Ontario to launch financial audits of six GTA municipalities

Ontario is moving ahead with planned audits of some GTA municipalities after officials in those communities raised concerns about losing out on hundreds of millions of dollars of revenue as a result of the province’s decision to slash development charges.

In a press release issued on Thursday afternoon, the Ford government said that it was initiating a procurement process to identity third parties to review the finances of Toronto, Mississauga, Caledon, Brampton, Newmarket and the Region of Peel.

It said that it intended to use the audits, which will be conducted later this year, “to reach a shared understanding” about the potential impacts of changes to development-related fees and charges resulting from Bill 23.

“We are working with our municipal partners to get a factual understanding of their finances to ensure development charges, and the ability to invest in local services and projects, are supporting rather than hindering housing supply growth,” Minister of Municipal Affairs and Housing Steve Clark said in the press release. “This is critical to ensuring all levels of government work together to tackle the housing supply crisis and reach our goal of 1.5 million homes by 2031.”

A number of municipalities have warned that the elimination of some development fees and charges will cost them hundreds of millions of dollars and ultimately limit their ability to meet the ambitious housing goals set out by the province.

But Premier Doug Ford has repeatedly cast doubt on those claims.

He told reporters in December that he “knows there’s waste” to be found at Toronto City Hall and that it is “our job as prudent fiscal managers for the taxpayers to drive out the waste.”

He has also accused Mississauga Mayor Bonnie Crombie of refusing to “play in the sandbox” over her criticism of Bill 23.

“I don’t know what her issue is,” he said back in December.

Toronto officials have said that the city stands to lose out on $200 million in annual revenue as a result of the changes in Bill 23.

They have also said that without a funding commitment from the province, the city may have to halt work on a number of affordable housing projects as soon as this summer.

Mississauga, meanwhile, has indicated that it could lose approximately $1 billion over the next decade.