Peterborough ratepayers who think their municipal tax pain is bad now had best brace themselves.

During the annual Mayor’s Breakfast held Thursday (November 21) at the Peterborough Golf and Country Club and presented by the Peterborough and the Kawarthas Chamber of Commerce, the news wasn’t good for those hoping for tax relief anytime soon.

Quite the opposite, as both Mayor Jeff Leal and the city’s chief administrative officer Jasbir Raina made very clear before an audience of local business leaders.

While the mayor’s address touched on a number of familiar touchpoints and related challenges such as affordable housing, infrastructure, homelessness, and economic development, the subsequent question-and-answer session saw both the mayor and Raina provide their takes on the budgetary pressures the city faces, and what that means not only in the short-term but for the foreseeable future.

“For the past 20 years, the (average) City of Peterborough property tax rate was 3.12 per cent,” said Raina, adding “This is not how smart cities do their business. These were purely band-aid budgets.”

“Two years back when I came (to Peterborough) for my interview, one of the questions asked was ‘What do you think of the city?’ I said ‘You have a pathetic infrastructure. It’s on the verge of decay.’ It’s a reality here. You can’t sustain yourself with 3.12 per cent (tax rate hikes).”

Noting that 90 per cent of city revenue is derived from taxes and user fees, Raina says the remainder is made up of grants provided through the good graces of upper levels of government. While helpful, he said, that funding has remained at the same level for years now while city expenses have risen dramatically and infrastructure projects and other capital project have been put off as a result.

“Our current model is in the ICU. Ontario’s 444 municipalities are crying for the help they need. What we need is a collaboration with the province where we develop a funding plan that is sustainable for the financial stability of the municipalities.”

“A lot of downloading has happened. It started in the early nineties and continued. Coolly, smartly, and stealthily, provincial budget deficits were passed on to the shoulders of municipalities. That has fallen in the laps of taxpayers.”

Noting “It took us 27 years to do repaving of downtown roads,” Raina said “We are at (a) 7.8 (proposed per cent tax increase) because we need it. The time is not far away that there will be a two-digit number.”

The municipal tax discussion at the event was timely, given that on Tuesday evening city council finished two days of deliberations on the city’s draft 2025 budget and its proposed 7.8 per cent property tax hike. Those meetings ended with the proposed tax hike increasing to eight per cent, although city council is aiming to bring it down to seven per cent.

Post-breakfast, Mayor Leal told kawarthaNOW that he and his council colleagues have to look at “the big picture” when presented with a draft budget.

“We’ve got to bring more investment into the city, and expand the businesses that are currently here. When I was given the great privilege of being mayor two years ago, one of the things I looked at was a number of things that were still on the books that needed to be done.”

“Frankly, I was embarrassed by the condition of the streets in downtown Peterborough. I thought ‘If I was going to bring a potential investor here and showed them downtown, and drove over the humps and bumps, what kind of impression would that leave?’ We want to be sure we’re ready for new investment to come and grow our community.”

Another major topic of interest, particularly in a roomful of business leaders and owners, was the future direction of economic development, the responsibility for which the city will assume in January as a result of council’s earlier decision not renew its agreement with Peterborough and the Kawarthas Economic Development (PKED) to provide a suite of services in the city and county.

During his address, Mayor Leal said economic development and employment land availability are “inextricably linked.”

“Residential taxpayers provide 80 per cent of our tax base while industrial-commercial accounts for 20 per cent,” he said, adding “That is an unhealthy ratio and is a big reason why residents have faced some steep tax rate increases over the last few years.”

“We need to dramatically increase the size of our industrial-commercial sector, but we face some well-known challenges. We have 65 square kilometres of (serviceable) land — a number that hasn’t increased in decades. In fruitful discussions with (County) Warden (Bonnie) Clark and neighbouring townships, I made it clear that annexation (of land) is off the table. I listened to them and that is not an option.”

“That’s why I’ve made discussions around collaboration and cross-border servicing such a priority. Peterborough is eager to partner with our neighbours to bring jobs and economic development to the region so we can share mutually from that initiative.”

