For Immediate Release
May 23, 2019
STATEMENT: EY Study Reaffirms Mississauga Will Realize Long-Term Savings Should Province Grant Independence
“I’d like to thank Ernst & Young (EY) for presenting the results of their comprehensive study to Regional Council today which reaffirms Mississauga’s findings: Mississauga only stands to benefit in the long-term by leaving the Region of Peel.
Today’s meeting demonstrated that any claims that there will be a financial hit or risk to Mississauga taxpayers should we leave the Region of Peel are both misleading and not factual. These claims only serve to distract from the fact that separation is in the best interest of Mississauga taxpayers.
Facts matter.
The benefits far outweigh any risks. Highlights of the report include:
- Savings: If Mississauga were to separate from the Region, Mississauga taxpayers would see up to $84 million net savings annually. Over 10 years, that’s nearly $1 billion dollars in savings. These savings are above and beyond the additional costs Mississauga will incur to deliver new services currently delivered by the Region
- Cost: Yes, there will be one-time, short term costs to Mississauga totalling roughly $40 million, all of which can be covered by the $84 million in savings. The costs are short term, but the savings are forever. I think all Mississauga residents will agree, investing $40 million for a return on investment of $1 billion is a good investment for taxpayers
- Debt: Yes, Mississauga would assume $1 billion in debt upon the Region’s dissolution, but 99% of this would not be on the tax bill
- Payout: There isn’t one. The study confirms that as long as the asset is maintained by the public, there is no requirement for Mississauga to pay Brampton or Caledon anything. Furthermore, Mississauga has historically paid 60% of the tax bill at the Region, sometimes up to 77%. The math does not add up for Mississauga to pay anything upon separation when we’ve consistently paid the lion’s share of the costs
It’s easy to see why Brampton and Caledon would want to maintain the status quo given they’ve been benefitting at Mississauga’s expense for the past 45 years.
My job and that of Council is to work in the best interest of Mississauga taxpayers. This new study confirms our analysis and that separation is in their best interest.
It’s important to note that all four levels of government signed off on the terms of the study and the final report, including the assumptions and findings. Questioning the legitimacy of the findings is both disingenuous and disappointing and is not fair to the staff that worked around the clock to meet the province’s deadline
The province now has all the information to make an informed decision and this matter is now out of our hands.
Whatever the future may hold for our city, I will work closely with Council and staff to ensure that the interests of our residents are protected as we work together to move Mississauga forward.”
– Bonnie Crombie, Mayor of Mississauga