Last week, your local Chamber of Commerce brought together our local business and political leaders, Mayor Jeff Leal and Jasbir Raina, the Chief Administrative officer (CAO). This was the second annual Mayor's Breakfast, with a packed house at the Peterborough Golf and Country Club. This meeting covered important municipal matters, from increasing development charges and tax rates to physician recruitment and MAT tax.

With this meeting expected to be heated, Leal and Raina dove into the reasoning behind the proposed budget cuts. As you may know, last week, the city council proposed to cut funding by 25% for various community organizations rather than raising our tax rates. A week later, council rejected most of the proposed budget cuts. Leal brought up how instead of applying budget cuts, he asked the "big three” to reassess their budget asks. These organizations were the Police Services Board, Peterborough County-City Paramedics, and Peterborough Public Health. Rather than raising our tax rates, Leal wants to make this budget work by asking the three organizations to reassess their funding requests.
Raina referred to his experience in Mississauga, where he learned the ropes of accurate municipal budgeting. He reasoned that a municipality must operate with a large tax base. Raina mentioned that "municipalities cannot function and expect to grow with smaller tax bases, specifically Band-Aid budgets."  Raina pointed to the many completed roads and ongoing projects adequately funded through tax increases.

Leal also touched on cross-border servicing and physician recruitment. With little industrial land left in Peterborough, this is a big concern if we seek to grow our industrial sector locally. Leal went over how the city has proposed to work with other municipalities in cross-border servicing, where industrial lands would be co-managed. This would benefit the city and the neighboring municipality and bring more businesses and employment to our area. On a physician recruitment note, Peterborough currently has 32,000 people without a doctor, which is a complex situation. Leal touched on this complexity in the city's plan to help bring in more family physicians. The "Bring Them Home" campaign would seek to bring back overseas Peterborian medical students in Ireland to practice at home in Peterborough.

The next elephant in the room was the proposal to increase development charges. One audience member asked how the city expects to spur development with these high increases. Raina responded to this comment, saying, "Every house added to the city is putting pressure on the community, and in accommodating this growth, the community must bear the costs." Although this makes it seem that development charges are necessary to accommodate growth, many developers are still concerned with this cost increase as it will make it more expensive to build and will pass on to the consumer, as one audience member pointed out. On a side note, the Chamber will address the proposed high increases in development charges with our local Peterborough and Kawarthas Home Builders Association.

The next hot topic was our Municipal Accommodation Tax (MAT), implemented in 2019, in which 50% of its revenue will fund a new city-managed tourism entity. An audience member asked about the city's plan for this. Raina highlighted that the MAT tax would strictly reinvest in tourism development, and the work to establish the city's tourism entity is still a novel proposal and a work in progress. Raina also mentioned the progress in the MAT tax funding projects, such as the new arena, and how this MAT tax can continue to rejuvenate downtown.
Moving on to successful city initiatives, Leal showcased the recent success of the city's green waste initiative. Members of the audience were pleased to hear about creating a plan to expand green waste to businesses. This green waste initiative helped the city see great benefits in reducing landfill use and extending its life. Leal also mentioned that the plan to provide green waste management services could occur in the next calendar year.
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This Q&A was jam-packed with sensitive but necessary discussions regarding taxpayer increases and operating challenges. This was a great opportunity for businesses to voice their concerns and have our public servants and mayor hear them. Having this dialogue in uncertain times amidst proposed tax increases is refreshing to see. This Q&A provided much-needed insight into the city's rationale for the following calendar year. This breakfast closed off with remarks from Leal and Raina expressing that to build Peterborough, it will take a unified approach. While true, this unified approach should not come at the expense of our local businesses. We hope our city can hear these concerns addressed at our Mayor's Breakfast and that next year's proposed plans reflect the feedback they received.

One of the many objectives of the Chamber is to advocate for our members. Joel Wiebe, our Vice President of Operations and Government Relations, is doing just that. This week, your local Chamber has released a statement addressing concerns on the impacts of City budget cuts on our essential local organizations. Please click here to download the letter or find below the attached document.

This past September, the Canadian government announced another 10% cut to international student permits. This isn’t the first cut either. Earlier this year, there was already a 35% reduction in student visas, plus a cap of 364,000 visas this fall (down from last year’s 560,000). So, what’s behind these numbers, and what does it mean for Canada? Here on VOB, we like to dig into these controversial issues and explore how policies impact our communities and businesses. With all these restrictions on international students, there is a lot to unpack—and some potential serious consequences.

The conversation around international students has been heating up, especially with Canada’s housing crisis and labor shortages thrown into the mix. We’re seeing strong opinions on both sides. On one hand, there’s a group that says Canada’s infrastructure just can’t handle the volume of international students coming in. On the opposing side, national student associations argue that international students are wrongly blamed for the housing crisis. Cutting their numbers, they say, also hits universities hard, slashing a vital revenue stream.

And they’re not wrong—Canada’s colleges and universities really rely on international student fees, which are much higher than domestic ones. For example, Fanshawe College recently reported they’re expecting a whopping 39% cut in international students next January, with a 47% drop in first-year international students alone. The council of Ontario Universities also are projecting a loss of nearly $1-billion in revenue over two years with the drop from international student enrollment. Considering the average cost for an international student is around $36,000 a year, these reductions could severely impact funding for our post secondary institutions.

The reliance on international students has sparked some tough questions: are schools too dependent on these higher fees to make up for gaps in public funding? And what happens when this revenue source shrinks? Some wonder if Canadian institutions should rethink their business models and find a more balanced way to fund education without leaning so heavily on international students.

There’s another layer to all this: international students contribute more than just tuition fees. They’re a crucial part of Canada’s workforce, particularly in the hospitality sector. According to Statistics Canada, international students make up around 4.6% of that industry—a big deal in a sector that’s facing labor shortages. Plus, the Canadian Bureau for International Education shows that 70% of international students indicated they want to stay and work in Canada after graduation, which could further add to our growing talent pool. Their economic impact also extends beyond tuition, who support local businesses and contribute millions to the economy in consumer spending.

But, of course, we can’t ignore the housing issue. With more than a million international students in Canada, and vacancy rates as low as 1.7% in Ontario, housing is in high demand. More students mean more pressure on an already tight housing supply, which many Canadians feel directly. This is where the government’s policy shift could ease some of that strain, but it’s a double-edged sword. Fewer international students may help with housing, but it could significantly reduce revenues for post-secondary institutions and even lead to staff layoffs.
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Ultimately, this situation highlights the complexity of relying heavily on international students. The recent policy changes make it clear: this isn’t just about the students. It’s about sustainable planning and strategies that support Canada’s needs, whether it’s in housing, education funding, or labor supply. Moving forward, we can only hope that these policy adjustments drive further investments in the infrastructure and resources needed to make Canada a stable place for everyone—both local and international residents.