Peterborough is facing growing financial pressure when it comes to replacing the vehicles and equipment needed to deliver municipal services.
City council has received a report outlining Peterborough’s fleet replacement reserve strategy and the funding that could be required in the years ahead.
The strategy covers municipal departments other than Peterborough Fire Services and Peterborough Police Service, which manage their fleets separately.
The city uses a rolling 10-year forecast to determine when vehicles and equipment should be replaced, with the goal of maintaining service levels while minimizing long-term costs.
The report estimates the average annual investment required to maintain a municipal fleet is approximately $85 per resident, based on available asset management plans.
Peterborough’s reported investment is about $55 per resident when anticipated grant funding is included. Direct tax- and rate-supported funding amounts to approximately $33 per resident.
Based on the $85 benchmark, the report estimates Peterborough’s annual fleet investment would need to approach $8.5 million based on an estimated 2026 population of 100,461. That could rise to approximately $9.4 million by 2036.
By comparison, the city’s approved 2026 budget includes $2.1 million in reserve contributions for the Public Works fleet and $700,000 for Transit, for a combined $2.8 million. Another $550,000 in grant funding is allocated toward Transit fleet replacement.
City staff say Public Works and Transit are experiencing significant cost pressures, while previous funding models were not designed to account for the increases experienced over the past decade.
The report will help inform discussions surrounding fleet composition and future funding requirements as the city prepares for its 2027 budget deliberations.
