5 ways the new Ottawa budget changes what you pay

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Ottawa’s 2025 budget has passed, and the financial impact is about to get real.

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Effects will be felt across local households and businesses, as property taxes, transit fares, and water fees update. While some residents may feel the pinch, others could see minimal impact.

Here’s a closer look at five ways the new budget will reshape your expenses.

How much are your property taxes going up in Ottawa’s new budget?

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Ottawa homeowners will see a total property tax increase of about 3.9 per cent in 2025, driven by a 2.9 per cent general tax increase and additional transit-related costs. For an average urban home assessed at $415,000, that means a total tax bill of $4,465 ($168 more than last year). The increase breaks down to $80 for city-wide services, $20 for the police levy, and $68 for the transit levy.

In rural areas with Para Transpo and reduced transit service, the tax bill for a $415,000 home will rise by $114 to $3,622. In rural zones with only Para Transpo, the increase will be $100, bringing the total to $3,436.

Actual amounts will vary based on the assessed value of your home.

Will Ottawa police funding cost you more?

The Ottawa Police Service’s 2025 operating budget became a point of debate as council finalized the city’s financial plan.

The approved $442M budget includes a 2.9 per cent levy increase, adding an estimated $20 to the average household’s tax bill and $43 for commercial properties.

While the levy remained within the council’s limits, Chief Stubbs indicated the police had hoped for a larger increase, saying, “It’s going to be very tight (next year).”

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The budget allocates $1 million from Automated Speed Camera (ASC) revenue for district traffic teams. “There’s no driving around looking for traffic infractions, it’s all targeted,” said Stubbs.

Funding also covers 33 new sworn and civilian officers, relying in part on provincial and federal contributions.

A dedicated patrol for the ByWard Market is planned, though councillors raised concerns about the displacement of unhoused individuals to other neighbourhoods.

“There could be some displacement,” acknowledged Stubbs, adding that the goal is to “manage people directly … not scare them away.”

Body-worn cameras, viewed as a step toward greater accountability, won’t roll out as planned in 2024. The program has been pushed to late 2025 or early 2026. Chief Stubbs addressed the delay during the discussion of racial profiling and allusion to the Abdi inquest calling it frustrating. “We’ve had to delay it — and I’m not happy about this,” he said.

The budget passed with an 18 to five vote. Councillors King, Menard, Johnson, Kavanaugh and Leiper opposed it. Troster voiced her dissent later, having been out of the room during the official vote.

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Where will OC Transpo fares change in 2025?

OC Transpo fares and transit policies are changing under the newly finalized 2025 budget, though not all initially proposed hikes will stand. Adjustments were made following public pushback, with a specific focus on seniors, youth and the beleaguered U-Pass program.

Originally, seniors were set to see their monthly pass costs more than double from $49 to $108. The new budget scales this back, keeping the senior monthly pass at $49 through January 2025, with a smaller increase to $58.25 starting in February. Coun. Tierney called the updated plan “a senior’s budget,” emphasizing efforts to balance affordability with operational needs. Free transit for seniors on Wednesdays and Sundays will continue, costing the city $414,000 annually.

Youth pass prices will rise from $99.25 to $104 on Jan. 1, 2025. Plans to eliminate the youth pass entirely by September 2025 remain, with efforts underway to collaborate with school boards and the provincial government to introduce a U-Pass for students.

Concerns persist over the U-Pass, which will see a five per cent fare increase delayed until September 2025 to allow smoother transitions for universities like Carleton and uOttawa. Renée Amilcar, general manager of Transportation Services, promised to work closely with students, acknowledging the challenges of renegotiating the program. “We want to keep the service going,” she said, despite cost pressures.

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Reliability remains another major focus, with Coun. Brockington pointing out that “three in 10 buses are late.” Amilcar outlined plans to hire additional drivers and invest $17 million into maintenance and fleet updates, addressing aging buses and service gaps. Sutcliffe offered a tempered outlook on the city’s ongoing transit funding challenges, saying, “I remain cautiously optimistic.”

The transit budget passed with 18 votes in favour and seven against. Councillors Johnson, Troster, Brockington, Devine, Lowe, King and Menard voted against.

How much more will you pay for trash collection in Ottawa?

Garbage collection fees are going up in 2025. Single-family households will pay $243, a 67.6 per cent increase from last year’s $145.

Multi-residential households will see an even bigger jump, with fees rising 83.5 per cent from $91 to $167. The hikes are part of the city’s strategy to offset growing waste management costs.

What’s the new price for drinking water in Ottawa?

Drinking water will cost two per cent more in 2025, but that’s not the only increase on the horizon. Fees for private service connections and thawing will shift to an hourly rate with an added 15 per cent administration charge.

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Inspections and meter maintenance are also getting pricier. Checking a new water meter will now cost $138, up from $115, while replacing the smallest meter will set you back $481, an increase from $435. The adjustments come as the city recalibrates fees for essential services.

How did each councillor vote for the new Ottawa budget?

The new Ottawa budget passed with 22 councillors in favour and three against. Mayor Sutcliffe and the majority of council supported the budget, while councillors Laine Johnson (College), Jeff Leiper (Kitchissippi) and Sean Devine (Knoxdale-Merivale) opposed it.

Sutcliffe defended the budget, citing a $120 million transit shortfall and a lack of provincial and federal support.

“Residents have been paying more than their fair share of public transit,” he said, pointing to an 11 per cent budget increase for transit as evidence of the city’s efforts. He called for systemic changes to secure sustainable funding.

Critics, like Coun. Devine, argued the budget continues to place too much of the financial burden on riders, failing to prioritize transit as a viable alternative to driving.

smisenheimer@postmedia.com

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