While he acknowledged during his formal remarks that the clock is ticking fast toward the city’s takeover of economic development activity, Mayor Leal gave no indication of where things are at in terms of who will lead that department.

He later told kawarthaNOW that interviews for the city’s economic development head are now underway, adding that, while it’s not a requirement that the successful applicant live locally, “it would be our druthers” that he or she does — if not in the city, then in the region.

Asked if the head of economic development would be on the job come the first week of January when the city officially takes on responsibility for that area, the mayor said that’s the plan.

“We’re on an accelerated recruiting process. This is probably one of most important hires that the City of Peterborough will make. We want to make sure we get the absolute best candidate.”

Meanwhile, the County of Peterborough, which is also assuming responsibility from PKED for its portion of economic development and tourism, has already hired former PKED president and CEO Rhonda Keenan and former Peterborough and the Kawarthas Chamber of Commerce Sarah Budd to lead the county’s team, and has established a new economic and tourism office in the former Lakefield post office.

For his part, Raina came away thrilled for the opportunity to speak at the Mayor’s Breakfast, which was sponsored by Cogeco, Hydro One, Spotlight Home and Lifestyle, and Pinchin.

“They (breakfast attendees) deserve to hear, from the horse’s mouth, the true realities of what we are facing,” he said. “They should not feel city hall is a castle and information is being hidden and there’s hanky-panky going on.”

Raina added the gathering also presented him with the chance to remind people not to shoot the messenger when it comes to the budget and its related tax increase.

“Our (city staff) job is to tell them ‘Hey, this is the scenario.’ We present well-researched information and council makes decisions for the future, not for the present or to fix the past. How council does that is their arena.”

Referencing Mayor Leal’s earlier stated confirmation of his longer-range goal to see a sports and entertainment complex built in downtown Peterborough to replace the Memorial Centre, Raina said he respected the mayor’s “vision” but once again returned to fiscal policy.

“At the end of the day, where is the money? Who are the partners? It’s a good concept and of course we need it, but where is the money?”

In response to neighbourhood complaints and an dramatic increase in calls for service, Peterborough police will once again be arresting people who are openly using illicit drugs in the area surrounding the Trinity Community Centre at 360 Reid Street.

Located in the former Trinity United Church and operated by One City Peterborough with funding from the City of Peterborough, the Trinity Community Centre opened in November 2023 and provides services for people who are marginalized, unsheltered, or both, offering a daytime drop-in program with meals as well as an overnight program.

In a media release issue on Tuesday night (November 19), police announced they would be suspending their “Safer Public Spaces” approach to open-air illicit drug use in the Trinity Community Centre neighbourhood.

Under the approach, which was launched in October 2023, police officers who respond to a complaint about or observe people using illicit drugs outside in a public space request that they stop doing so and move to another location, such as the Consumption and Treatment Services on Simcoe Street where illicit injectable drugs can be injected legally.

With Safer Public Spaces, police do not arrest the person and seize the illegal drugs, unless the person refuses to comply with the request, has committed another criminal offence, or has an outstanding warrant for their arrest.

“We do not want to criminalize anybody who has an addiction — that is not our intent,” Peterborough police chief Stuart Betts said when announcing Safer Public Spaces. “Our intent is to ensure that they are provided with the resources they need and the direction they need to where they can go to safely use these substances.”

With the suspension of Safer Public Spaces in the Trinity Community Centre neighbourhood, police will instead arrest those observed using illicit drugs outside in a public space.

“In all cases, those arrested will be searched (after) arrest, in accordance with common law authority, and any illegal substances will be seized for destruction,” the media release states. “If charges are appropriate, they will be laid, but it may be enough to release unconditionally.”

Police add they will also investigate people found committing a criminal or provincial offence — including defecating on property, possessing stolen property, and trespassing — and, if appropriate, arrest and charge them.

It is not clear from the release if police were not previously investigating such incidents, although the release notes that their ability to respond depends on available police resources.

“As a police service, we know that providing compassionate care and a place to escape the weather and sleep is important, especially as we are entering the coldest months of the year,” the release states, adding that Trinity Community Centre plays a “vital role” for the unhoused population. “However, as police, we do not endorse criminal activity on the premises or in the surrounding community.”

