Brampton city officials are sounding the alarm over new provincial legislation they say could lead to higher property taxes and delayed or cancelled infrastructure projects.
Bill 17 — the Protect Ontario by Building Faster and Smarter Act — received Royal Assent on June 5. While the Ford government says the law is designed to accelerate home construction by deferring development charges (DCs) until after project completion, Brampton staff warn the move may create a “perpetual $84 to $112 million shortfall” in city reserves.
At a council meeting on June 11, Brampton Treasurer Nash Damer and Planning Commissioner Steve Ganesh outlined the financial strain the new law could cause. By delaying the collection of DCs — which typically fund roads, transit, fire stations, parks, libraries, and other growth-related services — the city would effectively be forced to front the cost of infrastructure on behalf of developers.
“The delay in collection of DCs essentially makes the city provide funding to the developers during that period — funding that would have otherwise come from the banks,” Damer said. “This really takes about $100 million from city reserves.”
City staff estimate a yearly reduction in DC revenue between $13 to $21 million, with an additional $1.8 to $2.9 million annual cost to taxpayers due to increased borrowing and inflation. Without provincial compensation, Brampton may need to raise property taxes, take on more debt, or scale back capital projects.
An estimated $567 million in already-approved, DC-funded projects are now considered at risk, staff told council.
Mayor Patrick Brown and council members expressed unified concern, stating that they will lobby Queen’s Park for compensatory funding to avoid burdening taxpayers.
“Brampton supports Ontario’s housing goals,” said Ganesh. “But Bill 17 removes essential municipal tools needed to create livable communities. Without alternative revenue sources, tax rates will increase and key projects will be delayed or cancelled.”
The city is now formally opposing the amendments under Bill 17 and urging the province to provide additional funding to offset the projected shortfalls.
Brampton’s housing target under Bill 23, passed in 2022, is 113,000 new units by 2031. The Ford government says that easing the financial load on builders by deferring development charges is key to hitting these goals.
However, city officials argue the legislation shifts the financial burden onto municipalities and residents, potentially threatening the sustainability of public services and infrastructure that support safe, inclusive growth.