Mississauga and Brampton at odds over Peel's future in spite of report

Yorkregion.com
May 27, 2019
Marta Marychuk

Taxpayers in Peel could be on the hook for $755 million in dissolution costs and lost revenue should the region separate, according to a report from Ernst & Young (EY).

“That’s the hit for taxpayers in the Region of Peel,” said Brampton Mayor Patrick Brown, at Thursday’s regional council meeting. “This is a big hit.”

The $755 million in dissolution costs include $100 million in lost revenue from development charges.

The much anticipated EY report was commissioned by the region April 26, after Mississauga called an earlier report by Deloitte flawed. The EY report was completed May 21, just in time to meet the province’s deadline to submit information on regional governance.

The province is now examining the governance, decision-making and service delivery functions of eight regional municipalities and their lower-tier municipalities, including the Region of Peel.

However, Mississauga council has formally asked the province to pass legislation to make the city independent from the region.

“Ernst & Young confirms that if Mississauga were to separate from the region, Mississauga taxpayers would see $84 million in savings,” Mississauga Mayor Bonnie Crombie said in a statement. “This report proves Mississauga’s long-held position that our city would be better off, both financially and from a governance perspective, should we become independent.”

But Brown said the EY report confirms the findings of Deloitte.

The EY report examined three scenarios of regional governance: amalgamation of the region, dissolution of the three municipalities (Brampton, Mississauga and Caledon) and the status quo.

Upon dissolution, services and expenditures of the region are dissolved and allocated to the three municipalities, which will have an impact on municipal taxes, the EY report added.

Mississauga would save $84 million in taxes, while Brampton would save $45 million. The report said Caledon would see an increase of $20 million in taxes.

The EY report “paints a different picture” than the report commissioned by Deloitte, said Crombie, adding EY’s analysis corroborates the report from the City of Mississauga. “One thing we can all agree on around the table is we don’t want amalgamation.”

“We make no prediction of what would happen in the future,” said Mark MacDonald, EY Global lead partner, Public Financial Management and lead partner, Government and Public Sector (Ontario).

MacDonald said the EY report engaged stakeholders across municipal service lines in its development and using a range of assumptions. The report reflects a “series of scenarios” that would have to take place to realize the $84 million in tax savings to Mississauga.

“Whatever happens here, further analysis will be required,” MacDonald added.

There is a perception Mississauga has subsidized Brampton, said Brampton Coun. Martin Medeiros, adding the key to Mississauga’s development has been the services and infrastructure the region has provided over the years.

But when it’s Brampton’s turn to develop, Medeiros said services and infrastructure is being withdrawn.

“It’s part of the story that hasn’t been told,” Medeiros.