The City of Peterborough’s 2024 draft budget proposes a tax hike of nearly 10 per cent — if the goal is to fulfil all pressing requests from groups such as police.
Media got to preview the budget prior to its presentation to the city’s finance committee beginning at 5:30 p.m. Monday.
In August city council instructed staff to aim for a 4.5 per cent to 5.5 per cent all-inclusive tax increase for the budget.
However, the draft suggests to maintain services and cap groups’ requests, the all-inclusive tax rate would be at 5.5 per cent.
But to fulfil pressing requests would balloon the tax rate to a 9.59 per cent increase — the equivalent of a household paying an additional $167 per $100,000 of residential property assessment — $1,910 in 2024 compared to $1,743 in 2023.
“As we well know, inflation as of late has been over eight per cent post-COVID, and we’re not immune to that,” said Richard Freymond, the city’s finance and corporate support services commissioner. “So it has caught up with us.”
The draft budget includes $359 million in operating expenses, with $173.9 million from property taxes and the remainder funded by other revenues such as grants from other governments, user fees, and service charges. The Draft 2024 Budget includes $128.2 million for 147 projects.
The draft suggests a higher rate of 9.59 per cent which would mean the Peterborough Police Service Board would receive its requested 15.3 per cent budget increase.
For months, police Chief Stuart Betts has lobbied the city for additional funding to address higher policing costs and recruit more staff (five officers and five civilian positions). In September, he hosted a town hall to discuss the financial challenges. He claimed that an 11 per cent budget increase would be just enough to “keep the lights on.”
He said that if the increase isn’t met, some service cuts will be required.
Freymond says it is up to city council to debate whether the 15.3 per cent budget increase is warranted. The police board is proposing a $35-million budget for 2024 — an additional $5.9 million from last year. The increase would be approximately a $79 hike per household.
“It’s really simply a decision of one number — is that appropriate to provide effective policing in the City of Peterborough,” he said. “And council can weigh in yea or nay on that.”
The draft budget also considers requests from Peterborough Public Health and the Peterborough County-City Paramedics for increased budgets. If approved the combined additional costs would be approximately $3.5 million — or 1.83 per cent on the tax rate.
There are also costs included for a new contract with transit workers, who have been locked in contract talks with the city for months. Labour action could happen by Nov. 18.
“The 2024 budget — as proposed here — hopefully, accommodates all the financial impacts as the result of the collective bargaining,” Freymond said.
Freymond noted there are also options to further reduce the tax rate.
Deliberations and public input
The goal is to have the budget adopted by Dec. 11.
A public meeting with a brief presentation on the draft budget followed by an opportunity for residents to speak with city staff will be held on Thursday, Nov. 9 from 6 p.m. to 7:30 p.m. at the McDonnel Street Community Centre at 577 McDonnel St.
There will be an informal drop-in opportunity to speak with city staff and the finance committee chair and vice-chair about the draft budget on Tuesday, Nov. 14 from 4:45 p.m. to 5:45 p.m. in the main foyer of city hall at 500 George St. N.
A formal meeting of city council’s finance committee will be held on Tuesday, Nov. 14, starting at 6 p.m. in council chambers at city hall to hear from registered public delegations on the draft budget.
Visit peterborough.ca/delegations or call 705-742-7777 ext. 1820 to register as a delegation. Registration is open until 11 a.m. on the day of the meeting.
City council will hold a series of finance committee meetings Nov. 20-23 to discuss and debate the draft budget. There are no public delegations during the meetings which are open to the public to attend and can be watched live at peterborough.ca/WatchCouncil.
— with files from Robert Lothian/Global News Peterborough