Cambridge regional councillor Doug Craig is calling out the province for what he calls “unfair treatment” and picking favourites when it comes to Toronto interests.
Last month, the province gave royal assent to an omnibus bill that will reshape the way municipalities generate revenue.
Bill 23, also known as the More Homes Built Faster Act, has the goal of addressing Ontario’s housing crisis by increasing housing supply and incentivizing the construction of homes by preventing municipalities from collecting development charges for certain types of builds.
When Toronto Mayor John Tory told the province the city was facing a $703 million deficit and would likely have to defer "vital infrastructure work" because of it, the Ford government agreed to pick-up one-third of the tab.
But like all municipalities in Ontario, the Region of Waterloo relies on development charges to provide the infrastructure required to support growth and new housing and could be facing a significant deficit as well.
It's predicted Bill 23 will cost the region over $530 million in lost development charges over 10 years.
Now Craig is calling for fairness in a letter addressed to local MPPs and the provincial government.
“I think the basic issue here is the unfairness of it all,” said Craig. “If you're going to treat one municipality differently than everybody else, then it's pretty obvious Toronto is the crown jewel of the amalgamation issue.”
In the letter he writes about the government granting the request by the mayor of Toronto and points out the reasons for the deficit are similar to that of Waterloo region, which is facing a proposed 9.8 percent tax increase and "one of the most difficult budget years ever witnessed."
“This action by your government is patently unfair to the citizens of the Region of Waterloo who through their provincial taxes are now subsidizing the City of Toronto’s budget deficit,” wrote Craig.
The regional councillor wants an explanation of why Toronto is getting preferential treatment, when municipalities such as Waterloo region do not have as many resources as the fourth largest city in North America.
Bill 23 and the resulting loss of revenue has Craig concerned. There is a possibility that the region could raise taxes to make up the difference of losses from the bill.
“If you want to build new houses, then you have to have the infrastructure to build it,” said Craig. “If we don't have the infrastructure, we're now going to have to ask local taxpayers to pick up that extra cost, which they shouldn't have to do. That's the unfairness of that bill.”
Victoria Podbielski, spokesperson for the minister of Municipal Affairs and Housing, assures the people of Waterloo region that this bill will not dig into their pocket, as long as they meet their targets.
“There should be no funding shortfall for housing enabling infrastructure as a result of Bill 23, provided municipalities achieve and exceed their housing pledge levels and growth targets,” said Podbielski. “The government is committed to ensuring municipalities are kept whole for any impact to their ability to fund housing enabling infrastructure because of Bill 23.”
The province will also be launching a third-party audit of select municipalities to get a factual understanding of their finances, including their reserve funds and development charge administration.
They plan to use this process to get the facts, make improvements, and better serve taxpayers by exploring alternative tools for growth rather than continuing to raise development fees on new home-buyers and renters.
“We are also working with the federal government to ensure municipalities continue to receive support for the critical infrastructure they need to accommodate growth such as new roads, waterworks and transit through the new Housing Accelerator Fund,” added Podbielski.
Craig's letter has been sent out to every local MPP and has gained some support from regional staff and fellow councillors, he noted.
“We are facing many of our own problems here as well,” said Craig. “Then we have to sit back and see just 100km down the road, a municipality that's got more money than anybody getting free handouts. It's hard to take.”
