JASON SETNYK
The City of Cornwall has confirmed the authenticity of a leaked internal memo announcing staffing changes affecting senior positions within the municipality. The memo, obtained by Seaway News, follows over a year of organizational changes and previous workforce reductions that the City connected to budget pressures.
“As you are aware, the City of Cornwall has been undergoing a period of organizational transition and restructuring over the past several years,” wrote Deputy CAO Matthew Stephenson in the message to staff. “This has been focused on strengthening service delivery, aligning our structure with evolving community needs, and ensuring we are well-positioned for the future.”
Lisa Smith, Kristine Greaves, and Marie-France Walker are no longer with the Corporation. Tracey Bailey and Mellissa Morgan are on leave. “At this time, we do not anticipate further restructuring,” Stephenson wrote. Bailey is Treasurer and General Manager of Financial Services, while Morgan serves as General Manager of Human Services. Smith and Greaves were managers in Human Services; Walker served as Manager of Finance and Deputy Treasurer.
According to Ontario’s 2025 Sunshine List, the five positions represented approximately $795,000 in annual salaries, although the overall financial impact of the changes remains unclear. Louis Savard has been appointed Acting General Manager of Human Services. “Louis brings strong leadership and experience, and we appreciate his willingness to step into this role during this period,” wrote Stephenson.
Seaway News submitted questions to the city seeking details about the financial impact of the restructuring, whether the changes were financially driven or based on service delivery, when the review process began, whether Council was involved, and how responsibilities will be redistributed. Questions were also asked about potential impacts on service levels, the loss of institutional knowledge, and employee morale. No response was received before publication.
The changes also follow turnover in the City’s top administrative role. Former CAO Mathieu Fleury departed in October 2024 after roughly one year in the position, with Tim Mills later hired as CAO. According to the Ontario Sunshine List, Fleury received $229,464.90 from the city in 2025. The reason for the payment was not detailed in the Sunshine List disclosure. Cornwall has also lost talent and institutional knowledge as experienced staff has moved into senior leadership roles elsewhere. Councillor Claude McIntosh has compared the City to the Montreal Expos for developing talent. For example, former Cornwall employees who later became CAOs include Jamie Fawthrop with South Glengarry and SDG Counties, Michael Fawthrop with North Glengarry, and Maureen Adams with SDG. Adams recently retired and was succeeded by Jamie Fawthrop as SDG CAO. The latest changes come after a larger round of staffing reductions announced in October 2025, when the city confirmed the elimination of 26 positions, including 14 Canadian Union of Public Employees Local 3251 jobs. At the time, the city described those reductions as “strategic workforce adjustments” ahead of the 2026 budget process and said they represented approximately $2.4 million in savings. The city previously stated the workforce adjustments were connected to financial pressures, including rising wages, insurance costs, fuel, construction materials, and the need for long-term sustainability. CUPE 3251 President Roxanne Bancroft criticized the earlier reductions, arguing they would strain staff and affect services while questioning the City’s spending priorities. “They’ve spent $75 million over budget on just three capital projects: the (new) fire department, the arts centre, and the Civic Complex,” Bancroft said. “Meanwhile, they’re laying off frontline staff who serve the people of Cornwall.”
Cornwall’s financial challenges were highlighted throughout the 2026 budget process. In July 2025, council received a financial outlook projecting a $14.56-million budget gap heading into the following year. “It is not sustainable to draw from operating reserves every year to help with the budget,” Bailey told Council during that presentation. Cornwall City Council would approve a 5.41 per cent tax levy increase, along with a 6.81 per cent increase to water and wastewater rates. Council has also discussed longer-term financial pressures connected to municipal debt. In 2025, projections showed annual debt repayments could reach approximately $25 million by 2029 based on existing debt, approved borrowing, and future capital plans. Some councillors have raised concerns about the timing of multiple major projects and the need to better stagger future investments to manage the impact on taxpayers. “The status quo for the municipality is not financially sustainable,” Mills has cautioned.
Stephenson acknowledged the personal impact of organizational changes and encouraged employees to access support services. “Change of this nature can feel abrupt and, at times, unsettling, both professionally and personally,” he wrote. “It is completely normal to experience a wide range of reactions, including concern, uncertainty, frustration, or sadness.”
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