Service cuts, fee hikes in new report

KPMG analysis points to where city council could find savings

City council may soon consider shutting off the Centennial Fountain in Little Lake for good, shrinking the city’s budget for parades or cutting back on discretionary benefits for social assistance recipients as new ways to save money.

A new report from the accounting firm KPMG analyzes city expenses and points out areas where council could save through service cuts or fee hikes.

Councillors will receive the report at a committee meeting on Monday, but won’t be expected to make any decisions: that will happen during 2021 budget talks in November.

Although the 2021 draft budget hasn’t been made public yet, the KPMG report lets slip that it proposes user fee hikes in areas such as parking, transit, planning and garbage (with no further detail offered).

KPMG did a comparison and found Peterborough’s spending and service levels are comparable to those of eight other similar-sized Ontario cities (Guelph, Kingston, Barrie, Thunder Bay, Chatham-Kent, Brantford, Kawartha Lakes and Sault Ste. Marie.) Since Peterborough’s operating expenses are generally in line with those of the eight comparable cities, the report states that saving money for local taxpayers “will likely require service level reductions.”

Here’s a rundown of some of the key areas where KPMG sees potential savings:

Centennial Fountain in Little Lake: While the fountain was turned off for the season as a money-saver in the COVID-19 pandemic, an earlier plan from city council to turn it off — or at least reduce its operating hours — was unpopular with the public.

But the KPMG report revisits the question since the fountain costs $108,000 a year in tax money to operate. To save money, council could consider: Turning the fountain off for good; running it only in July and August (instead of the customary May-to-October schedule); running it 12 hours daily rather than the customary 14 hours daily; running it fewer days a week (Thursday to Sunday, for example, rather than seven days a week); getting corporate sponsors to pay for fountain operations, rather than running it on tax money.

Potential annual saving: Up to $108,000

Discretionary Benefits: The city tops up discretionary benefits for social assistance recipients at a rate of $15 per case as opposed to the provincewide standard of $10 per case.

In Peterborough those benefits help cover items such as dentures, hearing aids and subsidized transit passes for adults.

The report states that the city council ought to consider cutting back those benefits to the Ontario standard of $10 per case.

Potential annual saving: Up to $703,000

＞ Parades and Processions:

The 2020 budget had $36,000 set aside for parades and processions, and the report suggests council consider either eliminating or reducing that spending.

Potential annual saving: Up to $36,000

＞ Low-income Family Support: The city now offers several programs for children and for low-income families that are also available through other agencies such the public health unit, for example, or through discretionary benefits for social

assistance recipients.

Council may consider reducing or eliminating these programs, the report suggests.

Potential annual saving: Up to $118,000

＞ Community Grants: City council might want to revise the way it offers grants for neighbourhood associations, community groups and agencies, the report suggests.

Those grant programs include Community project grants — up to $1,000 per project (past recipients include the Peterborough Pet Food Banks, for instance); Community Investments grants — up to $15,000 annually for up to three years (for non-profits such as Peterborough Symphony Orchestra); Service grants — ongoing funding for special events (for Musicfest and Peterborough Folk Festival, for example).

The city might want to make changes such as requiring periodic reapplications so some organizations don’t continue to receive funding if their circumstances change and they are no longer in need; setting up new eligibility criteria for grants; reviewing the distribution of the funding by sector (to ensure there’s a balance between funding for arts, culture, sports and environmental organizations, for example).

Potential saving: not determined

＞ Peterborough Airport: Although Peterborough Airport is owned by the city, it is in Cavan Monaghan Township. That means the township will collect about $500,000 in taxes this year, states the report, while the city’s on the hook for the full operating costs ($1.1 million annually) plus debt servicing ($1.2 million annually).

The airport serves the whole region, states the report — not just the city — so KPMG suggests city council negotiate a cost-sharing arrangement with the township.

Potential saving: not determined

＞ Peterborough Marina:

While the city charges enough in marina user fees to cover operating costs, it’s not enough to cover construction costs there — meaning that capital projects at the maria are being covered by general tax money.

The report suggests city council might want to consider increasing marina user fees so construction projects at the marina are covered by users.

Potential saving: not determined