Brampton Offers New Neighbours Accountability and Transparency

TORONTO — March 6, 2014—The Ontario Home Builders’ Association (OHBA) applauds the City of Brampton for taking the first steps in providing greater transparency and accountability to new neighbours. The Capital Project Finance Review – Status Report supports OHBA’s recommendations for greater fairness and accountability when allocating a New Neighbour Tax for community infrastructure projects.
“Brampton has done a service to new neighbours – new-home owners and new employers – by issuing this status report and other municipalities should follow their leadership,” said OHBA CEO Joe Vaccaro. “New neighbours have a right to know where their taxes are being spent on approved community-growth projects. Brampton is heading in the right direction ensuring that new neighbours are treated with fairness.”
The Brampton report identified over $800 million of approved but unspent capital funds, with 68 per cent generated through the New Neighbours Tax (development-related). The OHBA consultation document noted that new neighbours already pay their fair share to municipal, provincial and federal government for growth-related projects and contributed over $1.8 billion to municipalities through development charges in 2012. This is an increase of 40 per cent from the previous year and doesn’t include any additional charges municipalities lay on new residents (i.e. Section 37, Parkland Dedication cash-in-lieu and voluntary charges). The OHBA report stated that municipalities often don’t spend money collected from new residents on projects necessary to supporting growth.

“Growth pays for growth, but more often than not, new neighbours are unaware of what they are paying for in their communities,” said OHBA President Eric DenOuden. “We are recommending that the provincial government develop a transparent system that holds municipalities responsible for how these funds are being allocated and hold them accountable if they are mismanaged. OHBA believes that affordability and fairness is the key to the success of this province and new neighbours deserve to understand where their taxes are going. The City of Brampton Report is the first step in creating this system.”