It's a story Chatham-Kent officials have heard in the past: the population is shrinking and aging, average household income is low, and the municipality's land density is stretched too thin.
Despite this, officials with BMA Management Consulting Inc. feel Chatham-Kent is doing a fairly good job at managing its finances. The company performed a study, looking at the financial position of all major municipalities in Ontario. Along with that, CK was grouped in with ten other similar cities in terms of population. These included Kingston, Leamington, Sarnia and nearby Windsor.
Over the last four years, Chatham-Kent has seen a population decline of 0.6%, while all other municipalities in the group saw an increase. Land density is also a big factor. CK has 42 residents per square kilometer, while the group average is nearly 900. BMA President Jim Bruzzese says this affects the municipality's revenue.
"You have a small population that has to sustain a large land area, which has roads, water, waste water and bridges. That's one of the challenges."
CK's average household income, just under $80,000 per year, also ranks second to last in its group behind Windsor, which is around $75,000. Despite this, Bruzzese says the municipality manages its assets fairly well. In a measure of the municipality's total assets minus their financial liabilities, their financial position per capita is $241.
"In light of all of the challenges in terms of socio-economics, CK is in relatively good position. It seems to be managing its financial resources well in light of those circumstances."
Chatham-Kent council will deliberate financing the BMA study annually, rather than every four years. This allows the council to get this information on a more regular basis.
