Before a gathering of local business leaders early Thursday morning (November 27), Peterborough Mayor Jeff Leal painted a grim picture of the “very challenging financial situation” the city faces.

Speaking at the annual Mayor’s Breakfast at the Peterborough Golf and Country Club, Mayor Leal spoke at length to the proposed 2026 city budget and its related 6.56 per cent all-inclusive tax rate increase.

The event, hosted by Peterborough and Kawarthas Chamber of Commerce, also saw remarks from Peterborough police chief Stuart Betts about the request for an additional $3.7 million for the 2026 police budget, a 9.8 per cent increase over this year.

The mayor noted that the proposed 2026 tax hike, which will go before council for final approval on December 8th, comes at the expense of no new hires or increases in city-provided services.

“This is a status quo budget,” said Mayor Leal, noting 1.76 per cent of the total increase is for externally provided services such as policing, paramedics, and public health whose “service levels and mandates are set by the province with municipalities left paying the bill.”

Spending for capital projects, added Mayor Leal, accounts for 2.16 per cent of the total tax increase.

“The city’s asset management plan recommends we spend close to $250 million a year for the next decade to catch up on our infrastructure backlog so that our assets are in a state of good repair. We are investing about $100 million each and every year.”

“Part of the problem is, for many years, previous councils deferred or delayed key investments. I appreciate and respect their desire to put off that necessary spending for the long-term benefit of the community in return for immediate relief on property taxes but, eventually, someone has to face the consequences of those decisions.”

That “someone” is the current city council, which unanimously decided at its November 18 meeting to reduce the 2026 tax levy requirement by 1.32 per cent by drawing $3 million from the city’s legacy income retention reserve account, which generates investment income using the proceeds of the sale of assets of Peterborough Distribution Inc. to Hydro One.

“This decision to use the interest revenue is a stop-gap measure,” Mayor Leal said during the council meeting. “It certainly gets us through 2026, I appreciate that, but the tough sledding is down the road in 2027 and beyond, when we really need to put the budget under the microscope and once and for all repair the structural problems we have.”

At Thursday morning’s meeting, the mayor said the city will begin the process early next year of securing “a bigger picture solution to the problem” of its budget by “commissioning a comprehensive service effectiveness and efficiency review.”

“We will be asking a third-party organization to look across our entire organization to find out where we can deliver services more efficiently, including through alternative service delivery models. This is the first time a comprehensive review will be undertaken in our city’s history.”

The result, warned Mayor Leal, “won’t be for the faint of heart. There will be some extremely difficult choices to make.”

“For example, to get (down) to a three per cent all-inclusive tax increase, we would need to find more than $8 million in cuts or alternative revenue sources. To put this into sharp focus, we could shutter both library branches, and cease snowplowing and winter control operations, and we’d still need to find more funds (to get to three per cent).”

Mayor Leal said the RFP (request for proposal) for the service delivery review will be issued in January, with that review’s findings made public prior to the October 2026 municipal election.

After his remarks, Mayor Leal told kawarthaNOW that “some serious structural problems” beg solutions for there to be any chance of lower annual tax hikes in the years ahead.

“We’re setting aside a certain amount of money in our 2026 budget which will allow the municipality to bring in a consulting team that will look under the hood at every bolt and nut in the City of Peterborough,” said Mayor Leal. “It’s wise, from time to time, to bring in outsiders to take a fresh look at all our operations.”

Asked if he thinks there actually is $8 million in savings and increased revenue streams to be found, Mayor Leal said “It is there, but only if there’s the political courage (by incoming city councillors) to look at the recommendations and implement them.”

During his remarks, Mayor Leal also touched on a familiar theme — one he brought up one year ago at this same breakfast event.

“Residential taxpayers in our city pay 80 per cent of our tax base while commercial-industrial represents 20 per cent. In a lot of communities in Ontario, a much healthier split is 60-40 (per cent). Although there are many companies looking to move to Peterborough, and many already here hoping to expand, we simply don’t have the employment lands to accommodate most requests.”

“Unlocking employment lands would, along with creating jobs for residents, go a long way to bringing in property tax revenue and improving our tax ratio, taking some of the burden off our residential tax base.”

After telling his audience to brace for the tough decisions that will precede the achieving of lower overall tax rate increases down the road, Mayor Leal pushed the need for a new “spectator centre” to replace the aging Memorial Centre.

“As it continues to age, we will be forced to keep putting millions of dollars into its upkeep (with) forever diminishing returns and, all the while, the cost of a new facility will continue to climb,” he said.

“We’ve invited the private sector to demonstrate its interest in this project, and share their ideas for investment and revitalization on the broader district around the proposed site (the current Peterborough Transit bus garage at Aylmer and Townsend streets). The request is open now and will close on January 13th.”

Mayor Leal added a report from staff will follow in the spring “which will provide the opportunity to commit to the project.”

“Some 50 years ago, we had the development of Peterborough Square, which was the major investment in our downtown at the time. I believe it’s time for the next major downtown revitalization and property tax assessment uplift program. We’re looking for a partner in the private sector and will be asking the upper levels of government for support.”

