Municipalities across Ontario are grappling with the rising costs of staffing, but in Prince Edward County (PEC), the growth has been especially pronounced. With increasing demands for services and infrastructure, the County has significantly expanded its personnel budget—but at what cost, and with what return?
This article explores how PEC’s staffing trends compare with other municipalities, and what lessons can be drawn to ensure sustainable, accountable governance.
Rising Compensation in Prince Edward County
Between 2023 and 2024, the number of County employees earning over $100,000 rose from 34 to 46—a 35% increase. During the same period, total compensation for these high-earning staff grew from $4.3 million to $6.0 million. These figures come from the Ontario Sunshine List and the County’s budget reports.
This growth is occurring in a municipality with a population of just over 25,000 and a 2024 operating budget of $71.6 million, alongside capital expenditures of $116.1 million. With expenses far exceeding revenues, concerns are mounting about the sustainability of this staffing trajectory.
How Does PEC Compare to Other Municipalities?
A comparative review of 10 Ontario municipalities offers a clearer perspective:
| Municipality | Pop. (2021) | 2024 Staff >$100K | 2024 Compensation ($M) | 2024 Revenue ($M) | 2024 Expenses ($M) |
|---|---|---|---|---|---|
| Prince Edward County | 25,100 | 46 | 6.0 | 71.6 | 116.1 |
| Hastings County | 143,700 | 134 | 13.5 | 186.3 | 182.0 |
| Lennox & Addington | 43,000 | 58 | 7.13 | 59.8 | 58.2 |
| Northumberland County | 89,846 | 111 | 11.6 | 162.1 | 159.4 |
| Peterborough County | 62,900 | 84 | 10.1 | 152.7 | 149.3 |
| Kawartha Lakes | 79,700 | 164 | 20.4 | 245.5 | 243.0 |
| Quinte West | 44,400 | 60 | 6.2 | 118.9 | 117.2 |
| Belleville | 55,600 | 100 | 10.0 | 174.0 | 172.8 |
| Greater Napanee | 15,900 | 13 | 1.5 | 42.7 | 41.9 |
| Brockville | 21,400 | 72 | 7.2 | 62.5 | 61.0 |
Key Insight: PEC has one of the highest ratios of staff earning over $100K per capita, and a significant gap between expenses and revenues. While this may reflect a legitimate need to professionalize service delivery, it raises fiscal red flags.
Pros and Cons of Rising Staffing Budgets
Pros:
- Improved administrative capacity for planning, infrastructure, and public engagement.
- Ability to attract and retain skilled professionals amid province-wide shortages.
- Service expansion tied to growth in tourism, development, and community demand.
Cons:
- Rapid cost escalation without corresponding public performance reporting.
- Public perception of bloated bureaucracy amid ongoing service delays.
- Long-term risk of tax hikes or capital deferrals to manage operating shortfalls.
Recommendations for Sustainable Growth
- Benchmark Compensation: Use population- and revenue-adjusted comparisons with peer municipalities to inform staffing strategy.
- Audit Organizational Efficiency: Engage an independent third party to review structure, performance, and value for money.
- Enhance Public Reporting: Issue an annual HR performance report, including service-level metrics tied to staffing growth.
- Pursue Shared Services: Reassess opportunities for intermunicipal collaboration (e.g., HR, finance, IT) to reduce duplication.
- Link Growth to Results: Tie wage growth and new hires to clearly defined service benchmarks and infrastructure outcomes.
Conclusion
Prince Edward County’s staffing expansion reflects a broader challenge facing rural municipalities: how to maintain service quality in the face of rising expectations, regulatory complexity, and constrained tax bases. But growth must be matched with clear accountability, strategic planning, and fiscal prudence.
Councillors and staff now have an opportunity to lead by example—ensuring that every dollar invested in public administration delivers visible, measurable returns for the community they serve.