Cities in Canada routinely issued these in conjunction with civic festivals. It looks like this one is for an anniversary of the City of Barrie, Ontario. At one time Barrie was home to a big Molson brewery.
They are trade tokens, redeemable at merchants in that city, usually for the length of the festival - but typically they were really sold as inexpensive souvenirs with no intent to redeem.
A similar project was done annually in Hawaii; I'm not sure if it continues to this day.
I often find these types of tokens for less than a dollar in the bargain bins when I attend Canadian coin shows
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