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Introduction

The Rural Municipality of Kinkora in Prince Edward Island (PEI) is one of the few public entities in Atlantic Canada to establish, operate, and expand a municipally run Early Years Centre and school-age program. This paper examines how and why the municipality chose to deliver child care as part of its core community services.¹

The rural municipality of Kinkora – the first municipality in PEI to operate an Early years Centre and school age care program

Located 41 kilometres west of Charlottetown, the Rural Municipality of Kinkora  is a small community with a population of approximately 400. First settled in 1835, Kinkora was incorporated as a village in 1955 and later designated as a rural municipality under Prince Edward Island’s updated municipal framework.

The municipality is responsible for delivering a range of local services, including sewer and water services, development permitting, infrastructure maintenance, and the upkeep of parks and recreational facilities. Its primary sources of revenue include property taxes, provincial and federal transfers—such as equalization payments from the provincial government and the Canada Community-Building Fund, used for infrastructure projects—and user fees from municipal services and facility rentals.

Kinkora is governed by a mayor and six councillors. The municipal office is located in Kinkora Place, a community facility that also houses a public library and a multi-use hall for local events and activities.

Municipal governance reform and local impact

In 2017, the Municipal Government Act (MGA) replaced Prince Edward Island’s Municipalities Act of1983, introducing significant changes to municipal governance.

The MGA modernized and strengthened governance across the province by increasing consistency, transparency, and municipal autonomy. It standardized administrative structures, clarified the roles and responsibilities of mayors, councillors, and chief administrative officers (CAOs), and introduced requirements to enhance financial accountability. Municipalities are now required to hold public meetings, adopt public engagement policies, and make Council minutes and financial reports publicly available.

Decision to establish a child care centre

When COVID-19 arrived in the spring of 2020, all regular activities and events held in Kinkora’s community hall—such as seniors’ programs, weddings, wakes and family reunions—were suspended. With the loss of rental income, the hall remained unused, prompting the municipal Council and CAO to explore ways to both offset the lost revenue and provide a valuable service to the community.

Around the same time, a local resident began researching the demand for child care in the area and the steps required to open a centre. A previous study conducted by the Department of Education and Lifelong Learning (now Education and Early Years) had already identified a child care need in the Kinkora region.

In September 2020, a proposal was brought forward to repurpose the now-vacant community hall in Kinkora Place into a child care centre. The following month, the Planning Board recommended that Council apply for a licence to operate a centre for 20 children and submit a funding application to the Rural Jobs Initiative to support two positions—a supervisor and an educator—during the project’s planning phase. The motion was unanimously approved.

The mayor noted that establishing a child care centre would not only meet a critical need but also support community growth by attracting young families to the area.

Considerations for centre governance

At the outset, Kinkora’s municipal Council considered leasing the community hall to an existing child care provider from a neighbouring community that was seeking a new location. With no prior experience in operating a child care centre, Council viewed this as a practical option. However, after further exploration, they ultimately decided to operate the centre themselves.

In October 2020, the Manager of Early Learning and Child Care from the Department of Education and Lifelong Learning met with the CAO and Council to assess the facility. When municipal officials expressed concern about their lack of experience in child care, the Manager assured them that departmental support and resources would be available. She encouraged the municipality to take on the operation directly.

Several key factors influenced Kinkora’s decision to operate the centre:

• Greater control over the use of the facility and day-to-day operations
• Flexibility to continue using the hall for community events during evenings and weekends as COVID-19 restrictions eased
• A strong desire to provide a needed service for local families
• The potential to generate revenue while supporting community growth
• Availability of funding opportunities specifically for municipalities
• A young, innovative Council willing to take a proactive and hands-on approach
• A demonstrated need for licensed child care in the rural area

Ultimately, the municipality chose to maintain control of the space and service delivery, rather than leasing to a private operator who would assume authority over both.

Getting started

In October 2020, the Minister of Communities and Fisheries expressed support for the proposed municipal child care centre and committed Rural Jobs Initiative funding to hire a project coordinator. The coordinator—who had a background in child care and was familiar with licensing requirements—was hired in December 2020. She developed the business and service plans and submitted an application to the Department of Education and Lifelong Learning for a licence to serve 20 children aged 22 months and up, with the understanding that the licence could later be amended to accommodate 30 children.

Staffing challenges and early decisions

Staff recruitment was a significant challenge, as it was across much of the province. The CAO initially advertised for a centre director and received three applications. One applicant was the project coordinator, who was subsequently hired and transitioned into the role of Director of Programming. When the municipality advertised for Early Childhood Educators (ECEs), only two applications were received. Both were hired and have stayed working with the centre, one of them now serving as the Director of Programming.