According to police, there were 168 calls for service in the neighbourhood in 2022, a year before the Trinity Community Centre opened. In 2023, the number of calls for service increased to 261 and, in 2024, jumped to 700.

“We have been compassionate in our approach to those who are in need of the services provided by One City Peterborough at the Trinity Church location,” Chief Betts states in the media release. “However, the behaviours by some have created a situation that can no longer be adequately addressed through such means.”

“We continue to believe that many of those accessing the services at Trinity Church are in need of support, but our approach needs to respect the community safety and well-being for all, and we are being clear in what that will look like.”

The media release also states that, when it comes to the Trinity Community Centre property itself, the City of Peterborough, One City Peterborough, and the Peterborough Police Service will be working on an agreement “of both short-term and long-term solutions.”

Police say that their change of approach is a response to hearing from residents, businesses, and clients of Trinity Community Centre “that the current way is not working to fully address ongoing concerns and ensure a safe environment for all.”

Tuesday’s police announcement came at the end of two days of deliberations by Peterborough city council on the city’s draft 2025 budget, which includes a three per cent increase to the police budget. However, the Police Services Board has requested an 8.8 per cent increase to the police budget — which would add 1.44 per cent to the city’s property tax rate hike.

After city council completed its deliberations, the proposed 7.8 per cent tax hike had increased to eight per cent, exclusive of the budget requests of the police, paramedics, and health unit.

To keep the rate hike to seven per cent, council has asked city staff to report back with additional ideas to reduce spending and increase revenues and will request the Peterborough Police Services Board, Peterborough/County City Paramedic, and Peterborough Public Health to reconsider their 2025 budgets to keep the property tax increase within seven per cent.

Peterborough residents who were hoping to skate on the Trent Canal this winter, or swim at Rogers Cove with their kids next summer, will be disappointed with recommendations made by city council in its review of the city’s 2025 draft budget on Monday and Tuesday (November 18 and 19).

Saving $100,000 by not maintaining the canal rink for 2024-25 and saving $40,000 by eliminating lifeguards at one of the city’s two beaches are among the recommendations made by city council during the two days of budget deliberations, a process that ended up with a proposed property tax rate increase of eight per cent.

The increase — which doesn’t yet take into account the budget requests of the police, paramedics, and health unit — is 0.2 per cent higher than the draft budget’s proposed 7.8 per cent increase, and a full three per cent higher than council’s original goal of a five per cent increase.

Rather than five per cent, council is now aiming for a seven per cent increase. To achieve that goal, council has asked staff to report back with additional ideas to reduce spending and increase revenues. More significantly, council will also request that the Peterborough Police Services Board, Peterborough/County City Paramedics, and Peterborough Public Health — which Mayor Jeff Leal calls “the big three” — reconsider their 2025 budget asks to keep the property tax increase within seven per cent.

With less than three weeks before the final 2025 budget is scheduled to be presented to city council for approval, and not knowing how “the big three” will respond to council’s request, it’s unclear whether council will be able to achieve the seven per cent goal by December 9 or whether the budget review will extend into the new year.

As for the budget deliberations on Monday and Tuesday, council made several decisions to reduce the budget in some areas and to increase it in others.

For the Peterborough Public Library, which will be operating a second branch in the new Miskin Law Community Complex on Lansdowne Street, city council recommended saving $120,000 through a staffing reorganization that would see two staff positions eliminated and other staff paid less, with a subsequent reduction in operational services and programming.

Councillors also recommended that preventative maintenance and custodial costs for city-operated facilities be reduced by $153,000.

Along with no longer maintaining the Trent Canal rink and eliminating lifeguards at Rogers Cove, these recommended savings were included in a list of 25 “discretionary” funding cuts that city staff provided in the draft 2025 budget, if council wanted to further limit the property tax rate increase to its original goal of five per cent.

Of the four items selected from the list, council decided against reducing the preventative maintenance budget for city-operated facilities by the full $880,000 proposed on the list, choosing to reduce the budgetary item by 20 per cent.

