working population.
“We are also supporting youth in finding jobs in the region and retirees to help grow our future workforce. We help create jobs, lowering unemployment rates and enable people to live and work in North Simcoe.”
Love goes on to point out that Tiny is not contributing funds to many shared services such as libraries, recreation facilities and now economic development, “which will likely impact access to these services, and cost residents more. Investments in capital costs have been prioritized over community services.”
She adds: “Despite all of the cuts to shared community services, Tiny is still facing a substantial tax increase.”
