Financial sustainability for municipalities means predictable and reliable funding. Rising operating and capital costs, limited revenue streams, and recent legislative changes have resulted in a funding gap, impacting the Town's ability to deliver services affordably while maintaining existing and building new growth-related infrastructure, and supporting residents’ overall quality of life.
Data shows that nearly a third of municipal spending now goes to services within the Province’s jurisdiction, resulting in a $4 billion annual funding gap 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).
In addition, for every residential property tax dollar collected, only 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.
Whitby Council recently supported Mayor Elizabeth Roy’s motion formally calling on the Province to address the $4 billion annual shortfall caused by municipalities funding provincial responsibilities through property taxes, and the $1.5 billion burden of social housing costs placed on municipalities. Affordability remains a top community priority.
This is why we are advocating for:
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a predictable revenue stream for municipalities that reflects the economic, social, and infrastructure demands associated with growth.
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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)
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a review of the requirement for municipalities to contribute 10 per cent of hospital capital costs
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continued grant programs from other levels of government that align to municipalities' need for infrastructure funding to enabling growth
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new and innovative funding initiatives to share the cost of growth across all levels of government (source)
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new Tri- Government Funding Models to support infrastructure, both new and existing (source)
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the redistribution of the Provincial Land Transfer Tax, HST, and GST to better support municipalities in building to support growth (source)