2021 Budget guideline

Council approved the 2021 Budget guideline on Monday, July 27, 2020, providing direction for the development of the City's Draft 2021 Budget, which will be presented to Council in November 2020 before holding a public meeting to get feedback from the community and then deliberating on the draft budget documents.

Instead of providing a guideline of a target all-inclusive property tax increase for the typical homeowner, Council asked staff to return with information splitting out essential services, discretionary services, and services that the City isn't required to deliver as well as comparisons with other municipalities and opportunities for cost reductions.

To maintain existing services levels would be $5.8 million (that cost includes $2.8 million directly related to impacts from COVID-19) and providing additional capital funding of $2 million would result in a $7.8-million budget increase, which would require a 5.14% increase in the all-inclusive property taxes for a typical homeowner. Staff had recommended a 3% all-inclusive (municipal, education and sewer surcharge) increase, which would still leave a shortfall of $3.8 million in funding that would be needed to maintain existing service levels. During its General Committee meeting, Council didn't support setting a guidelines with a 3% increase for 2021.

"Staff are very cognizant of the taxpayer’s ability to pay, particularly in these unprecedented circumstances," staff state in the report to Council. "Presenting a budget that meets the guideline will have to involve a critical review of user fees and opportunities for new revenues, a more detailed review of escalating costs and opportunities to reduce them and potential service cuts."

Council had supported asking staff to report back to Council to seek up to an additional 0.5% all-inclusive increase if the Province and federal government announce stimulus funding as part of their COVID-19 pandemic recovery plans and a municipal funding share is required to access those funds for projects.

Council also endorsed that the annual earnings from investing the proceeds from the sale of Peterborough Distribution Inc. be directed toward enhancing funding for capital spending, such as repairing infrastructure.

Council requested reports from staff to Finance Committee on various items, including:

• potential savings that could be achieved based on a KPMG review of Social Services;
• maintaining City funding to Peterborough and the Kawarthas Economic Development Corporation, the Downtown Business Improvement Area, the Peterborough Humane Society, the Peterborough Family Health Team Network, and the Innovation Cluster at 2020 levels in 2021;
• directing that no new staff positions be added in 2021 unless they are self sustaining;
• options on potential actions to achieve savings and efficiencies in the transit operations budget;
• the impact of raising user fees by 5% to 10% in 2021; and
• information on zero based budgeting.

To help inform the setting of the 2021 Budget guidelines and the development of the Draft 2021 Budget, the City consulted with residents through public drop-in sessions as well as a survey on community priorities. A What We Heard report on the results from the budget survey is available online at peterborough.ca/budget.