Regional Government Review Update

Jun 28, 2019 Uncategorized

Regional Government Review Update

Message from Bonnie Crombie, Mayor of Mississauga

You may recall that in April the Region of Peel Council commissioned Ernst and Young (EY) to conduct an independent financial analysis. This analysis is complete and due to tight timelines, was submitted directly to the province. The Report applied a collaborative approach and consulted with the four Chief Administrative Officers (CAOs) of the cities of Mississauga and Brampton, Town of Caledon and the Region of Peel. The report looked at possible financial impacts of potential changes to service delivery models in three scenarios: dissolution, amalgamation and maintaining the status quo. It focused on reasonable and feasible service delivery models (e.g. police, water and wastewater, roads, public works, etc.) for amalgamation and dissolution.

The EY Report confirms what Mississauga has been saying all along – under amalgamation Mississauga taxpayers could see an annual savings of $84 million after transition costs are factored in. Other key highlights of the report include:

•             Savings: An annual savings of $84 million would amount to nearly $1 billion dollars in savings over 10 years. These savings are above and beyond the additional costs Mississauga will incur to deliver new services currently delivered by the Region.

•             Cost: Yes, for separation there will be a one-time, short term costs to Mississauga totalling roughly $40 million. This amount can be covered by the $84 million in savings. The costs are short term, but savings are forever. You may hear other politicians talk of skyrocketing costs, but this is not true for Mississauga. In every analysis conducted, it has been shown that Mississauga is better off financially and from a governance perspective as an independent city.

•             Debt: Mississauga would assume $1 billion in debt upon the Region’s dissolution, but 99% of this would not be on the tax bill. It would predominantly rest with public housing mortgages on for water and waste water infrastructure which is already covered by utility rates.

•             Payout: There isn’t a payout. The study confirms that as long as the asset is maintained by the public, there is no requirement for Mississauga to pay Brampton or Caledon anything. Furthermore, Mississauga has historically paid 60% of the tax bill at the Region, sometimes up to 77%. The math does not add up for Mississauga to pay anything upon separation when we’ve consistently paid the majority of the costs.

Following the April 8th town hall, I know residents had many questions. In fact, Council had a few as well. The EY Report provides many answers and in effect, lays out a blueprint for Mississauga to proceed with separation from the Region of Peel. Ultimately, this will be a decision of the provincial government, but the EY analysis shows that Mississauga is more than ready and capable of being an independent city.  It is anticipated that the government of Ontario will be making a decision in November as the legislature has adjourned. I hope to provide you with an update once a decision has been announced. Until then we await the Province’s decision.

Please continue to visit the City’s website to find out more information and updates as they become available: http://www.mississauga.ca/portal/cityhall/regional-government-review

Sincerely,

Bonnie Crombie

Mayor of Mississauga

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