Originally, the centre was not intended to serve infants due to the lack of a dedicated infant space. However, there was a specific need for infant spaces in the community. In response, the CAO proposed hiring an additional staff member and repurposing an extra room in the building to accommodate three infants. Council approved the proposal.

Funding, licensing, and Early Years designation

At the time the centre was being developed, provincial policy required centres to be licensed and in good standing for six months before applying for Early Years Centre designation and provincial operating funding. From the outset, however, Kinkora chose to pay staff according to the provincial wage grid and charge the set parent fees as if they were already a designated Early Years Centre. The municipality covered the interim operating costs using municipal funds. Although they were not eligible for provincial start-up funding, they raised some funds locally and paid for all equipment and furnishings necessary to meet licensing standards.

In June 2021, the province waived the six-month waiting period and allowed the centre to apply for designation in the next intake, which closed on July 12. Kinkora received official Early Years Centre designation in November 2021, with provincial funding retroactive to the date of application.

Opening and operations

Kinkora Early Learning Centre (KELC) officially opened in March 2021, staffed by a Director of Programming, two educators, one educator assistant, and a part-time cook. All staff report to the municipal CAO, who manages the centre’s financial operations, including payroll, parent billing, subsidy claims, funding applications, budgeting, and reporting. This structure allows the Director to focus on program delivery, regulatory compliance, family engagement, and day-to-day centre operations.

Outdoor space development

At opening, the municipality applied for an exemption for playground fencing. They later used funding from the Canada Community-Building Fund to begin developing the playground, starting with a fence. The community contributed enthusiastically—residents donated play materials, and one individual built a mud kitchen from repurposed materials.

In 2022, the municipality received a $100,000 grant from Economic and Social Developmentto build an accessible playground, which was completed in November 2024. KELC now has a fully fenced, accessible outdoor space, including a dedicated area for infants.

Budget and financial sustainability

The centre’s budget is incorporated into the municipality’s overall operating budget, with clear categories for staffing, administration, occupancy, supplies, and food. Revenues from provincial operating funding and parent fees generally cover all expenditures. Some years result in a break-even budget; in others, a small surplus is realized and reinvested into the child care program or other municipal services.

Gradual expansion and evolving community needs

In June 2021, KELC expanded its programming by hiring two students to operate a school-age summer program. To accommodate this addition, the indoor space was reconfigured: infants were moved into the former nurse’s office (allowing for three more to be enrolled), children aged 2–5 occupied the seniors’ room, and the school-age program was housed in the main hall.

By February 2022, the centre’s waiting list had grown to over 200 children, highlighting the significant demand for licensed child care in the region. Discussions began around increasing capacity by 15 children and hiring an additional educator. This required full use of the main hall, which meant it could no longer be used for other community events/activities. Council acknowledged this trade-off, emphasizing that child care had become a higher priority in meeting community needs.

To free up space for additional early years programming, an application was submitted in fall 2022 to relocate the school-age program to the local elementary school. The transition was approved, and the program officially moved on May 1, 2023, creating room for 15 more Early Years Centre spaces in the original facility.

As COVID-19 restrictions eased in 2022, community members expressed interest in resuming social activities and events. It became clear that the shared community hall could no longer adequately support both child care and community functions over the long term. Given the success of the child care program, Council began exploring options for a purpose-built child care facility.

Planning a new facility

The municipality approached the Atlantic Canada Opportunities Agency (ACOA), which supports community economic development. While ACOA does not fund stand-alone child care centres, it does support community infrastructure projects. To qualify, the municipality proposed attaching the new build to the existing community hall, framing it as a hall expansion.

The initial construction estimate was $1.2 million, with the following funding commitments:

• $600,000 from ACOA
• $100,000 from the PEI Department of Rural and Regional Development
• $500,000 from the municipality

Working with architects and engineers, the design underwent several revisions to reflect a residential scale and aesthetic that would complement the community’s character and meet KELC’s needs.

When the project went to tender, bids came in closer to $1.6 million. Thanks to funding reallocations (“slippage”) from other projects, ACOA and the provincial government provided additional funds, reducing the municipality’s final contribution to $225,000.

Completion and transition

Although the municipality had hoped to break ground earlier, construction began in November 2023 and was completed in July 2024. By then, the Kinkora Early Learning Centre had operated out of the community hall for three years.

In the weeks leading up to the move, the centre gradually increased enrolment to 46 children, ensuring a smooth transition into the new, purpose-built space. When the Manager of Early Learning and Child Care came to relicense the new facility for 56 spaces, she suggested a few changes to the space that would allow for an additional three infants, for a total of 59 spaces. The three new infants will gradually transition to the centre, one at a time, between September 2025 and January 2026.

