Peterborough city council is now fully behind the idea of slashing development charges in the city by 50 per cent in a bid to get a share of $8.8 billion in federal and provincial funding intended to increase housing by making it more affordable.

At its regular meeting on Monday night (June 15), with councillor Don Vassiliadis absent, council voted unanimously 10-0 to support the motion introduced by Mayor Jeff Leal at general committee the previous Monday, with three amendments subsequently brought forward by councillor Matt Crowley.

Councillors voted in favour of the motion despite the risk that the city will lose half of its existing development charge revenue over the next three years if the city’s application to the Ontario government’s new Development Charge Reduction Program (DCRP) is not approved.

City must apply to new Ontario government program by June 19

The mayor’s original motion proposed that the city apply to the DCRP, which the province announced on June 1 following the Canada-Ontario Partnership to Build agreement signed in March that includes $8.8 billion in federal and provincial funding over 10 years for Ontario municipalities that reduce and maintain low development charges, as well as a harmonized sales tax (HST) rebate.

With the intent of reducing the cost of new homes, the DCRP would provide Ontario municipalities with funding if they commit to reducing development charges by 30 to 50 per cent or greater for all residential types and maintain the reductions for at least three years.

Municipalities levy charges against new development as a primary source of funding for growth-related capital expenditures, with the City of Peterborough bringing in $6.5 million in revenue from development charges in 2025. Of the 444 municipalities in Ontario, those that currently levy development charges — over 200 urban municipalities — would be eligible to apply to DCRP, with the deadline to apply set for Friday (June 19).

After Mayor Leal introduced his motion at the general committee meeting under “other business,” some councillors expressed concerns about the process and the timing of the motion, along with questions about the implications of halving development charges for three years should the city not receive DCRP funding.

Councillor Joy Lachica’s motion to defer failed by a 3-7 vote, and the mayor’s motion passed 8-2 with councillors Lachica and Alex Bierk voting against it. Councillor Matt Crowley was absent from the meeting.

Amendments to original motion will see staff report back to council

At Monday night’s council meeting, councillor Crowley introduced three amendments to the mayor’s original motion: having city staff come back to council after submitting the city’s DCRP application with a report on selected projects and why they were selected, having any amended by-laws come to council for approval, and having staff report back to council no later than the end of September with an update on the status of the city’s DCRP application and the implementation of the reduction in development charges.

During debate on the third amendment, councillor Bierk asked finance and corporate commissioner Richard Freymond whether the city had the option of reverting back to the previous development charge rate should the report back to council indicate the city’s DCRP application was unsuccessful.

“There is no off-ramp here,” Freymond replied. “If council reduces the rates, the rates will stay in the reduced 50 per cent rate for three years.”

Freymond noted the city should know by August whether it will receive DCRP funding or not but, in either case, the reduced development charges would still remain in effect for three years.

“There is a risk here, if council determines to reduce the rates,” he added.

After councillor Bierk asked what would prevent council from reconsidering its decision to reduce development charges should it not receive DCRP, Freymond reiterated that the city, by applying to DCRP, would be making a commitment to the province to reduce development charges for three years.

“If council elects to put the rates back up, then say goodbye to any senior level federal-provincial funding for the next three years,” Freymond warned. “Council can either elect to incentivize development as is being encouraged by the provincial government and follow that directive, or we can sit on the sidelines.”

New development could offset $7.5 million revenue shortfall if province does not approve city application

Councillor Bierk expressed concerns that, should the city not receive DCRP funding, it would have a $7.5 million shortfall for infrastructure as a result of the 50 per cent reduction in development charges.

“Does that just mean we do less capital, less infrastructure, or do we dip into the residential tax base to make up that $7.5 (million)?,” Bierk asked Freymond.

“It could mean all of the above,” Freymond said. “Those will be choices that council can make, in terms of whether they want to continue to move projects forward in the absence of senior (government) levels of funding.”

Freymond then pointed out that the $7.5 million shortfall is a staff estimate based on historical revenues received from past development charges, and does not include any revenue that may result over the next three years from additional residential development incentivized by reducing the development charge rate by 50 per cent. Those additional revenues, he said, could offset some of the shortfall.

