Following Toronto's lead, Region of Waterloo petitions Ontario government to cover deficit

Region of Waterloo council has sent the Ontario government a letter outlining its concerns with the More Homes Built Faster Act, formerly known as Bill 23.

The letter, written by Coun. Doug Craig and passed by council Wednesday night, outlines how the region's rising costs are similar to the high costs being faced by the City of Toronto.

It asks if the Ontario government will also cover part of the Region of Waterloo's operating deficit, after Steve Clark, the minister of municipal affairs and housing, promised last month to cover a third of Toronto's $700-million budget shortfall.

"This action by your government is patently unfair to the citizens of the Region of Waterloo who through their provincial taxes are now subsidizing the City of Toronto's budget deficit," Craig wrote.

He also noted the region is facing a 9.8 per cent budget increase to deal with the "high cost of transit fuel to the rising costs of necessary infrastructure works."

Waterloo mayor also concerned

Earlier Wednesday, Waterloo Mayor Dorothy McCabe said in a public statement she's concerned the More Homes Built Faster Act will actually slow down future growth in her city.

"Bill 23 passes the financial burden of building growth related infrastructure directly to current residents and directly to local property tax bills," she said in the statement, adding that the financial losses will be equivalent to a seven to 10 per cent tax increase for Waterloo residents.

"Ironically, Bill 23 will not actually build more housing quicker," McCabe said. "It will have the opposite effect. Without the [development charge] funding to install water and sewer mains and transportation networks, no new homes will be able to be built."

She also expressed concerns that there was a lack of incentive for developers to pass on any of their savings to home buyers or renters. Similar concerns were also shared earlier by Cam Guthrie, the mayor of Guelph and the chair of Ontario's Big City Mayors (OBCM).

McCabe said there are currently about 22,000 housing units, in various stages of the development process, being built across the city of Waterloo.