HomeNews1Ontario to break up Peel Region, cities to become independent by 2025

Ontario to break up Peel Region, cities to become independent by 2025

Ontario to break up Peel Region, cities to become independent by 2025

The Doug Ford government is breaking up the Region of Peel, paving the way for Mississauga, Brampton and Caledon to become independent cities by 2025.

Legislation was tabled at Queen’s Park Thursday afternoon that kicked off the process by creating a transition board to help “ensure the process is fair and

This board will be established sometime this year and would consist of up to five members appointed by the minister of municipal affairs and housing. These members will have expertise in labour, governance and finance, officials said, and will make recommendations in summer or fall of 2024.

Some areas of analysis include labour relations, disentangling of regional services, property tax arrangements and financial sustainability. The board will also oversee financial decisions of all three municipalities, although it is unclear how much power they will have to interfere in city decision-making.

Financing is one of the biggest points of contention for Brampton, whose mayor has said the city of Mississauga would owe them at least $1 billion in infrastructure.

All three municipalities in Peel contribute a large portion of their tax revenue towards the region as a whole.

Brampton provides nearly 40 per cent of its tax revenue to the region while Mississauga contributes 45 per cent. This money is used to help pay for joint core services such as police, water treatment, roads, garbage collection and housing supports.

Once the three cities are independent, these services will most likely rest solely on the municipalities. Officials stressed Thursday that they expect local services to continue uninterrupted during the transition.

It is possible that some services such as police and utility rates for water services could remain regional.

Officials say that further legislation could be proposed in the fall of 2024 to “address any outstanding restructuring matters.”

By Jan. 1 2025, one year before the next municipal election, Peel Region will officially dissolve.

Mississauga Mayor Bonnie Crombie has long called for separation from Peel Region, suggesting the city has outgrown its counterparts and would save much-needed revenue by standing on its own two feet.

She has suggested the move could save taxpayers in her city about $1 billion over the next decade and, in an interview with Newstalk 1010’s Moore in the Morning, said she” can’t imagine” that Mississauga owes Brampton money for this transition.

According to a 2019 report by Deloitte on the financial impact of services in Peel Region, Mississauga would benefit the most from dissolution while Caledon could struggle to maintain their finances. It found that if Peel Region were to dissolve, “significant effort will be required” to negotiate how assets and services will be divided.

It’s unclear how Caledon, who makes up about 56 per cent of the land area of Peel Region, will be impacted financially.

The province says it will name regional facilities to the regions of Durham, Halton, York, Niagara, Simcoe and Waterloo to determine if the government is “relevant to the needs of its

The government first created the position of “provincially-appointed facilitators” in November 2022. These facilitators were meant to review the roles and responsibilities of both the regional and municipal governments in the area.

Officials said these facilitators will make recommendations in terms of meeting municipal housing pledges “where regional governments are still required.” The Doug Ford government is using boosting housing supply as a primary justification for splitting up Peel, noting that housing starts in 2022 increased by nearly nine per cent.

It is possible the provincial government could dissolve further regional governments as part of this process.

This article was reported by CTV News