Peterborough residents could face a preliminary all-inclusive rate increase of 6.62 per cent in 2027 as the city begins the early stages of budget planning.
City council received a preliminary Budget Information Report this week outlining the financial pressures expected to shape the 2027 budget. Staff cautioned that the projected increase remains subject to change as estimates are refined over the coming months.
The draft 2027 budget is expected to be presented to council at a General Committee meeting on Nov. 30.
Among the largest financial pressures identified is a $3-million increase required to address a one-time measure used in the 2026 budget. Council had previously drawn $3 million from the Legacy Fund reserve to help reduce last year’s tax increase, creating a funding gap that must now be incorporated into the base budget.
The report also highlights an estimated $2.43 million in capital financing costs and $2.29 million in personnel-related expenses, including negotiated wage increases and other staffing costs.
Labour negotiations are ongoing with the Amalgamated Transit Union Local 1320 and the International Brotherhood of Electrical Workers Local 636. In addition, agreements with all three Canadian Union of Public Employees locals representing city workers expire at the end of 2026.
Inflation continues to place pressure on municipal finances, with staff projecting approximately $2 million in increased operating costs. In an effort to control spending, departments have been directed to prepare budget submissions using a 1.5 per cent inflation assumption for most non-staffing expenses.
Other notable cost increases include an estimated $1.65 million increase in funding for the Peterborough Police Service, reflecting a projected four per cent budget increase, and nearly $1.56 million in additional fuel costs.
The city noted that the 2027 budget will be designed to maintain existing service levels while accounting for inflationary pressures and other financial obligations. It may also incorporate recommendations from the Effectiveness and Efficiency Review currently underway.
Staff emphasized that the projected 6.62 per cent increase is based on early assumptions and will likely change as more information becomes available and budget deliberations continue through the fall.
Council received the report for information only, with detailed budget discussions expected later this year.
