Halton has identified, through the Fairness for Halton campaign, a current infrastructure deficit of nearly $300 million. In addition, with the Places to Grow requirements, the combined municipal - provincial infrastructure needs in Halton to 2031 are expected to reach at least $8.6 billion. Municipalities have growing responsibilities for a greater amount of the infrastructure, yet much of the costs for infrastructure are borne by our local households through their property taxes. A new deal is required to ensure sustainable funding for municipalities.
Halton Region and local Municipal Councils have reached a
unanimous decision to work together to resolve our infrastructure needs (
11KB). We are asking that municipal infrastructure be recognized as a priority by the federal and provincial governments.
At the Administration and Finance Committee meeting on November 14th, 2007, the
presentation by Halton Region CAO Patrick Moyle (
88KB) identified the current state of our infrastructure deficit and the position of the federal government, with the large surpluses, to assist us. This year the federal government is expecting a $13.8 Billion surplus. By 2013 there will be a total surplus of $64.6 Billion. This is an astronomical amount, and it is important that the federal government take action now to assist municipalities. The federal government must recognize municipal responsibilities and the need for infrastructure funding, as federal support is long overdue.
Why is Halton campaigning for fairness?
- Halton is a growing community committed to maintaining an excellent quality of life for its residents through the development of complete and healthy communities.
- Halton’s public infrastructure and services however are not keeping pace with growth in the community
- Highways and roads have become increasingly congested
- Hospital emergency rooms cannot accommodate demand
- Children are being bussed to schools outside their neighbourhoods or accommodated in an increasing number of portables
- Community centres and recreational facilities are not available in many neighbourhoods.
Current funding models do not adequately reflect the cost of growth
- Existing funding models have resulted in an infrastructure deficit (roads, recreation and community centres, etc.) in Halton of over $300 million as of January 1, 2007.
- Restrictions in the Provincial Development Charges Act limit the recovery of costs from development charges. It is estimated that these restrictions currently cost Halton property taxpayers $32 million per year.
- Ontario is the only Province that requires municipal property taxes to pay for social and health programs. As a result, only 54% of property taxes in Halton are available to fund municipal infrastructure and services.
- Provincial funding for health and social services programs is not distributed equitably across the province. Halton and other GTA Regions receive $200 less per capita in health and social services funding than the provincial average.
- Halton is required to pay over $40 million per year to support social service costs in the City of Toronto through GTA Pooling.
- Property tax funding for the expansion of inter-regional transit, including GO Transit, is not affordable.
- Provincial infrastructure programs, which funded significant expansion of municipal infrastructure in previous decades, are no longer adequate.
- Provincial infrastructure commitments in Halton for hospitals, schools, and highways do not match the demands created by growth.
What does Halton want from the Province of Ontario?
- Immediate changes to the Development Charges Act to allow municipalities to recover the full cost of growth-related municipal infrastructure and GO Transit based on anticipated service level requirements.
- Immediate changes to the GTA Pooling and cost sharing requirements for health and social services to provide Halton the capacity to address the existing infrastructure and service deficits resulting from growth.
- Municipal infrastructure funding programs targeted at the infrastructure required to accommodate growth.
- Establishment of Provincial capital commitments which address existing deficiencies and match the timing of the delivery of Provincial infrastructure (hospitals, schools, highway, power, courts) to Halton’s growth requirements in the Provincial Places to Grow Plan.
- The Province’s Municipal Fiscal and Services Review is not timely enough. Immediate action is required to allow Halton to address current infrastructure deficits and respond to the objectives in the Places to Grow Plan.
Support from Halton leaders and municipal associations
- Ensuring that Ontario provides the right tools to resolve the infrastructure and service deficit is supported by the Regional Chair, and the Mayors of all four Local Municipalities, the City of Burlington, the Town of Oakville, the Town of Milton and the Town of Halton Hills.
- The Association of Municipalities of Ontario has cited that Ontario taxpayers have the highest property taxes in the country. In municipalities outside of Ontario, social services account for only 1.2% of municipal expenditures; in Ontario, social services account for 25% of municipal spending from the property tax base.
- In 2006, the Federation of Canadian Municipalities (FCM) stated that the property tax is regressive and an inappropriate source to fund local social services. In addition, FCM indicates the generally accepted figure for the size of the infrastructure deficit nationwide is $60 billion.
- The Provincial government, on its website fairness.ca, indicates that within the next 30 years over $100 billion will be needed to maintain Ontario’s existing infrastructure and prepare for future growth.