In his remarks, councillor Gary Baldwin said incentives are needed as existing development charges are not resulting in more housing, and that he “can’t imagine” the provincial government would encourage municipalities to reduce their development charges and then not provide any funding.

“I’m prepared to roll the dice,” he said.

For her part, councillor Lesley Parnell said the city is not getting any development charge revenue anyway due to the lack of shovel-ready projects, and that reduced development charges will lower the cost of housing for young families and first-time home buyers.

After some further discussion, council voted unanimously 10-0 in favour of councillor Crowley’s amendment for staff to report back to council by September 30, voting the same way for the two other amendments.

‘We’re making the right decision to be of one voice in this’

Council then briefly debated the mayor’s amended motion, with councillor Kevin Duguay noting he recently attended a meeting of the Economic Developers Council of Ontario in Windsor and that “all the city officials that I spoke to, all of their communities are actively pursuing this program.” He added that senior levels of government are watching how municipalities are responding to the DCRP.

“It would be inappropriate for us to suggest that we would participate in this program only if the federal-provincial funding is provided — we will not be successful in our application,” Duguay said, adding that new housing as a result of reduced development charges will also create new assessment, increase employment, and help the city meet its housing targets.

“This is a bold decision, but it is a necessary decision,” Duguay said.

Councillor Bierk, who earlier had thanked councillor Crowley for his work bringing forward the amendments, also thanked Mayor Leal for his original motion and councillors Parnell and Duguay for their comments.

“It’s helped me understand what we’re doing here a little bit better,” he said. “I voted against it last week because I still had some questions, and even our treasurer said it was a risk. So my questions came from that standpoint, but I do believe it’s important for us to have unity on this.”

Bierk said it has been difficult for him to “let go” of all the discussions and debate involved in council’s previous decision to raise development charges and, although there is some risk in proceeding, said he would support the motion.

Councillor Andrew Beamer spoke in favour of the motion, saying it would spur economic growth and increase affordability for first-time home buyers.

“I’m glad it’s going to be unanimous, unlike last week,” Beamer said of the pending vote.

Councillor Lachica, who voted against the motion in general committee, said she felt “confident and comfortable that we’re making the right decision to be of one voice in this.”

In his comments, Mayor Leal referred to a policy report by economist Dr. Mike Moffatt called A Blueprint to Restore Homeownership for Young Canadians that found that development charges are the number one factor driving the cost of housing, and an analysis by the Canada Mortgage And Housing Corporation that concluded a reduction of 20 to 25 per cent would spur the development of new homes.

“Last Tuesday morning, we got a call from (Peterborough property manager and developer) AON, Brad Smith,” the mayor said. “He’s going to accelerate 400 units in our community because of what we did last Monday night and (will) reaffirm this Monday night. This program will work, it will get housing for people, and it’ll make Peterborough a much better place to live, work, and play.”

Council then voted 10-0 unanimously in favour of the amended motion.

Thousands of community, health, and social services workers represented by OPSEU/SEFPO are entering the fourth week of their province-wide strike, as the union continues to demand retroactive funding from the Ontario government for community and social service agencies.

“We’ve been trying to do everything we can to stay off strike, but the government wasn’t taking us seriously,” said Jessica Bushey, president of OPSEU/SEFPO Local 358, which represents more than 300 full-time and part-time developmental service workers employed by Community Living Trent Highlands (CLTH) in Peterborough, Kawartha Lakes, and Haliburton County.

On Friday (June 12), Bushey spoke to kawarthaNOW from the picket line outside the CTLH’s Peterborough office at 223 Aylmer Street North, surrounded by a large crowd of loud supporters and clear support from passing cars.

Local developmental services workers are part of province-wide strike

CLTH provides services to people with intellectual disability as a primary diagnosis, including child and youth services, housing support, and day programs. The Trent Highlands agency is one of 125 Community Living organizations in Ontario, with each primarily funded by the Ministry of Children, Community and Social Services.