A new facility, added Mayor Leal, will require “a significant investment” on the city’s part.

Asked afterwards how he can justify that expenditure in the face of possible forthcoming cuts to city services needed to lower the tax hit, Mayor Leal pointed to the experience of St. Catharines.

“When they opened the new Meridian Centre in 2014, there was a general uplift of assessment in that area where the Meridian Centre was constructed,” he said.

“Fifty years after Peterborough Square (was built and opened), we need a big project to revitalize downtown Peterborough. In 1956, the City of Peterborough invested in the Memorial Centre. It lasted 70 years. This is a generational long-term project.”

During his remarks, police chief Stuart Betts touched on various aspects of, and challenges associated with, policing as a necessary service which, in 2026, will cost $41.5 million — a 9.8 per cent increase over this year.

Like Mayor Leal, he noted there’s little to no wiggle room in terms of finding savings due to the cost of provincially mandated programs and services.

“When we come to city council, it isn’t that we’ve just spent the last couple of weeks working on this (the police budget),” said Chief Betts.

“We’ve spent most of the year looking at what are we doing, what can we do better. What can we do less costly? How can we bundle services much like you would do in your homes or businesses? What can we do to reduce the cost over and above negotiated wages and salaries and service increases?”

Of note, Chief Betts drew the loudest reaction from those gathered during the post-remarks question-and-answer session moderated by chamber board vice chair Ben vanVeen of Century 21 United Realty Inc.

“I have zero tolerance for people who choose to do drugs in our public places,” Chief Betts said when asked what approaches police are taking when it comes curbing public drug use.

“I’m not unaware of the fact that when you have an addiction, what your behaviors are often are going to be subject to that chaotic substance abuse cycle. I get that. That doesn’t mean it’s an excuse for poor behavior.”

“Since June 6th, we have arrested 156 people out of 500 calls for service and laid charges in 110 occurrences, in which we’ve dealt with people who are using drugs in our public spaces. There will always be more work than we can possibly keep up with but the message needs to go out, it won’t be tolerated.”

Among those in room to hear Mayor Leal’s and Chief Betts’ remarks were Peterborough city councillor Joy Lachica and Douro-Dummer mayor Heather Watson.

The breakfast was sponsored by Enbridge, the City of Peterborough, MNP, Black Rock Entertainment, Pinchin Limited, and Shorelines Casino.

The Peterborough Downtown Business Improvement Area (DBIA) has responded with a “strong warning” about a proposed by-law drafted by the City of Peterborough that would enable the city to claw back its $150,000 annual payment to the DBIA.

The city’s $150,000 in annual funding to the DBIA was the result of a 2017 settlement between the DBIA and the city, after the DBIA and property rental company AON inc. agreed to drop their appeals to the Ontario Municipal Board of the city’s decision to allow a casino at 1400 Crawford Drive instead of in the downtown core.

Under the settlement, the city agreed to pay the DBIA $150,000 annually for 20 years — funding that the DBIA has been using for events, promotion, and security — for a total of $3 million.

The proposed by-law (By-Law Number 25-126), which will be considered during a city council meeting on Monday (December 1), uses a section of the Municipal Act that allows a municipality to pass a by-law to assume a power or duty of local board. By considering the DBIA board’s ability to receive the city’s payment as a “power” or “duty” of the board, the city will assume that power, essentially allowing the city to become the recipient of its own payments instead of the DBIA.

On Friday (November 28), the DBIA issued a strongly worded media release about the proposed bylaw, warning that it “would shift authority over funds that have long supported downtown stability, revitalization, safety, and economic activity — potentially weakening the DBIA’s ability to deliver services at a time when downtown businesses are already facing unprecedented pressures.”

Noting it was not consulted on the development of the by-law, DBIA executive director Nour Mazloum is “raising urgent questions about how this change would affect the organization’s ability to carry out its mandate during an already challenging economic period.”

“Downtown businesses have been navigating higher operating costs, increased taxes, tariffs, and the lingering impacts of COVID-19,” Mazloum states in the release. “This is precisely the time when they need more support, not less.”

“We have been transparent, responsible, and accountable with every dollar we manage. That’s why this by-law is so concerning — it breaks trust. If the city can change direction without discussion on something this important, what will they do next? Trust requires year over year consistency. Right now, that’s what’s at risk.”

Mazloum added that, while the DBIA is committed to maintaining its “long-standing, collaborative working relationship” with city staff, “major financial or governance changes require proper consultation.”

“You can’t pass a by-law without considering the consequences — this one has them,” says DBIA board chair Sacha Lai-Svirk in the release.

“A by-law like this sends a message about the city’s commitment (or lack of commitment) to stability, predictability, and partnership. After the progress we’ve made together, introducing doubt right now is strategically harmful. It risks undoing years of work to rebuild confidence with the city.”

While noting the DBIA “is not opposed to tough conversations,” Lai-Svirk added “decisions of this magnitude must be informed, transparent, and collaborative.”

“I’ve run a small business downtown for 20 years,” Lai-Svirk said. “I know exactly what uncertainty does to a business. The last thing our businesses need is confusion about the city’s support.”

