As the Region of Peel begins discussion of its 2019 budget, the recent provincial announcement to review regional government has created a great deal of fear and uncertainty with how essential services will be funded in the future.

The Region of Peel receives $670 million from the provincial government, or 27 per cent of the region’s revenue, mostly for cost-sharing programs mandated by the province, Peel chief administrative officer David Szwarc said during a presentation to council on Thursday (Jan. 17).

Peel police also receive $17 million in grants from the province, Szwarc added.

But, one of the more alarming changes the province is proposing is ending the region’s ability to levy development charges to builders.

Municipalities use development charges to fund services resulting from growth, such as: sewers, roads, libraries and recreation facilities, and placing these costs on homeowners in the form of user fees for water, wastewater and garbage charges.

“This has wide ranging consequences,” Szwarc said. In other areas of the province where this has happened has resulted in a 73 per cent increase in utility rates.

Szwarc said the change has been described as making housing affordable, but it is a “thin veil” over downloading costs to municipalities.

“I am fearful the next big challenge the region will face are unbudgeted and unfunded cuts,” said Peel Regional Chair Nando Iannicca, referring to the provincial announcement that said it was cutting tuition fees to universities by 10 per cent and then telling universities they have to fund the cuts. “We should brace for them.”

Stephen VanOfwegen, Peel Commissioner of Finance and chief financial officer told council “there is an elevated risk” to the level of funding the region receives from the province.

“It has been made clear everything is on the table,” added VanOfwegen, referring to cuts. The province has indicated there will also be changes to the municipal growth plan.