Ottawa city councillors balance budget pressures, tax pledge

Details will emerge Thursday about how the City of Ottawa intends to deal with a projected $36-million shortfallwhen staff presents thedraft budgetfor 2016.

A staff report last month suggested thegap could becoveredin a number of ways, including:

• Increasing user fees.
• Reducingemployee training and overtime.
• Reviewingthe paramedic service and the parks department.

Because some of those reviewswill take time, staffhopeto deal with the immediate financial burden by digging into a reserve fund for replacing vehicles, freeing up $23 million the city intended to spend on its fleet next year. Over at OC Transpo, afare hike of more than 2.5 per cent isn't out of the question.

• OC Transpo eyes fare hike to balance budget

Adding tothe problemis the fact that Ottawais growing more slowlythananticipated,adding fewer new properties to the taxroll. Staff are now counting on only1.3 per cent assessment growth in 2016 instead ofthe typical twoper cent.

The city also paid morefor snow clearing last winterthan expected, and arbitrators this year awarded wage increases for thousands of employees that were higher than what the city had foreseen.

2-per-cent promise

Meanwhilecouncil, led by Mayor Jim Watson, has promised a property tax increase of no more than two per cent for homeowners, insisting the city must rein in spending to keep cost increases close to the rate of inflation.

Like many of his colleagues, Kanata South Coun.Allan Hubleywants to deliver on that taxtargetbecause residents tell him they can't afford big increases.

"It's always hard. Politicians don't like to cut things. They like to add things," said Hubley. "It's a matter of getting everyone around the table that we have to do this for taxpayers."

As chair of the audit committee, Hubleysaid hesees cost-cuttingopportunities all over the place, such as the city's street-sweeping budget.

"We have to figure out how to do things better," he said.

It's just like a household, you avoid repairing your rooftop or postpone it for two years but eventually you have to fix your roof.- West Carleton-March Coun.Eli El-Chantiry

While some other councillors say they're committed to finding efficiencies, they're also cautious about the challenge the two-per-cent pledge will present in coming years.

"There's going to come a time when the two per cent is no longer viable because the road infrastructure needs more than two per cent," said Eli El-Chantiry. His WestCarleton-March ward is the largest in the city, he said, with the most roads and ditches. "It's just like a household, you avoid repairing your rooftop or postpone it for two years but eventually you have to fix your roof."

Putting off maintenance

Putting off planned maintenance today only to have to pay more for it down the road is a primary concern for College Coun.Rick Chiarelli.

"I've been hearing staff talk about some moves that feel good and make you feel like you've accomplished a cut this year,but they are definite increases next year or the year after. So I want to make sure that doesn't happen," said Chiarelli.

Ottawa Public Health, the Ottawa Public Library andOttawa Policewill also present their spending plans Thursday.

City council will vote on the final 2016 budgetDec. 9.

• Follow the latest on City of Ottawa, Ottawa police draft budgets here.