April 2019
Regional Governance Implications for Region of Peel Released by Auditor

2019-04-04 1:40:50 PM

CATEGORIES: Planning

At the request of the Region of Peel and in light of the ongoing regional governance review, Deloitte undertook a report to examine the financial implications of changing the current two-tiered municipal government model which makes up the Region of Peel. 

The report looks at three different governance scenarios: continuing the current structure while exploring options for efficiency, creating a single City of Peel; and separating Mississauga, Brampton, and Caledon into three different municipalities. 

The report also examines the residential impact (property tax and utility rates per average household); total impact (property tax paid and utility rates charged by each jurisdiction); and municipal financial metrics (including debt to operating revenue and net debt) over a 10-year time frame.

The findings of the report are summarized below: 
 

  • Savings of $261 million in taxes could be achieved if all municipalities in the Region collaborated with one another in service areas, such as fire and parks and recreation, to enhance efficiencies. This option could reduce tax requirements when compared to the current structure. The report does, however, acknowledge that both the Regional and the Local levels of government have achieved efficiencies on a standalone basis. 
  • Amalgamation into a single City of Peel will require an increase of tax totalling $676 million over a ten year period that will need to be generated when compared to the current structure. Out of the three options examined, amalgamation requires the most tax increases in year 10 due to significant increases in operating costs. 
  • Separating the Region into three separate municipalities would require an annual tax levy of $1,081 million that will need to be raised when compared to the current structure over the next 10 years. The third examined option is more costly than amalgamation due to initial investments to duplicate regional services locally. 


The Ontario Government is in the midst of a review to examine the governance, decision-making, and service delivery functions of 8 regional municipalities (Halton, York, Durham, Waterloo, Niagara, Peel, Muskoka District, and Oxford County) and Simcoe County. Special Advisors Michael Fenn and Ken Seiling are currently consulting with the 82 upper-and-lower tier municipalities affected by the review and will present their recommendations to the Minister of Municipal Affairs and Housing in the coming summer. 

As one of two organizations specifically named in the Terms of Reference for the Review, AMCTO looks to foster engagement with sector professionals to help inform this process. 

For more information, please see below: 

Financial Impact Analysis of Service Delivery Models: The Regional Municipality of Peel

Region of Peel Receives Auditor’s Report on Mississauga Independence

Regional Governance Review
 


 


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