The City of Ottawa’s draft budget for 2025 will be crafted based on the mayor’s approach of raising property taxes by 2.9 per cent and exploring an unknown mix of difficult cuts and price hikes on transit.
The budget targets passed in a 17 to 8 vote at city hall on Wednesday. Now, city staff will develop a draft budget to present on Nov. 13.
Mark Sutcliffe has said that before instituting a larger property tax increase, he wants to convince the Ontario government to provide the city with transit subsidies equivalent to municipal counterparts in the Toronto area.
He’s also urging the federal government to pay a more for its equivalent of property taxes.
Orléans South-Navan Coun. Catherine Kitts agreed the mayor should continue “fierce advocacy” for funding.
Many councillors stressed their residents don’t want to see big tax hikes, while some underlined the city also needs to ensure no dollar is wasted.
The city has found $153 million in savings over the past two budget cycles that have helped avoid a higher tax increase, pointed out Alta Vista Coun. Marty Carr, who is on that small group aimed at identifying ways to trim spending.
Carr said the key problem for cities is having to rely on the regressive property tax and that increases can greatly affect seniors who might own property but have lower incomes.
In addition to a 2.9 per cent property tax increase to pay for city services generally, city staff will consider steep cuts to transit services, a significant fare hike, or a much higher transit levy on tax bills.
The budget is expected to be grim for OC Transpo and the mayor has said the public needs to be aware of the tough, unfair choices that could be required to address the department’s $120 million structural deficit.
‘Compounding decline’
The councillors who opposed the mayor’s budget directions argued the city can’t even keep up with repairs to sidewalks or community centres and said taxes could go up more to meet the needs of a growing city.
Basic services have been underfunded, they said, because the city hasn’t raised taxes in line with inflation as other cities have done. In 2022 Sutcliffe ran on a promise to cap property taxes at 2.5 per cent in 2023 and 2024, which the city did.
Coun. Laine Johnson said she was embarrassed to be in conversations trying to reassure residents in College ward that things will improve. She called a 2.9 per cent tax increase “a promise to fail our residents further.”
The budget directions would lead to “compounding decline”, agreed Knoxdale-Merivale Coun. Sean Devine.
River ward Coun. Riley Brockington tried to remove wording that will allow staff to explore cuts to transit service, but that amendment failed.
The votes
The final budget directions report was supported by Mark Sutcliffe and councillors Cathy Curry, Steve Desroches, Stéphanie Plante, Tim Tierney, Riley Brockington, Wilson Lo, Marty Carr, Clarke Kelly, Glen Gower, Allan Hubley, and Laura Dudas.
Catherine Kitts, George Darouze, Matt Luloff and David Brown supported the overall directions, but dissented on the direction related to setting stormwater rates for water bills.
David Hill dissented on the direction that asked the police to develop a budget based on a 2.9 per cent increase.
Meanwhile, councillors Laine Johnson, Jeff Leiper, Rawlson King, Sean Devine, Theresa Kavanagh, Shawn Menard, Ariel Troster and Jessica Bradley voted against the entire budget directions report.