Ottawa city staff have drawn up a budget that would hike taxes and transit fares to patch over a gaping transit deficit.
Even then, it only balances by assuming the federal or provincial governments will come to the rescue with millions more.
If council passes the draft budget, property taxes would go up by 2.9 per cent to fund most city services, though an eight per cent hike to the transit levy means most taxpayers will effectively pay 3.9 per cent.
That’s just a fraction of the $120 million the city needs to come up with for its beleaguered transit system. Fares will go up five per cent, adding 19 cents and bringing the cost of a ride to $3.99.
The city will also reduce fare discounts that currently benefit seniors, youths and others.
Mayor Mark Sutcliffe said there will be no service reductions, though there will be capital deferrals and millions in “efficiencies.” He repeatedly said that the budget strikes a balance amid challenges that make it impossible to satisfy everyone.
“Given the pressures we’re facing, when we’re still fighting for our fair share from other levels of government, we have to work extremely hard to achieve that balance,” he said.
“While we wait for more sustainable funding solutions, we’re going to have to do a lot of patchwork and use a lot of duct tape to get through each budget year.”
$36M gap 4 weeks from final vote
Even so, the 2025 draft budget includes a “placeholder” that banks on $36 million coming through from higher levels of government, a contribution that neither has hinted is on the way.
Sutcliffe said he can’t yet make a decision on what will happen if that money doesn’t come through, saying there are no palatable solutions.
“Obviously, I’m not standing here today with cheques from the other two levels of government,” he said. “I can tell you however that we are making progress. I hope there will be more news in the coming weeks.”
He said the budget will still invest in the city’s greatest priorities, such as public safety, roadwork and housing. For example, Sutcliffe said the budget commits enough funding to hire 50 new police staff, 23 new paramedics, 22 new firefighters and 10 new bylaw officers.
It will also include about $104 million to improve roads and sidewalks.
Sutcliffe said city staff managed to find $54 million in savings to help pay for those commitments. There is a hiring pause and a discretionary spending freeze.
After a high-level question period from councillors on Wednesday, the budget will go through about a month of detailed debate and public input at committee. It is then expected to come back to council on Dec. 11 for a final vote.