Council also decided against reducing funding to 75 arts and social services organizations by 25 per cent to save $298,153, thereby continuing to fund the organizations in 2025 at the same level they were funded in 2024.

However, hours after making this decision, city council then decided against continuing to fund the Electric City Culture Council (EC3) next year, saving $177,000 that would have otherwise be added to the 2025 budget.

City council also decided against withdrawing $150,000 in funding to the Peterborough Downtown Business Improvement Area (DBIA), an annual amount the city had agreed to provide to the DBIA for 20 years in a 2017 settlement after the DBIA dropped its appeal to the Ontario Municipal Board of the city’s decision to allow a casino at 1400 Crawford Drive instead of in the downtown core. However, council also recommended withdrawing $132,000 for street cleaning services the city provides to the DBIA.

Other changes to the draft budget include restoring $235,696 in discretionary benefits to the 2024 funding level while eliminating a proposed climate change coordinator position.

As for additions to the budget, several were focused on the homelessness crisis in the city.

Council recommended an additional $264,000 to extend Trinity Centre’s overnight program for people experiencing homelessness for six months next summer, as well as $240,000 to extend the hours of the centre’s daytime drop-in program.

Council also recommended increasing the housing stability fund by $360,000 and providing $280,000 to Brock Mission for an additional worker to keep their bed capacity at 40 beds, with a further commitment to provide Brock Mission with $250,000 to support planning for the organization’s proposed 50-unit supportive housing project.

All the funds from these items would be drawn from the city’s social services reserve.

City council have recommended providing Showplace Performance Centre with a $500,000 interest-free loan, to be repaid over 10 years, so that the non-profit performance venue can replace its roof.

All the recommendations made by city council for the 2025 draft budget, as supplied by the city in a media release, are listed below.

• Adding $298,153 to the Draft 2025 Budget to restore funding to 2024 levels for community and arts groups that had been proposed for a 25% reduction in City funding in 2025
• That the Police Services 2025 budget request be returned to the Police Services Board for consideration
• That the Peterborough/County City Paramedics 2025 budget request be returned to Peterborough Paramedics for consideration
• That the Peterborough Public Health 2025 budget request be returned to Peterborough Public Health for consideration
• That the $150,000 payment be reinstated in the Downtown Business Improvement Area 2025 Budget, that the $132,000 funding for street cleaning be removed, and that the Public Works Division assume the streetscape maintenance within the DBIA
• That funding in the amount of $235,696 be provided to restore discretionary benefits to the 2024 funding level and that the monies be added to the Net Tax Levy
• That Trinity Community Centre overnight drop-in program be funded $264,000 to extend operations for six months next summer and be open year-round to be funded from the Social Services Reserve
• That the Housing Stability Fund be increased by $360,000 to support prevention and diversion to be funded from the Social Services Reserve
• That $280,000 be provided to Brock Mission for an additional worker to keep their bed capacity at 40 beds and not be reduced to 32 beds to be funded from the Social Services Reserve
• That $240,000 be provided from the Social Services Reserve to extend the operating hours at Trinity for the day time drop in program
• That the City shall provide a letter confirming the provision of $250,000 to be applied towards the costs of a business plan and preliminary studies, reports, and plans in support of a proposed 50 unit supportive housing project being advanced by Brock Mission and further that the said monies be derived from the Social Services Reserve
• That the single transit ride fare be increased by 25 cents to $3.25
• That free transit for youth and high school students be implemented by September 2025 at an estimated cost of $33,400 for September to December 2025
• That the budget increase for sidewalk reconstruction be set at a 1.5% increase
• That a $500,000 interest-free loan to be repaid over 10 years be provided to Showplace Performance Centre to assist with its roof replacement
• That Council opts not to renew funding to Electric City Culture Council at this time, in anticipation of the completion of a renewed Municipal Cultural Plan, which would provide further directions for the future of a culture council, including funding of $100,000 and the funding for the following programs, Poet Laureate, Individual Artist Grants, and Artsweek
• That $50,000 be transferred from the Water Treatment Reserve to the Zoo Mini Train Reserve, subject to year-end results
• Adding an $89,000 project to the Capital Budget for Public Art, with $50,000 funded from the public art maintenance reserve
• That a 2024 Tourism Strategic Plan capital budget be established through the transfer of $100,000 from the Municipal Cultural Plan capital budget, which will result in $102,800.86 remaining in the Municipal Cultural Plan capital budget
• That the lifeguard hours at Rogers Cove be eliminated and that the funding of $40,000 be used to reduce the net tax levy requirement
• That the canal rink not be maintained for the 2024-2025 year and that the funding of $100,000 be directed to reduce the net tax levy requirement
• That $20,000 be allocated to the Community Rink Program and that the funding be added to the Net Tax Levy
• That a Library staffing reorganization be implemented and that the savings of $120,000 be returned to the Net Tax Levy
• That the OMPF Grant be amended from $300,000 to $358,800 and that the increase be used to reduce the Net Tax Levy
• That in accordance with Recommendation 1 in the report from the Mayor’s Task Force for Housing creation, a position for a Planning Project Manager be added to the Planning budget at a total cost of $170,017 including benefits and that this position be funded through the anticipated growth in applications for multi-unit developments and their associated fees
• That advertising expenses for Strategic Communications be reduced by $15,000
• That preventative maintenance and custodial costs for facilities be reduced by $153,000 (20%)
• That the Climate Change Coordinator full-time-equivalent position proposed in the budget be eliminated
• That staff prepare a report on strategies on how to generate revenue and fully utilize the parking garages at Simcoe and King streets in addition to surface parking, to accommodate future growth and development and that the DBIA be consulted
• Proposed changes to the City’s parking by-law to implement parking penalty increases
• Establishing five full-time employee positions in the Municipal Law Enforcement Services Division and creating a capital budget for patrol vehicles
• That staff report back by the third quarter of 2025 on a strategy to reduce rates of speed, including the feasibility of 40 kilometres per hour rate city wide

