Why Ontario Cities Are Sitting on 10 Billion in Cash Artwork

The Missing Middle with Mike Moffatt and Sabrina Maddeaux

Welcome to the Missing Middle, a podcast about why the middle class in Canada is disappearing. We hope to help you understand why life is becoming unaffordable for so many in this country, and what can be done to reverse course.

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The Missing Middle with Mike Moffatt and Sabrina Maddeaux

Why Ontario Cities Are Sitting on 10 Billion in Cash

February 19, 2025 • Cara Stern, Mike Moffatt, and Meredith Martin

In this episode, Sabrina Maddeaux and Mike Moffatt discuss the complexities of development charges in Ontario, highlighting how municipalities have accumulated over $10 billion in unspent infrastructure funds. They explore the implications of these taxes on housing affordability, the political dynamics influencing their increase, and the growing public awareness of the housing crisis.

Chapters:

00:00 Introduction

01:28 Understanding development charges

02:10 The accumulation $10 Billion in unspent infrastructure funds

04:28 Cities are sitting on huge piles of cash but it’s totally above board

06:30 The impact of development charges on housing affordability

08:11 The economy doesn’t care about your intent

09:30 Mike gets in a fight with a city councillor over dev charges

11:20 How a pile of cash improves bond ratings

13:00 Public awareness and pressure for change

15:00 Why Conservatives okay with such high D.C.s

17:07 Shout out to Burlington, Vaughn and Mississauga