Ministry of Finance

Norfolk County is exploring alternative funding models and advocating for fairer property assessment practices to ensure long-term financial sustainability and protect its agricultural community.

New revenue sharing for municipalities

Where we're at

Given that municipalities have an extremely limited ability to control their revenue growth and the services or service levels that are provided, as costs increase, municipalities have limited available options except to increase property taxes. Based on this notion, Norfolk County requests that the Province consider a new revenue-sharing agreement with all municipalities to help local governments better address the new fiscal realities that are no longer sustainable, primarily on the backs of property owners through local property taxes.

In addition to the general municipal burden, Norfolk faces higher service delivery costs due to its significantly lower population density, which requires maintaining the same level of service across a larger area with fewer residences. For example, for an ambulance to reach homes in the provincially targeted time requires more ambulance bases per capita, or for water to reach homes further apart and in more remote locations requires more pipe, increasing costs per capita. The issues persist, despite double-digit reserve contribution increases in recent years. Norfolk’s asset consumption ratio is still outpacing the rest of the Province, while average household income lags, meaning affordability continues to be a serious concern for Norfolk residents.

Why is this project so important:

In February 2024, Mayor Martin put forward a motion directing staff to investigate alternative funding options for advocacy to upper levels of government; to provide a workable framework concluding with a new deal for Norfolk.

The analysis concluded with the following options:

• If 1% of the sales tax was re-distributed to municipalities based on population this could generate an additional $23M annually for Norfolk.
• If 1% of personal income tax were redistributed to municipalities based on the location reported on tax returns, Norfolk could be eligible for $26.3M annually.
• If an additional sales tax rebate were considered, where municipalities were eligible for a full rebate on all sales taxes paid, this could result in an additional $1.3M per year for Norfolk.

Norfolk asks that the Province:

• Consider a new revenue-sharing agreement with all municipalities to help local governments better address the new fiscal realities that are no longer sustainable, chiefly on the backs of property owners through local property taxes.

Farm property assessment rates and MPAC

Where we're at

Norfolk County is one of Ontario’s most agriculturally rich regions, with over 90% of our land base classified as farmland. Over the past several assessment cycles, MPAC's valuation of farmland has increased sharply—at times disproportionately to actual farm income. Norfolk County is asking the Province to recognize the broader value of farmland and its integral role in food security, not just for Norfolk County but also in the province’s food system, environment, and rural economy.

Over the past several assessment cycles, MPAC’s valuation of farmland has risen significantly, outpacing actual farm income and creating disproportionate tax burdens for local farmers. While land values may be influenced by market pressures or speculative demand, the reality for many farmers is that their operating margins remain tight due to rising input costs, weather-related volatility, and market constraints. These elevated assessments translate into higher municipal property taxes, threatening the long-term viability of family farms and agricultural operations.

Norfolk asks that the Ministry of Finance:

• Review MPAC’s Farmland Valuation Methodology:
  We urge the Ministry to work with MPAC to reassess how farmland values are calculated—ensuring the process is transparent, grounded in actual agricultural use and productivity, and not unduly influenced by non-farm market forces or land speculation.
• Phase in Increases or Provide a Stabilization Mechanism:
  Sudden and sharp increases in assessments should be phased in over a longer period or mitigated through a stabilization fund or provincial offset to ensure farmers are not hit with steep property tax hikes overnight.
• Engage with Municipalities and the Agricultural Sector:
  The Ministry should lead meaningful consultation with municipalities like Norfolk and farm advocacy groups to develop an approach that supports long-term farmland protection and sustainable rural taxation models.