In November 2019, the Ford government passed Bill 123, which imposed a one per cent limit on pay increases for public sector workers between 2020 and 2023. Public sector workers, labour activists, and community members from all walks of life have spoken out against this bill since its inception.

“These guys work so hard — they care for people that need their assistance all the time — and it’s just unfair the way this government and the employer has been treating them,” said Betty Cree, president of OPSEU Provincial Retired Members Division, as she joined CLTH staff on the picket line.

In November 2022, Bill 124 was repealed following a ruling from the Ontario Superior Court of Justice that it was unconstitutional. This ruling was upheld by the Court of Appeal for Ontario in February 2024.

Following union-led bargaining across public service sectors, the Ontario government provided some retroactive funding was to offset the impact of Bill 124. However, to date, the government has provided no retroactive funding to organizations and professionals in the community and social service sectors.

Bushey said the current strike is a direct response to the lack of funding received by these sectors.

“This is how we’ve had to apply pressure so that they negotiate with us and give us back what was stolen,” said Bushey.

Union campaign seeks retroactive wage increases and stable future funding

Local 358 is part of OPSEU’s provincial-wide “Worth Fighting For” campaign, joining 26 other OPSEU local units on strike representing over 4,000 public service workers.

In addition to developmental service workers, the campaign also represents those working in public service sectors including child and youth services, shelters, and mental health and addictions.

“We’re part of a huge historic labour movement. We couldn’t do this on our own,” Bushey said of the importance of joining other OPSEU local units in strike action.

On it Worth Fighting For campaign website, OPSEU states that its has two primary goals in this initiative, the first being “justice for stolen wages” in reference to the reduced compensation increases due to the one per cent cap. In particular, OPSEU is seeking alignment with compensation provided to other public service sectors.

Bushey told kawarthaNOW about impacts experienced by developmental services workers due to Bill 124 legislation, saying that many union members — including those at the top of the pay scale — are forced to work multiple jobs, including non-professional roles outside of the sector.

“We have (union) members who are working multiple jobs, having to go to the food bank, or having to move back home with their parents because our wages haven’t kept up,” said Bushey.

Further to this, Bushey said it is significant that the employee demographic in sectors and organizations that did not receive retroactive pay increases is overwhelming made up of women and immigrants.

“I don’t think it should be overlooked that the workers are new Canadians and women,” Bushey said. “I think that it’s purposeful.”

Bushey added that gender inequity is clear in the funding distribution following Bill 124, noting that sectors such as probation and parole and the liquor control board (LCBO) were provided with retroactive funding.

“I don’t think that’s a mistake by the Ontario government,” Bushey said. “They paid their own workers (first).”

The second goal OPSEU outlines on its website is “funding for the future of our services,” identifying the need for an increase in core funding to prevent cuts to jobs and services as well as to protect the continuity of care for service users.

Bushey said that inadequate funding for community and social services programs has direct impacts on clients and outcomes. New research from the Canadian Centre for Policy Alternatives showed that funding for the Ministry of Children, Community and Social Services has dropped 2.4 per cent over the past year.

“The people we support might have a budget of $14 a day for food. That’s preposterous,” said Bushey.

Union is concerned about privatization of developmental services

Another concern Bushey expressed was about the increased privatization of public services in Ontario, saying it could leading to potential worse outcomes for clients through lack of oversight and standardisation.

For Bushey, people with disabilities and their caregivers are currently being forced to choose between affordability and quality of care. She said further that for many people they have spent many years with little to no support and this leads them to choosing low-cost private options.

“But if I’m that desperate, why wouldn’t I go private?” Bushey asks.

In 2021, the Ontario government released Journey to Belonging: Choice and Inclusion, its long-term reform plan for developmental services in the province. Critics have argued that the plan’s shift from a direct non-profit model to an individualized funding model, where individuals and families manage their own funding, favours the for-profit sector.

Although private care options are often less costly, Bushey said, there may be fewer regulations for the provider and the care given. She noted that staff members at CLTH and similar organizations are trained or registered professionals typically with extensive education.

