City says it will assess long-term financial impacts before deciding on participation
CAMBRIDGE, Ont. — The City of Cambridge says it is taking a cautious approach to a newly announced housing infrastructure funding proposal from the federal and provincial governments, emphasizing the need to protect local taxpayers while supporting future growth and housing affordability.
The announcement, made jointly by the Governments of Canada and Ontario, outlines proposed investments connected to municipal development charge reductions aimed at accelerating housing construction and improving affordability across the province.
Municipal development charges are fees collected from developers to help fund infrastructure required to support new growth, including roads, water systems, parks, recreation facilities, and emergency services. The proposed funding initiative is expected to encourage municipalities to reduce those charges in exchange for provincial and federal financial support.
Cambridge officials said the city will now conduct a detailed review of the program before determining whether participation aligns with the municipality’s long-term financial and infrastructure priorities.
City examining financial implications of participation
In a statement released Tuesday, the city said it plans to carefully assess the potential impacts of the program on municipal finances, infrastructure planning, and taxpayers.
Infrastructure demands continue to grow
As one of Ontario’s fastest-growing communities, Cambridge continues to face increasing pressure to expand critical infrastructure and municipal services to accommodate residential and commercial growth.
The city said ongoing investments are required in roads, water and wastewater systems, recreation facilities, parks, emergency services, and other community amenities needed to support a growing population.
City Manager Rob Axiak said Cambridge has consistently advocated for infrastructure funding models that distribute costs fairly without placing additional burdens on existing residents.
“Cambridge has consistently advocated for growth-related infrastructure to be funded in a way that is fair, sustainable, and does not place additional pressure on existing taxpayers,” said City Manager Rob Axiak. “We welcome the opportunity to review the details of this announcement and will undertake a thorough assessment of the program’s financial impacts, infrastructure funding requirements, and long-term implications for our community before making any decisions.”
The city did not provide a timeline for when its review of the funding proposal would be completed.
Mayor raises concerns about potential tax burden
Mayor Jan Liggett said the municipality supports housing affordability efforts but stressed that existing homeowners should not bear the financial cost of development-related infrastructure.
Municipal leaders across Ontario have increasingly raised concerns about balancing housing growth targets with the rising costs of servicing new developments, particularly as infrastructure expenses continue to climb.
Liggett said Cambridge taxpayers should not face higher property taxes as a result of reduced development charges.
“Cambridge taxpayers cannot be expected to absorb additional costs through higher property taxes and any program we participate in must ensure that the financial burden is not shifted onto existing residents,” said Mayor Jan Liggett. “We also want to see a clear and transparent mechanism that ensures any reductions in development charges are actually passed through to home purchasers and in fact contribute to improved affordability.”
The mayor’s comments reflect broader concerns among municipalities about whether development charge reductions will deliver meaningful savings for homebuyers while still providing local governments with adequate funding for infrastructure expansion.
City to continue discussions with provincial and federal partners
Cambridge said it will continue monitoring additional program details as they become available and plans to work with municipal, provincial, and federal partners throughout the evaluation process.
The city stated that any future participation in the program would need to support housing construction objectives without compromising Cambridge’s financial sustainability or creating additional costs for local property taxpayers.
Officials also indicated that more information will be shared publicly once further details of the funding framework are released by senior levels of government.
The housing infrastructure proposal comes as municipalities across Ontario continue to navigate rapid population growth, increasing housing demand, and mounting infrastructure requirements tied to provincial housing targets.