Sutcliffe keeps tax hike promise in 'tight' $5.5B city budget
Mayor warns future budgets will be under 'signifcant' pressure without help
The first budget tabled by Ottawa Mayor Mark Sutcliffe has delivered on some of his key election promises, from holding property tax increases to 2.5 per cent to freezing transit fares and increasing funding to social service agencies.
Sutcliffe also made good on his vows to pour more money into road improvements and affordable housing, while investing $5 million in base funding for the city's climate plan.
"A city budget is not really about data," said Sutcliffe in his inaugural budget speech Wednesday morning. "It's about people and neighbourhoods. It's about programs and services. And it's about intentions and priorities."
Sutcliffe said staff were able to find $54 million in savings and efficiencies in the city's $5.5 billion budget. Most of those savings — more than $47 million — come from the transit budget, and include cutting 117 buses and reducing the amounts the city is putting toward transit capital costs.
Because the city is expecting a 2.2 per cent increase in tax revenue due to a rising number of new property owners, and because most of the city's collective agreements are locked in for a few years, the mayor was able to bring in a relatively low-tax budget despite inflationary pressures.
But Sutcliffe warned that situation can't continue without help from higher levels of government.
"Make no mistake, this is a tight budget," he said.
"If the provincial and federal governments don't support the financial gaps we have in transit and other areas, if we don't receive funding to address the lost revenue associated with Bill 23, and if we don't receive support to build the housing we need over the next 10 years, we will face significant budget pressures in 2024 and beyond."
Average taxpayer on the hook for an extra $104
The 2023 budget calls for $4.5 billion in operational spending and another $1 billion for capital.
For an owner of an average-assessed urban home, taxes would increase by $104, while a rural homeowner would pay an additional $85.
Water and sewer rates are also set to rise in 2023, by an average of $38 for an urban homeowner or $10 for a rural homeowner.
City needs $39M to balance transit budget
The transit budget continues to be under pressure due to the ridership drop during the COVID-19 pandemic.
The city is assuming 70 per cent of pre-pandemic ridership levels for 2023 and will freeze fares across the board, as Sutcliffe promised during the 2022 election.
A fare freeze, Sutcliffe said, "not only helps with the affordability crisis but also demonstrates respect to our customers and their recent experiences with trains and buses."
To that end, OC Transpo is planning a major rethink of where buses are deployed, but says no routes will be cut.
Even though OC Transpo has found $47 million in savings by getting rid of 117 old buses it doesn't use and by putting off contributions to future capital projects, it will need $39 million from upper levels of government to make its 2023 budget work.
Details of the transit budget will be hashed out at the Feb. 9 transit commission meeting, where the public can also weigh in.
Recreation fees up 2 per cent
The budget includes a two per cent increase in recreation fees, in line with previous budgets, and a promise to make recreation and cultural programming more affordable for low-income families.
It sets aside $4.5 million in new funding for social services in Ottawa, including $2.1 million for community agencies that support racialized youth, prevent gender-based violence and improve community-based access to mental health programs.
The community funding framework fund is also growing by $1.3 million to total $27.5 million. That fund helps agencies that deliver services to residents facing the greatest needs, as well as non-profits and Indigenous organizations.
New money to fight climate change
The 2023 budget also creates stable funding of $5 million yearly for Ottawa's climate change master plan.
"You invest in things now, like retrofits, and it'll save us money in the future. So I'm just really glad to see that base funding," said Capital ward Coun. Shawn Menard, who chairs the environment and climate change committee and pushed during the last term of council for predictable money.
Until now, there was no specific amount set aside each year for initiatives such as installing electric vehicle charging stations or putting heat pumps into low-income housing.
Instead, the money varied each year, depending on the dividend the city received from Hydro Ottawa.
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with files from CBC's Laura Glowacki and Kate Porter