What began as a good day for Su Ditta, executive director of Electric City Culture Council (EC3), turned dark in a hurry on Tuesday (November 19) during Peterborough city council’s deliberations on the city’s draft 2025 budget.

Hours after councillors voted almost unanimously not to reduce funding for 75 community groups and arts organizations by a proposed 25 per cent, they voted by a 8-3 count to completely eliminate any city funding for EC3.

First established as as signature recommendation of the City of Peterborough’s 2012 Municipal Cultural Plan (MCP), EC3 is an independent, arm’s-length, not-for-profit corporation with a mandate to champion the development of the arts and culture community for the people of the city and county of Peterborough.

Some of the organization’s programs and activities include the Bierk Art Bursary Program for graduating high school students, the Peterborough Arts Awards and Mayor’s Luncheon for the Arts, Artsweek, the Poet Laureate program, the Grants for Individual Artists program, and professional development workshops.

With the city’s current funding agreement with EC3 ending in 2024 and with no funds allocated for EC3 in the draft 2025 budget, community services commissioner Sheldon Laidman presented a report to city council on Tuesday that included four options for funding EC3 in 2025.

Councillor Lesley Parnell moved acceptance of the final option in the report, that council “opt not to renew funding to EC3 at this time in anticipation of the completion of a renewed MCP, which would provide further direction for the future of a culture council.”

Along with Parnell, Mayor Jeff Leal and councillors Dave Haacke, Andrew Beamer, Matt Crowley, Don Vassiliadis, Gary Baldwin, and Kevin Duguay voted in favour of the defunding option. Councillors Joy Lachica, Alex Bierk, and Keith Riel voted against it.

The other three options presented in Laidman’s report were:

• That council continue to fund EC3 operations at existing levels under the terms of a new community service agreement using general taxation funds.
• That council opt to partially fund EC3 operations under the terms of a new community service agreement using general taxation funds, with the funding amount to be determined.
• That council opt to partially fund EC3 operations under a one-year term while the new MCP is completed in 2025, with the funding amount to be determined.

While acknowledging council’s decision to go with the defunding option was the worst possible outcome, Ditta says the focus now for EC3 is wholly on changing the minds of some councillors in advance of the final 2025 budget being approved by city council on December 9.

