Mississauga and Brampton are set to gain their independence with the dissolution of the Peel Region, Global News has learned.
Sources say the Ford government is set to table legislation that would unravel the regional government by 2026.
A press conference is scheduled for Thursday at 1:30 p.m. at Queen’s Park with Minister of Municipal Affairs and Housing Steve Clark who is expected to announce the divorce.
The mayors of all three municipalities — Mississauga, Brampton and Caledon — are set to join it.
The Ontario government said they “will introduce legislation outlining steps the government is taking to ensure municipalities in the Region of Peel are positioned to support future growth.”
Currently, 42 per cent of property taxes paid by residents in each city is diverted to the regional government to pay for shared services including housing, waste management, transportation, paramedics and public health.
Mississauga Mayor Bonnie Crombie has also scheduled a news conference for Thursday afternoon.
Meanwhile, Brampton Mayor Patrick Brown is set to bring the entire city council to the provincial legislature to make his case for additional financing for the deal.
Multiple sources tell Global News they are widely expecting a regional facilitator will be appointed with a view towards determining how best to divvy up the shared infrastructure. Sources said it could include a panel of facilitators that would “determine the costs” associated with the split.
While provincial and municipal officials were reluctant to speak about the potential separation, behind the scenes one senior municipal source told Global News that “all indications” point to a split.
Other politicians within the region told Global News scheduled meetings in Peel Region were abruptly cancelled this week, suggesting preparation for a provincial announcement about the future.
Separating the two cities, however, is seen as a complex undertaking because of the list of services Brampton, Mississauga and Caledon share through Peel Region.
Officials in Brampton have argued that some infrastructure, paid for by the whole region, was built in Mississauga and that the city would owe up to a billion dollars in a divorce.
Mississauga has argued that its larger tax base has added to the region’s bottom line, has paid for growth in Brampton and allowed its northern neighbour to hold the line on tax increases.
While Premier Ford indicated that three cities would be taken care of financially if the province follows through with the split, the government wouldn’t say whether Queen’s Park would cover the difference in costs.
Treasury Board President Prabmeet Sarkaria, a Brampton-area MPP, wouldn’t say whether the province has budgeted for a split or the costs associated with eliminating Peel Region.
“We’re going to make sure Mississauga, Caledon and Brampton, everyone has been consulted and there will be a process for that,” Sarkaria told Global News.
“The premier has been speaking to many of the merits over the past couple of weeks and will make sure everything will be taken into consideration.”
The future of Caledon, the third municipality that makes up the Region of Peel, remains unclear.
Clark announced in November that he would appoint facilitators to assess six regional governments – including Peel Region – and look at the best mix of roles between upper-tier and lower-tier municipalities with an eye to expanding “strong mayor” powers beyond Toronto and Ottawa.
Ford said last week that he believed Mississauga and Brampton are large cities that can stand alone.
Ford said the goal of any changes would be to ensure the municipalities have equal or better service.
“If one region is taking more money than the other, we’re going to have to make sure that’s split equally,” he said last week as he hinted a decision on Peel Region was coming “very soon.”
Mississauga’s press conference is scheduled for 3:30 p.m. on Thursday.
— with files from The Canadian Press