Elizabeth Roy, Mayor of the Town of Whitby, yesterday indicated a coming tax hike for residents — but not because of its reinvestment in utility provider Elexicon.
“I’m seeing misinformation circulating about Elexicon dividends and their impact on the Town of Whitby’s budget and I want to provide clarity and context,” she said in an open letter.
“The actual impact is a $3.2 million reduction in revenue to the town in 2026. This is one of several factors that will influence next year’s budget – alongside inflation, growth-related costs, provincial downloading, and aging infrastructure,” said the mayor.
The mayor did not disclose the reasons for the $3.2 million reduction.
For 2025, Whitby had set its budget with 3.99 per cent tax hike – one of Durham’s lowest – down from the staff recommended 5.7 per cent (see below).
Elexicon Investment
In September, it was publicly announced that Elexicon and its municipal shareholders – including Whitby, Ajax and Clarington – are making a collective equity investment of more than $62 million into the company (see below). Whitby Council endorsed this strategic direction at a meeting in August.
“This is not a loss of funding – it is a reinvestment,” Roy said. Claims that this will cost Whitby taxpayers $12 million or trigger a significant property tax increase in 2026 are not accurate.”
She said the Elexicon shift was anticipated. “In fact, council began reducing the town’s reliance on Elexicon dividends in the operating budget as early as 2023. We planned ahead.”
Roy pointed out that Elexicon is entering a period of significant growth. “This reinvestment directly benefits all shareholder communities. In Whitby this means supporting essential projects – including new housing, the future Whitby hospital, the new Sports Complex, and priorities outlined in our Community Strategic Plan.”
Reserve Fund
When dividends resume, she said, they will be placed in a dedicated reserve fund – not used to balance the annual operating budget. This is a more sustainable and fiscally responsible approach, similar to how other municipalities, [as Clarington has done, and] like Pickering, manage revenues from sources like casinos.
“This direction is strategic, forward-looking, and designed to support Whitby’s long-term growth and financial stability,” Roy said..
Learn more about the town’s 2026 budget by visiting connectwhitby.ca/budget and reading my open letter.