SEPH presentation referred to staff as funding pressures outlined

The Southeast Public Health Unit addressed Council this afternoon with a presentation on the updates of merger activities, the 2026 budget, and municipal levies.

Southeast Public Health says it continues to stabilize financially as the newly merged health unit works through its first full year of operations.

The agency reported a small surplus of about $2.4 million for 2025, driven by staffing optimization, consolidation of resources, and early merger efficiencies. SEPH received $10.6 million in provincial merger funding, most of which has been used to pay off mortgages from the former health units and to stabilize staffing during the transition.

Municipal levies were harmonized in 2025, meaning all member municipalities now contribute on an equal per-capita basis. Those changes saw some municipalities paying more, while others paid less. A separate $4.3-million provincial allocation was approved to offset negative impacts for municipalities that faced levy increases.

The 2026 budget, now approved, includes $1.9 million in merger funding to maintain staffing levels during harmonization. Municipal contributions are set to rise 1.09 per cent overall next year.

Looking ahead, SEPH says rising costs and slow provincial funding increases pose ongoing challenges. Projections show potential deficits of $7 million by 2030, even after merger efficiencies. The Board of Health has adopted a phased funding split target of 67.5% provincial / 32.5% municipal by 2030, but notes that additional savings or new funding will be needed.

Southeast Public Health says it’s continuing to stabilize operations after the regional merger earlier this year. The health unit reported that municipal levy harmonization is now complete, with all municipalities contributing on a per-capita basis, though some communities saw increases while others saw reductions.

Provincial merger funding has helped offset the transition costs, including staffing stabilization and mortgage payments inherited from the former health units. SEPH plans to draw on $1.9 million of that funding again in 2026 to support full harmonization.

The health unit says rising operating costs and limited provincial increases remain pressure points. Long-term projections show potential deficits emerging by the end of the decade without new funding or additional efficiencies.

SEPH continues to deliver mandated public health programs, support community partners, and build a unified organizational structure across the region.

The presentation was sent to staff to return with a report.