Draft 2025 Budget endorsed by City Council

Peterborough, ON – City Council has endorsed a Draft 2025 Budget that outlines investments in municipal services and infrastructure, with a 6.72% all-inclusive rate increase that equates to $10.44 per month per $100,000 of property assessment for the typical residential property.

Council is expected to consider final approval of the City’s 2025 Budget on February 3, 2025. City budget information is available at peterborough.ca/budget.

Through its budget deliberations that started in November 2024, Council cut spending in several areas and added back in funding that had been removed earlier in the budget process to reduce the property tax requirement. Council started with a 7.8% all-inclusive rate increase when the draft budget was initially presented.

As part of its efforts to reduce the tax requirement for residents and businesses, Council asked Peterborough County/City Paramedics and Peterborough Police Services Board to reduce their requested increases for 2025. Peterborough Paramedics reduced its funding request to $7,299,067, which is an increase of $488,270, or 7.2%, from 2024. Peterborough Police Services Board responded with a request for $37,802,241, which is an increase of $2,727,054, or 7.8%, from 2024 – after initially requesting an 8.8% increase.

Council made a wide range of changes to the City’s Draft 2025 Budget to reduce the property tax requirement by decreasing spending, increasing revenue and drawing from reserve funds.

Among the changes to the draft budget, Council:

Restoring $298,153 for Community Grants that had been cut from the draft budget
Adding a $500,000 interest-free loan for the replacement of the roof at Showplace Performance Centre
Increasing Transit fares by 25 cents to generate an estimated $125,000 in revenue
Reducing the proposed 2025 stormwater management funding by $620,000
Providing $250,000 from the Social Services Reserve to help fund architectural, engineering and planning services for the proposed new Brock Mission Housing Project that would create 50 transitional housing units
Drawing $904,000 from the Social Services Reserve for several housing and homelessness services enhancements, including extending the Trinity Community Centre overnight drop-in program to a full-year service, increasing funding to the Housing Stability Fund, and increasing the capacity of the Brock Mission shelter to 40 beds from 32 beds
Restoring funding for discretionary benefits, which had been proposed to be reduced, at a cost of $235,695
Reducing preventative maintenance at municipal facilities for a savings of $153,000
Ending the lifeguard service for swimming at Roger’s Cove for a savings of $39,995 (lifeguard service continues to be provided at the nearby Beavermead Park beach)
Ending the maintenance of the Trent-Severn Waterway canal south of the Lift Lock in winter for skating for a savings of $100,000
Reinstating a $150,000 annual payment to the Downtown Business Improvement Area that had been proposed to be removed
Removing a $132,500 expense for contracting streetscape maintenance services to the Downtown Business Improvement Area as the City will directly provide the service in 2025
Reducing spending on graffiti management, forestry contractual services, and street cleaning totalling $60,000
Reducing Transit expenses for cleaning supplies and contractual services by $75,000
Reducing the budget provision for insurance premiums by $115,000

Through its 2025 Budget, Council has endorsed transitioning stormwater funding from the tax base to a dedicated user fee effective April 1, 2025, using a simplified interim rate structure. The proposed user fee will replace what is being paid by property owners through the property tax base and place a charge, or a user fee, on the utility bill. Unlike many municipalities that have dedicated stormwater networks and raise the necessary funding through a user fee, the City of Peterborough currently funds the program through the tax base.

Benefits to implementing a Stormwater Management Fee include:

Dedicating a funding stream allocated back to providing the service
Awareness and transparency showing owners what they pay for the service and what is required for capital and operating costs
Fairness where owners may pay based on stormwater contribution as opposed to property assessment
Introducing the opportunity for economic incentives, giving owners the opportunity to reduce their costs associated with delivering the service

The Budget details investments in municipal services and infrastructure, such as water and wastewater infrastructure and treatment, garbage collection, the Green Bin program, the landfill and composting facilities, affordable housing, homelessness services, roads, recreation and parks, arts and culture, policing, fire services, paramedics, and public health.

The Draft 2025 Budget as presented on November 4, 2024 includes $411 million in operating expenses, with $185.9 million from property taxes and the remainder funded by other revenues such as grants from other governments, user fees, and service charges.

On the capital side, the Draft 2025 Budget as presented on November 4, 2024 includes $147.4 million for 174 projects such as the Transit Garage Replacement, police station renovations, major infrastructure work on Brealey Drive between Lansdowne and Sherbrooke streets, updating and replacing equipment at the Wastewater Treatment Plant, and various road projects.

The City started the 2025 Budget process in March 2024 with community consultation, including a survey and public meetings that were held through March and April. Council held General Committee meetings in June to review information and consider input from the community. Council considered detailed breakdowns of budget implications for services and capital projects before recommending guidelines for preparing the Draft 2025 Budget.

Council heard from public delegations on the Draft 2025 Budget at a meeting on Tuesday, November 12, 2024.

The City held informal public meetings on November 7 and November 12, 2024 to present information, respond to questions and get feedback on the Draft 2025 Budget ahead of Council’s deliberations on the budget.

At its meeting on December 9, 2024, Council gave final approval to certain projects and programs in the 2025 Budget to allow that work to proceed while Council considers the remainder of the Draft 2025 Budget. Council also approved the 2025 User Fees and Charges.