The Missing Middle with Mike Moffatt and Sabrina Maddeaux Why Ontario Cities Are Sitting on 10 Billion in Cash
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Feb 19, 2025 Uncover the mystery of Ontario's $10 billion in unspent infrastructure funds. The discussion highlights how development charges are driving housing prices up, particularly affecting young potential homeowners. Explore the political dynamics at play as municipalities sit on vast reserves while struggling with timely investments. Misleading claims about rising charges spark debate, revealing a stark disconnect between intent and reality. As public awareness grows, the pressure mounts for change in municipal policies impacting housing affordability.
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Development Charges Overview
- Development charges are one of many housing taxes imposed by Ontario municipalities on new constructions.
- These taxes, including community benefit charges and parkland dedication fees, are meant for new infrastructure.
$10 Billion Unspent
- Municipalities have accumulated over $10 billion in unspent infrastructure funds from development charges.
- This is partly due to more housing being built than planned and charges collected for "phantom projects."
Unspent Reserves
- While cities must spend development charge revenue on the designated infrastructure, they face no time constraints.
- This allows unspent reserves to grow while cities earn interest, even amidst infrastructure needs.