“Journey To Belonging sounds like this lovely person-centred thing, but it’s privatization of our public services at the end of the day,” said Bushey.

Community Living Trent Highlands asks union local to resume contract negotiations

With respect to OPSEU’s job action, CLTH released a statement on Thursday (June 11) that its management team was inviting Local 358 to the bargaining table.

“While we certainly are aware of the union’s province-wide efforts to seek a retroactive increase from the provincial government, we’re committed to supporting and further strengthening our relationship with Local 358 and their members in Peterborough, Kawartha Lakes and Haliburton,” said CLTH executive director Teresa Jordan.

“Yesterday I reached out to the union’s local leadership and asked them back to the table to finish negotiating a mutually agreeable contract at the local level … I asked the union to meet us because we believe this is the best way to settle this strike and get people back to work.”

But for Bushey, the strike is about more than the contract signed at CLTH. Without an agreement from the province to provide retroactive and stable future funding, she said, CLTH does not have the capacity to meet the needs or demands of union members.

“We are willing to talk to the employer. However, they haven’t received funding for Bill 124. They don’t have what we need,” she said.

Bushey added that CLTH has chosen not to make a statement in support of OPSEU’s demands of the province. She considers this a barrier to Local 358 reaching an agreement, as the union’s demands are reliant upon retroactive Bill 124 funding.

“They’re not willing to help us get the funding,” said Bushey. “We’re not really sure why they’re perpetuating this, as if we’re ignoring them, when they know what our fight is about.”

Rhonda Gilchrist is the new executive director of The Mount Community Centre, a non-profit charitable organization providing affordable housing and working to support food security, effective Monday (June 15).

Gilchrist is joining The Mount from the United Way of Peterborough and District, where she has worked for almost nine years as senior director of operations and revenue generation.

“Rhonda joins the organization at an exciting time,” said Stephen Kylie, chair of The Mount’s board of directors, in a media release. “We have ambitious mission and fundraising goals and she will be responsible for advancing (The Mount’s) mandate and to operationalize the core functions and achieve the overall objectives of our organization to bring it to the next level.”

Gilchrist replaces previous executive director Arshed Bhatti, who was hired in January 2024. After Bhatti’s departure last October, the board launched a search for a new executive director using the firm Crawford Connect. Interviewing four potential candidates from almost 100 applications, the board unanimously approved a recommendation to hire Gilchrist on April 27.

“We are confident that Rhonda possesses the combination of experience and specialized skills in non-profit housing, government funding, knowledge of the community, and vision that will help our organization reach new heights,” Kylie said.

Gilchrist has over 13 years of experience in the non-profit sector, including over eight years in a senior management role. At the United Way, she was responsible for all financial operations, annual and monthly financial statements, monitored project milestones, and led the successful roll-out and maintenance of the organizational database. She has also been activity involved in volunteer activities with Peterborough Action for Tiny Homes.

“The opportunity at (The Mount) is a very rare opportunity and their mission to reduce poverty and develop community aligns with my hopes for our community, Gilchrist said. “With the recent purchase of the Village on Argyle property and the proposed new build on Monaghan Road, I look forward to the exciting responsibility of expanding services to help make lasting positive changes in the lives of our low income community members and the impact it will make in our community.”

The Mount Community Centre at 1545 Monaghan Road, originally called The Mount St. Joseph, began as a motherhouse for the Peterborough Sisters of St. Joseph in early 1895. In 2013, the Peterborough Poverty Reduction Network purchased the property with the goal of renovating it for affordable housing, transferring ownership to a newly incorporated not-for-profit corporation and renaming the property The Mount Community Centre.

The first 43 affordable apartments opened in the fall of 2016, with 36 more apartments built since then. The Mount is also home to several non-residential tenants, a state-of-the-art food centre, and assembly rooms for community use. Last December, The Mount took ownership of a six-acre property at 780 Argyle Street known as the Village on Argyle, which it plants to develop into a community hub for affordable housing and non-profit health and social services agencies.