What is a Strong Mayors Budget?

    The Municipal Act requires the Town of Whitby Mayor, as Head of Council, to prepare a proposed budget on or before February 1 of each year. 

    On June 16, 2023, the Minister of Municipal Affairs and Housing announced that the Town of Whitby would be one of 26 other municipalities granted “Strong Mayor Powers” (“SMP”) under the Municipal Act. These municipalities are in addition to the City of Toronto and The City of Ottawa, which have had SMP since the beginning of the 2022 to 2026 term of Council. The effective date for Whitby’s (and the other 25 other municipalities) was July 1, 2023. 

    In 2024, the Town's first Strong Mayor's Budget was adopted. This multi-year budget covered 2025, 2026, and 2027.

    Why do I keep reading that Whitby has the highest property taxes?

    I’m aware of recent media coverage indicating Whitby has the highest property tax rates in the GTA – however this information is not based on apples-to-apples comparisons. Whitby is middle of the pack among the lakeshore municipalities when it comes to property taxes. When ranking municipal property taxes, it’s important to use the same housing values to start and look at services provided and revenue sources available (where our money comes from).

    Revenue Source Comparison:

    For example, Ajax and Pickering have casinos, meaning their municipalities benefit from casino revenues, while the City of Toronto has a Land Transfer Tax as a revenue source. Whitby doesn’t have the benefit of either. To help offset impacts on taxpayers, we are working to implement our own revenue sources. One example is the new Municipal Accommodation Tax (MAT) approved earlier this year by Council. The MAT is charged to visitors to the Town and collected from Whitby hotels, motels, and other accommodations. The Town has also been applying for and receiving millions in federal and provincial grants to help fund Town capital projects.

    Service Delivery Comparison:

    Whitby is only one of two municipalities in Durham Region that provides its own waste collection service to residents. That means the Town’s budget is impacted by having to maintain equipment, materials, staffing, service contracts, and more.  

    What This Means:

    Despite not having casino revenues and offering more services, the Town of Whitby is still mid-range when it comes to property taxes within Durham.

    Why are the Town’s budget increases higher than the rate of inflation?

    Inflation tracks the cost of the same basket of goods over time and is just one of many factors that impact the Town’s budget. 

    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 West Whitby.  Major budget pressures, in addition to inflation, can be summarized as follows:

    •  Maintaining Services and Service Levels - negotiated wage settlements and growth in the community (e.g. more lane km of roads to maintain, more parks to maintain);
    • Infrastructure Investments – paying for the Town’s share of new infrastructure to support growth and to keep the Town’s aging infrastructure in a state of good repair; and,
    • Preparing for Growth/Future – Investments in staffing and programs to help implement the priorities identified in the Community Strategic Plan, deliver on Whitby’s Housing Pledge (18,000 new homes by 2031).  There is a $1.5 million impact on the 2026 just for the phasing in of the 20 new firefighters and Whitby Sports Complex.

     Additionally, provincial policy changes and downloading also impacts the Town’s bottom line. For example, proposed changes in Bill 17 may shift the cost of growth-related infrastructure from developers to taxpayers. 

    How are taxes calculated in Whitby?

    Residents pay property taxes to cover the cost of services provided by the Town of Whitby.

    There are three tax rates on your property tax bill:

    • The Municipal tax rate set by the Town of Whitby represents 34 per cent of the total property tax bill.
    • The Regional tax rate set by the Regional Municipality of Durham represents 55 per cent of the total property tax bill. .
    • The Education (or School Board) tax rate set by the Province of Ontario represents 11 per cent of the total property tax bill. 

    The Town is responsible for collecting property taxes on behalf of the Region of Durham and the School Boards. 

    Some of the Municipal services provided by the Town through taxes include snow clearing, road repair, fire and emergency services, parks maintenance, and libraries. The Region provides services like policing, ambulance, Regional road maintenance and repair, and transit, to name a few.  The last service provided by your property taxes is the school system support and the rates for this are approved by the Province.

    Each budget year, the Town determines how much money is needed to maintain our services and provide any service enhancements. This total cost is divided by the total assessed value of all properties across Whitby. The Municipal Property Assessment Corporation (MPAC) assesses all properties across Ontario. MPAC determines each property value and provides them to the Town each year.

    Residential homes are assessed using the direct comparison approach, in other words, what similar homes are selling for in the area.  If you have purchased a newly built home you can use your purchase price to calculate an estimated tax levy until the property is fully assessed by MPAC.

    Final municipal tax rates for the year are determined after Whitby Council and the Region of Durham approve their annual budgets, and the Province of Ontario establishes the education rate.

    What Happens to Property Taxes After a Province-Wide Reassessment?

    When there is a province-wide re-assessment that increases the overall assessment values in the Town, Whitby, like all municipalities in Ontario, will reduce the property tax rates in order to collect the same amount of property taxes as a starting point for the budget.  

    Property owners with re-assessments at the average of the MPAC increases should not see a change in their property tax bills due to re-assessment.  While property owners with re-assessments that are lower than average or higher than the average re-assessment changes, should see a decrease or increase, respectively, to their tax bills due to province-wide re-assessments by MPAC. More information on how re-assessments work and the impact to taxes/tax rates is available in this video created by MPAC: