A Peterborough councillor proposed deferring six infrastructure projects to free up $16 million for housing and homelessness, sparking debate among council members. Some funds for the projects came from other levels of government and could not be easily reallocated. The city, like many others in Ontario, is grappling with a housing crisis as the cost of owning and renting homes continues to rise. The council was discussing the 2025 budget, considering a cap on property tax increases when the proposal was made.
The housing crisis in Peterborough sheds light on the limited resources available to municipalities to address homelessness. Even smaller cities like Peterborough are struggling with a lack of affordable housing options. The issue has been brewing for years, with the federal government neglecting social housing construction for decades and now facing the repercussions. Municipalities have been burdened with more responsibilities, including housing, without adequate revenue-raising tools. The property tax is the primary source of income for municipalities, but it falls short of covering all infrastructure and social service needs.
The absence of additional revenue tools and a reduction in development charges by the Ford government have further constrained municipalities in addressing the housing crisis. While projects like pickleball courts and airport maintenance are essential for community wellbeing, funds are needed to tackle urgent housing issues. Municipalities are facing difficult trade-offs and cannot neglect important services to prioritize housing. Calls for senior levels of government to provide additional resources and support to address the housing crisis at the municipal level are growing louder.
Building new housing and investing in the housing sector require substantial financial resources, which municipalities struggle to generate without access to income tax revenue. The lack of financial resources has forced municipalities like Peterborough to think creatively about addressing the housing crisis. Without additional support from provincial and federal governments, municipalities are left to find their own solutions to the ongoing housing crisis. The need for a coordinated approach and more assistance from the upper levels of government to address homelessness and housing issues is becoming increasingly urgent.
