Draft 2021 Budget Guidelines report

Council is considering setting a guideline of a 3% all-inclusive (municipal, education, sanitary surcharge) increase for a typical property taxpayer in 2021.

A recommended guideline would be considered by the Finance Committee on July 13, 2020 with approval of the direction expected at the regular Council meeting on July 27, 2020.

The cost to maintain existing services levels would be $5.8 million. That cost includes $2.8 million directly related to impacts from COVID-19. 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. The recommended 3% increase would leave a shortfall of $3.8 million in the funding needed to maintain existing service levels.

"However, staff are very cognizant of the taxpayer’s ability to pay, particularly in these unprecedented circumstances," staff state in the report to Council. "If this guideline is approved, 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."

Between February and May, the City undertook consultation on community priorities to inform the development of the 2021 Budget. Feedback from the consultation is outlined in a What We Heard report that’s available at peterborough.ca/budget.