PROPOSED BUDGET INCLUDES 2.5 PER CENT INCREASE IN TRANSIT FARES
The City of Ottawa’s Finance and Corporate Services Committee has voted in favour of budget directions, timeline, and consultation processes for 2024.
The draft budget includes a maximum 2.5 per cent property tax increase, along with a 2.5 per cent hike in transit fares, a 2 per cent cost-of-living increase to all recreation fees, and an increase in garbage fees. This occurred despite several public delegations urging councillors to invest in public transportation, and the climate and to reduce the policing budget.
After a presentation on the budget directions report presented by staff, councillors voted 9-3 in favour of the budget. Mayor Mark Sutcliffe and councillors Riley Brockington, Cathy Curry, George Darouze, Laura Dudas, Glen Gower, Catherine Kitts, Matt Luloff, and Tim Tierney voted in favour, and councillors Jeff Leiper, Shawn Menard, and Rawlson King voting against.
“The purpose of this report is to seek council approval for the targeted property tax increase, estimated assessment growth rate, and strategies for the development of the 2024 draft budget as per the Council approved Budget process,” city staff explained in their presentation.
The 2.5 per cent municipal tax increase in the draft budget consists of various levies, and staff recommended the tax hike be capped at this number to support Mayor Mark Sutcliffe’s campaign promise of a maximum tax hike of 2.5 per cent in 2023 and 2024.
The Transit Service levy and Ottawa Police Service levy would increase by no more than 2.5 per cent each as well.
Some councillors voiced concerns with inadequate funding in terms of fares and levies towards transit services, including Councillor Shawn Menard.
“In 2022, the transit levy was up to 4.5 per cent. In 2021, the transit levy was 4.6 percent. In 2020, up to 6.4 per cent was approved. So what we’re doing is reducing the amount going to the transit budget overall and we’re saying that we’re trying to improve service. That’s not going to happen with a bunch of those reductions.”
City of Ottawa staff are also projecting a $6.6 million deficit by the end of 2023, largely due to extreme winter weather conditions.
As per a presentation by city staff, Ottawa saw above-average snowfall, freeze-thaw cycles, and freezing rain, including a severe ice storm in April. Staff highlighted this as the cause for a $19.7 million budget deficit created in the first six months of 2023.
At the same meeting, the committee voted in favour of purchasing a former Catholic seminary at 1245 Kilborn Place for $18.5 million, for the development of a supportive housing community hub as well.
The draft budget will be tabled at City Council on Wednesday, November 8. Standing committees will meet in November and early December to discuss their portions of the 2024 draft budget.
Residents, businesses and community groups will be able to take part in delegations and participate in any Councillor-led public consultations on the draft budget.
Council will debate and adopt the final budget on Wednesday, December 6.