The school age licence is currently for 30 children, but the program has been operating at 15, due to staffing challenges.

Addressing staffing challenges

Staffing has been a consistent challenge for KELC, particularly given its small rural location. In the past, the Director posted job openings on Indeed, but most applications were unsuitable. In contrast, WorkPEI has proven far more effective. For example, a recent posting for an administrative assistant attracted 30 applications, all from within the province. Six strong candidates were shortlisted for interviews.

KELC has also had success recruiting Early Childhood Educators (ECEs) through Holland College. Several summer students who completed their first-year practicum at the centre have gone on to full-time employment after graduating from the program. This has helped build a steady pipeline of qualified staff familiar with the centre’s philosophy and operations.

The centre now employs 16 staff members, including ECEs as well as pedagogical and inclusion support personnel. The municipality made a strategic decision to overstaff classrooms by assigning an extra support person to each one. This decision was driven by the increasing number of children who do not have formal diagnoses but present with behavioural challenges and benefit from additional support.

Because these extra support staff are not covered by the provincial wage grid or eligible for related benefits, the municipality provides alternative compensation. Each receives:

• An additional 3% in lieu of a defined contribution pension, and
• A $2,000 annual health care spending account in lieu of coverage through the ECDA medical and dental benefits program.

Initially all staff received a $2,000 health care spending account before the municipality accessed the ECDA benefits program. When they made the switch, staff who had a spouse with a good benefits program had the option to continue with the health care spending account if they so chose. All certified staff on the wage scale participate in the mandatory pension plan.

KELC also receives provincial funding for two inclusion support positions for children undergoing the diagnostic process. Although these roles are funded at the provincial minimum wage ($16/hour), Kinkora’s Municipal Council voted to increase their pay to $24/hour, recognizing the importance and complexity of their work.

Conclusion: Kinkora Early Learning Center – a municipal success story

Meeting a community need and attracting families

The Kinkora Early Learning Centre has become a cornerstone of the community, with a waiting list of 160–200 children. Its presence has attracted young families to the area, with some residents noting that child care access was a deciding factor in their move to Kinkora. Local families are given priority access to available spaces, reinforcing the centre’s role in community development.

Strengthening local school enrolment

According to the CAO, KELC is deeply integrated into the fabric of the community and has significantly increased public support for municipal child care. For years, declining enrolment threatened the viability of local schools. Today, schools are “bursting at the seams,” thanks in part to KELC—most children transition from the centre directly into the local elementary school. Parents value the continuity of relationships, with children forming friendships in early childhood that often carry through kindergarten and likely into high school.

Inspiring interest from other municipalities in Early Learning and Child Care

The success of KELC has drawn attention from other municipalities interested in replicating the model. While many remain cautious about direct operation, Kinkora’s experience demonstrates that municipal leadership can deliver high-quality, sustainable child care that directly supports families and local infrastructure.

Financially sustainable and low-risk

 Kinkora’s CAO emphasizes that Early Years Centres receive guaranteed public funding, which covers the cost of operation. The funded provincial wage grid, pension plan, and benefits help with staff retention, reducing competition between centres based on wages. Staff are more likely to stay because compensation is standardized and stable.

A scalable model for other communities

Kinkora’s success offers a strong case for municipal involvement in child care expansion, especially in rural communities: Kinkora Council prioritized child care during the pandemic by providing existing community space that was underutilized.

• During the pandemic, Council prioritized child care by repurposing an underused community space.
• The CAO manages all financial operations, allowing the Director of Programming to focus on quality, pedagogy, and family engagement.
• Council invested municipal funds upfront for start-up and operations prior to Early Years designation; most expenses were later reimbursed through retroactive funding.
• The new purpose-built facility was largely funded by external sources, with the municipality contributing only a small share and retaining ownership.
• Municipalities can access funding streams not available to private operators, reducing the financial risk of establishing new child care spaces.

Would they do it again?

When asked if the municipality would take the same path again, Kinkora’s CAO responded: “Absolutely! And we are very glad that we did not just rent the space to another operator. Not to take anything away from private operators, but we’re in the business of providing service.”

1. Information in this spotlight paper was gathered through a site visit to Kinkora Early Learning Center, interviews with Kinkora’s Chief Administrative Officer, a review of Kinkora Council meeting minutes from 2000-2025 and news articles about the centre. ↩︎

Acknowledgements

The opinions and interpretations in this publication are those of the author and do not necessarily reflect those of the Government of Canada.

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