Tough city budget to be drafted on mayor's directions

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 targetspassed in a 17to 8 vote at city hall on Wednesday. Now, city staff will develop a draft budget to present onNov. 13.

Mark Sutcliffe has said thatbefore instituting a larger property tax increase, he wantsto convince the Ontario governmentto provide the city with transit subsidies equivalent to municipal counterparts in the Toronto area.

He's also urging the federal governmentto pay a morefor its equivalent of property taxes.

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Orlans South-NavanCoun. 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 someunderlined the city also needs to ensure no dollar is wasted.

The city hasfound $153million 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 thatsmall group aimed at identifying ways to trim spending.

Carr said thekey problem forcities is having torely on the regressive property tax and that increasescan greatly affect seniors who might own property but have lower incomes.

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In addition to a 2.9 per cent property taxincrease 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 Transpoandthe mayor has said thepublic needsto be aware of the tough, unfairchoices that could be required to address the department's$120 million structural deficit.

'Compounding decline'

Thecouncillorswho opposedthe mayor's budget directions argued the citycan't even keep up with repairs tosidewalks 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 ona 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. Shecalled a2.9 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 Brockingtontried 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 MarkSutcliffeand councillors Cathy Curry, Steve Desroches, Stphanie 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 tosetting 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.