Lai-Svirk also reacted to an unattributed comment from city staff that a Peterborough resident posted on social media, which indicates the proposed by-law will not change the settlement agreement.

“If this by-law doesn’t change anything, then passing it is unnecessary,” she said. “And if it does change something, the city needs to explain exactly what — and why.”

Lai-Svirk noted the settlement agreement with the city provided the DBIA with $150,000 in stable funding each year until 2037, and the city assuming responsibility for the administration of the funds “creates the possibility of future reductions or redirection.”

In the release, the DBIA provided a list of risks that will result if the city passes the proposed by-law without consulting with the DBIA:

• undermining downtown stability during a volatile economic period
• creating uncertainty for over 400 businesses that rely on DBIA support
• damaging trust between the city and downtown stakeholders
• sending a negative signal to investors, developers, and new businesses
• interrupting momentum at a time when the downtown has finally turned a corner
• jeopardizing future collaborative initiatives, including a permanent lighting strategy, downtown boundary expansion, high-speed rail (Alto) integration, event centre activation, and new streetscape, placemaking, and safety programs

The DBIA is calling on city council to vote against the by-law, conducted a full legal and strategic review, engage with the DBIA, AON Inc., and downtown stakeholders, and reassess the by-law in the context of downtown’s economic recovery.

In the release, Lai-Svirk says that DBIA and AON Inc. may take further action if the by-law proceeds.

“We are prepared to defend the future of downtown businesses,” Lai-Svirk said. “If council chooses to move forward without consultation, AON Inc. and the DBIA are prepared to take every appropriate step to protect downtown businesses and the commitments made to this community. But our hope is to resolve this collaboratively. We want decisions that strengthen our momentum, not undermine it.”

After kawarthaNOW reached out to the City of Peterborough asking about the rationale for the by-law and how the by-law would affect the DBIA’s budget, the city’s director of strategic communications Brendan Wedley provided a response that addressed the budget question but not the rationale for the by-law.

“There would be no impact on the DBIA’s commitments for funding programming in 2026 for purposes as per the settlement agreement,” an email from Wedley states.

“The settlement agreement remains in place. The City would take on the obligation of using the settlement payment for security purposes and for promotion of the Central Area as stipulated in the settlement agreement. For 2026, the City would review the DBIA’s intended uses of the settlement funding with the intention to maintain the funding for its commitments for security and promotion of the Central Area.”

“For looking beyond 2026, the City would continue to work with the DBIA on its mandate for promotion and beautification of the downtown with the City using the settlement agreement funding for security and promotion of the Central Area, as per the terms of the agreement.”

Councillors will vote on the proposed by-law during the December 1 city council meeting, which begins at 5 p.m. and will be livestreamed on the city’s website. The by-law is one of only two agenda items.

Registered delegations will be heard during the meeting.

The original version of this story has been updated to include a response from the City of Peterborough.

Peterborough police are warning residents who own high-end Toyota vehicles to be extra vigilant following a rash of thefts and attempted thefts over the past 48 hours.

According to police, thieves have stolen three vehicles and have attempted to steal three more vehicles from several different locations, mainly in the west and south end of the city.

Five of the vehicles were Toyota Tundra pickup trucks (model years 2022 and 2024) and two were Lexus vehicles, Toyota’s luxury brand, including a 2025 Lexus.

Six of the thefts and attempted thefts took place in the early morning hours of Thursday (November 27) around 4 to 4:30 a.m., with an additional theft taking place early Friday morning when a Lexus was taken from the driveway of a west-end home between 2:30 and 3 a.m. In two of the thefts, tracking devices were ripped from the vehicles and found in other neighbourhoods.

Police say there was a series of similar thefts in the spring of 2025, and thieves are continue to target Toyota vehicles — mainly trucks and larger luxury SUVs.

According to a report from the Équité Association last week, the top 10 vehicles targeted by thieves in 2024 were the Toyota RAV4 (2,080 thefts), Dodge Ram 1500 Series (2,018 thefts), Honda CR-V (1,911 thefts), Ford F150 Series (1,833 thefts), Honda Civic (1,797 thefts), Jeep Wrangler (1,491 thefts), Chevrolet/GMC Silverado/Sierra 1500 Series (1,192 thefts), Toyota Highlander (1,141 thefts), Toyota Tundra (1,129 thefts), and Lexus RX Series (1,124 thefts).

The report found 2020 or newer models were the most targeted across most of those vehicle types, with criminals exploiting modern keyless security vulnerabilities to get higher resale values.

Police are advising owners of these vehicles to be extra vigilant and to consider taking precautions, such as parking another vehicle in front it or parking the vehicle inside a locked garage to make it difficult for thieves to drive off, and using a theft-deterrent device such steering wheel locks. If the vehicle comes with a tracking system, make sure it is installed and activated.

Residents who notice any suspicious activity in their neighbourhood should report it to Peterborough police by calling 705-876-1122 x225. If a crime is in progress, call 9-1-1.

VIDEO: Peterborough vehicle theft – November 28, 2025