“We will be working with city councillors, the arts community, and other influencers to try and make sure EC3 receives its full $100,000 in operating funding and all the programming money ($77,000) for Artsweek, for grants for individual artists and their portion of the money for the Poet Laureate program,” she says. “We have an opportunity to explain what EC3 can do, what the role of an arms-length arts council is in terms of tourism, and remind them what EC3 achieves with a skeleton budget.”

Noting that EC3’s annual budget is “somewhere between $175,000 and $210,000” depending on the programs being delivered and revenues received from grants and fundraising, Ditta says for every dollar invested in the arts, there’s a $25 return to the economy in spin-offs.

“We also provide professional development opportunities, artist-in-residence opportunities, and mentorship opportunities,” she says. “We provide a lot of advice and counselling. If the United Way, for example, needs help commissioning an artist to do a project, we can provide advice. When Trent University is receiving a glass collection as part of a donation, we can help them figure out how they’re going to do that in a professional way. When the Community Health Centre is looking for artists to work with them, we can find ways for them to connect with artists.”

Ditta adds that, if the city withdraws funding in 2025, EC3 would be unable to continue to carry on these activities or to deliver existing programs supporting the arts and culture community.

“All of those things would be lost, and absolutely every program that we deliver would be lost, such as the Bierk Art Bursary Program, the Peterborough Arts Awards, the Mayor’s Luncheon for the Arts, Artsweek, and the Poet Laureate Program. We also have a number of cultural and racial equity initiatives such as Spotlight on Black Artists, Truth and Reconciliation and National Indigenous Day programming, Pride programming. All of those would be lost.”

Ditta notes that EC3 had a “very positive meeting” last Friday (November 15) with Laidman and Jennifer Jones, the city’s acting director of arts and culture.

“He indicated to us that he hoped council would renew our $100,000 grant,” Ditta recalls of the meeting. “He indicated that before council today (Tuesday) as well, and that he would develop a unique template for a service grant contract that’s in line with, and applicable to, an independent arts council, that looked like what our previous contract did and is in line with the contract that other cities have with their arms-length art councils.”

“He also offered to circulate an update on our programs and activities (to provide) an accurate picture of what we had done and accomplished over the past two years.”

kawarthaNOW has obtained a copy of a detailed response to Laidman’s report that Ditta wrote before Tuesday’s vote, complete with added comments that pointed out what Ditta claimed were inaccuracies and misleading statements in the report. However, Ditta chose not to elaborate further on the alleged inaccuracies and misleading statements, instead looking forward to what needs to be done prior to the final vote on the budget.

“We’ll certainly be working hard with a number of councillors and with a number of arts organizations,” she says, adding “I suspect that the 200 people that have received individual artist grants from us will, I hope, want council to listen to what they have to say.”

“It (Tuesday) was a very big day at council. We’re really thrilled that the 25 per cent cuts to all the community service grant recipients and project grant recipients were overturned. That’s a big accomplishment. The community worked very hard together to make that happen. We hope they will now support EC3 in fighting to receive the funding we need to carry on with the excellent work that we do.”

Asked if she was surprised that council voted to defund EC3 after voting to maintain the funding of the 75 organizations facing a 25 per cent reduction in their 2025 grants, Ditta acknowledges, “It does feel contradictory.”

“One thing we hope the city will recognize is most cities in the province are moving forward with arts councils. They’re not closing them down. They’re investing in them and building them up.”

Although disappointed by council’s decision to do the opposite, Ditta is not dwelling on it because she says “there’s a lot of work to do” before the final vote at December 9th’s city council meeting, when public delegations will also be heard.

“We have confidence that Peterborough is a wise, forward-looking, contemporary city that wants to have an arms-length arts council to fulfill that image,” she says. “I’ve had so many phone calls of support, both personal support and support for EC3. That just makes me realize while it is, on the one hand, the worst of times, it really highlights how fabulous this city is and how the community comes together for things that matter.”

This story has been updated to correct the voting record. The motion to defund EC3 passed 8-3, with councillor Gary Baldwin also voting in favour. The original version of this story stated that he voted against the motion.