‘There’s no business case for this’: Durham’s heavily taxed residents fear the added costs of region’s sprawl

Some in Durham say that asking taxpayers to fund the region's sprawling development plan with higher taxes and fees is financially unsustainable.

Thestar.com
Feb. 13, 2024
Noor Javed

Durham already has one of the highest tax rates in the GTA and some residents are worried the region’s plans to expand development into thousands of acres of farmland will leave taxpayers on the hook for generations to come.

The concern comes as Durham Region councillors deliberate this year’s tax hikes and increases in rates for water and wastewater fees. The province’s Bill 23, the More Homes Built Faster Act, reduced the amount municipalities can charge builders in development charges to pay for needed infrastructure for new housing -- putting more of the burden on current and future homeowners.

It also comes as the province mulls signing off on the region’s official plan, which was passed in 2022. Councillors approved a plan backed by developers to open up 9,000 acres of farmland for housing. But that plan was not supported by staff, who instead endorsed a study that found the region’s housing needs could be met by expanding just 2,300 acres.

“It’s about respect of taxpayers' money,” said Abduallah Mir, a member of the group Stop Sprawl Durham. “There’s no business case for this 9,000 acres, and no analysis was openly and transparently presented to show how this will benefit the residents of Durham.”

Now, with an expected hike in both taxes and water and wastewater fees of around 7.5 per cent each, residents and some councillors are concerned that asking taxpayers to dish out for Durham’s sprawling vision is financially unsustainable. The rates will be finalized in March.

 “Whether you are talking about water bills, capital costs, roads budget, the police budget … someone has to pay for these amenities which will cost billions of dollars,” said Pickering deputy mayor Maurice Brenner.

“This means that the public ends up paying today and the future generation who will move into these homes in the white belt. It’s just not sustainable financially.”

Durham's tax troubles are an example of the challenge of municipalities across the country that are struggling to fund the growth that comes with new housing. The Federation of Canadian Municipalities estimated in November that the cost of infrastructure -- such as water, wastewater and transportation -- required to support new housing was in the range of $107,000 per home.

The federation stressed there are few mechanisms short of taxes or development levies to pay this bill, and has called on the federal government to create a new framework for raising municipal revenue.

That's why cities should plan their growth more efficiently, said Helen Brenner, one of the co-leads of the Stop Sprawl Durham. “We’re in tough times. We have a crisis of affordability and climate change. I want our leaders to be innovative and look … at evidence-based planning around building more efficient communities.

"But they are opting for a post-World War II solution to get out of a crisis they were in back then. And they are continuing to repeat this mistake,” said Brenner, who is not related to the deputy mayor.

Members of the environmental advocacy group Stop Sprawl Durham said they have written to the regional council to ask them to “reconsider the costly boundary expansions” and calculate how much the sprawl will cost.

The Region of Durham did not respond to questions from the Star about whether they would consider launching such a study.

The Ontario Ministry of Municipal Affairs and Housing said it is "currently reviewing the feedback received and no decision has been made on the Durham Region Official Plan at this time.”

But the issue is already top of mind for some councillors.

At a public works meeting in December, councillors talked about the financial pressures facing the region now and if residents can afford to pay for future growth.

“If someone can’t afford a house, they are not buying it, the builder is not building it,” said Tito-Dante Marimpietri, a councillor in Oshawa.

“I can’t charge a person more money, who is currently using the system, for future uses.”

At that same meeting, Oshawa councillor Brian Nicholson pointed out that infill development is cheaper than building in a green field where new costly infrastructure must be installed.

Durham resident and city hall watcher Linda Gasser said that sprawl is not only costly to taxpayers, but also impacts the quality of services the city is able to provide, such as transit, access to schools and even garbage collection.

“Our taxes today are paying for decisions made over the last 20 years,” said Gasser. “That planned growth from decades ago is happening now -- and that’s what we are paying for.”

Gasser said the region should be maximizing current infrastructure before adding to sprawl.

“The rising taxes are a concern for many people in the community … and they should know what’s behind that,” said Gasser.

Durham Region has some of the highest tax rates in the GTA, according a 2023 report from Zoocasa, a real estate website. The report found that several Durham cities such as Oshawa, Ajax and Whitby had higher tax rates than comparable cities in York and Peel.

Councillor Brenner said he will be asking for a breakdown of how much building into the "white belt" will cost before the budget is finalized in March.

"We need to know what are the impacts down the road,” said. “We need know what is the cost of growth and we need to know who pays."