At its meeting on Monday night (December 11), Peterborough city council approved a 2024 budget that would see a residential property tax hike of seven per cent.
This is less than the 7.38 per cent increase in the draft budget recommended by council’s finance committee on November 21, which was itself a decrease from the 9.59 per cent increase in the original draft budget.
Still, the seven per cent increase is more than twice as much as the 3.15 per cent rate increase in the 2023 budget. It would add $10.17 per month, or $122.02 for the year, to residential taxes for each $100,000 of property assessment. For a home assessed at $600,000, this would be an increase of $732.12 for the year.
During a breakfast meeting with Peterborough mayor Jeff Leal hosted by Peterborough and the Kawarthas Chamber of Commerce on November 21, the mayor called the 2024 budget “a course correction budget to avoid a series of double-digit increases down the road.”
At Monday’s meeting, councillor and finance committee chair Andrew Beamer said the budget will improve maintenance of city roads and infrastructure as well as municipal services, while expressing concern about the size of the tax hike.
“We do need to make key strategic improvements in the community to ensure that we are not falling behind and that we are moving forward,” Beamer said. “This has to be a one-time budget situation. This can’t become the norm. We need to work together for a more manageable budget next year.”
One of the major changes from the original draft budget to reduce the residential tax increase from 9.59 per cent to 7.39 per cent was shifting around $3 million in taxes from residential properties to commercial and industrial properties by increasing the tax ratio for both commercial and industrial property classes from 1.5 to 1.65 — reversing a trend of decreasing the ratios in previous years.
A little over a week after hosting the mayor’s breakfast meeting, the Chamber issued a media release objecting to the decision and urging city council to reconsider.
“It’s disappointing that the finance committee would recommend a significant change in economic policy, a policy that was drafted with thorough consultation with local businesses, to give residents the appearance of a reduced tax increase,” said the Chamber’s president and CEO Sarah Budd. “We routinely hear from our government leaders that there is one taxpayer. Shifting $3 million in tax levy to one group of property owners and calling it savings for another does not give the impression that we are all in this together.”
To further reduce the residential tax hike form 7.38 to seven percent, some of the changes from the finance committee version of the budget include using $1.31 million instead of $800,000 in investment interest generated from the sale of Peterborough Distribution Inc. to Hydro One, increasing transit fares to generate an additional $100,000 in revenue, and deferring $150,000 from the Sherbrooke Street reconstruction class environmental assessment project.
The approved budget also increases grants by 1.5 per cent to certain community organizations including Artspace, Community Care Peterborough, Peterborough Musicfest, Peterborough GreenUP, New Canadians Centre, and more. The original draft budget has proposed reductions of around 3.6 per cent in funding for the organizations.
As part of the 2024 budget, council decided to set aside $226,021 in payments to Peterborough and the Kawarthas Economic Development for physician recruitment. The funds will remain in reserve until council considers a report early in the new year about hiring a physician recruiter.
Council also did not support increasing the budget by $374,686.45 to allow for the purchase of a electric heavy-duty vehicle for wastewater collection to replace an existing diesel truck that is due for replacement. At its general committee meeting on December 4, council had endorsed the increase of $604,644.17 for the vehicle purchase — which would include immediate delivery of the vehicle, two heavy-duty electric vehicle charging stations, staff training, and more — instead of $248,892.46 for a new diesel truck that would be delivered in two to three years.
Peterborough mayor Jeff Leal presented the 2024 budget to council on Monday night under the new Strong Mayor Powers created by the Ontario government. The mayor’s budget incorporated all the changes recommended by council during its deliberations. Under the Strong Mayor Powers, council can amend the proposed budget by passing a resolution within a 30-day review period. The mayor then has 10 days from the end of the council review period to veto any council amendment.








































