Financial sustainability for municipalities means predictable and reliable funding. Rising operating and capital costs and limited revenue streams, however, make this a challenge, particularly as growth continues.
Whitby faces many complex budget challenges including aging infrastructure, the need to invest in Council-approved initiatives like the Whitby Sports Complex, and a new fire hall and 20 new firefighters to support growth in the community. Provincial policy changes and downloading, such as the loss of over $5 million to-date in developer payments to the Town for future purchase of parkland due to Bill 23, further impact the Town’s bottom line. In addition, data shows nearly a third of municipal spending now goes to services that are the Province’s jurisdiction, resulting in a funding gap of $4 billion annually across Ontario (source: Association of Municipalities of Ontario). Municipalities, however, are responsible for about 60 per cent of all public infrastructure (source: Federation of Canadian Municipalities).
For every residential property tax dollar collected, 35 per cent (or approximately one-third) stays with the Town of Whitby. The balance of property taxes are collected on behalf of the Region of Durham (52 per cent of the property tax bill) and the School Boards (13 per cent of the property tax bill) and sent to them accordingly.
In the Town’s recent Community Survey, when asked about the single most important issue facing Whitby today, participants listed taxes as one of their top three.
This is why we are advocating for:
- a review of existing funding arrangements with the provincial and federal governments to ensure predictable and ongoing funding modes support residents’ quality of life (source)
- continued grant programs from other levels of government that align to municipalities' need for infrastructure funding to enabling growth
- new and innovative funding initiatives to share the cost of growth across all levels of government (source)
- new Tri- Government Funding Models to support infrastructure, both new and existing (source)
- the redistribution of the Provincial Land Transfer Tax, HST, and GST to better support municipalities in building to support growth (source)