City of Ottawa draft budget not expected to make waves

For latest on how much taxes, recreation fees and water rates went up in the draft budget for 2015, click here.

Ottawa residents can expect a "steady as she goes" 2015 budget today that holds the line at a two per cent tax increase, while setting aside millions for special projects that will be determined later.

The draft budget will be tabled at Ottawa City Hall later this morning.

"The budget in my opinion I think is going to be both progressive and affordable," mayor Jim Watson told reporters yesterday.

"We're trying to find that balance between ensuring that taxes remain at the two per cent level, at the same time providing good public services, so you're not going to see any kinds of slashing and burning approach. I think you've seen the last four budgets are pretty much steady as she goes, and I'm looking forward to presenting that (again)."

Last year's budget saw residential property taxes rise by 1.91 per cent, the lowest rate increase since 2007.

City council has directed staff to come up with a 2015 budget that again falls within that two per cent tax target, and city treasurer Marian Simulik says her department has met that challenge.

"We're presenting a budget that we think will deal with the things council wants to deal with," Simulik said.

As always, that means striking a fine fiscal balance between maintaining — and in some areas, expanding — services for a growing population, and keeping spending in check to meet the council-approved tax target.

As usual, transit users can expect to shoulder their share of the budget burden to ride OC Transpo, but fare increases are expected to be minimal.

"Fares have been consistent with the transit rate of inflation, consistent with our long range financial model that we passed a few years ago, and I would expect the fare table (in the 2015 budget) will be consistent with that," said transit commission chair Stephen Blais.

Recreation fees expected to be frozen

But with major capital spending on light rail and new double-decker buses already on the books, don't expect any surprises in the 2015 budget. "It's really steady as she goes with OC Transpo, and preparing for that transition into light rail," said Blais.

Recreation fees, frozen since Watson was elected mayor in 2010, are expected to remain that way.

Watson's recent campaign promises included improving access to community housing, boosting local business through economic development, building community gardens, making side streets safe from "speed demons," and planting hundreds of thousands of trees.

All of those will require funding, money that's expected to come from savings from programs that were once the city's responsibility, but have recently been uploaded to the province.

Of course city councillors have their own ward wish lists, including road improvements, traffic calming, and renovations to recreation facilities. However many of those items will have to wait until after the budget is passed, because city council hasn't yet set its priorities for the term.

"The details about what's in there will actually not start to be fleshed out until they start the term of council priority process, which starts right after the budget and finalizes by June of this year," says Simulik.

She says a special funding envelope of roughly $5.4-million has been set aside to deal with operating costs, and another $32-million for capital costs related to those priority projects.

Money for gang exit strategy in budget?

One big budget question remains whether any money will be set aside specifically for a gang exit strategy, and how much. A program designed to keep adult gang members away from the gang lifestyle has been described as a "gaping hole" in the city's overall strategy, which has come under the spotlight following a record 49 shooting incidents in Ottawa in 2014.

While there's been no official cost estimate, it's thought such a program would require a city investment in the neighbourhood of $300,000.

However the chair of the city's Police Services Board, Eli el-Chantiry, warned yesterday that while an exit strategy would be "a step in the right direction," there's no quick fix to Ottawa's gang problem.

"I'm not (so) naive to think this strategy is going to take away the hardcore gang member from the lifestyle they have, to do a job at (a fast food restaurant) for 12 dollars an hour...I don't have much hope we can correct that with a small amount of money, or with any amount of money," said el-Chantiry.

He says any strategy must involve a comprehensive approach, including prevention, mentorship, job training, a concerted anti-poverty effort, and spending from other levels of government. "We all have to work together on it."

While residential property taxes and transit fares are expected to rise at more or less the rate of inflation, homeowners can expect a steeper spike in the water and sewer rate.

Water, sewer bills climb higher

Homeowners saw their water bills grow by seven per cent in both 2013 and 2014, translating into an increase of $46.70 and $50.05 respectively. A similar escalation is anticipated in 2015 to pay for continuing infrastructure fixes.

Ottawa's annual operating budget currently sits around $3-billion, while the capital budget hovers between $600-million and $800-million in a typical year.

Both 2015 draft budgets will be tabled with at a special meeting of city council at 10 a.m. Council will also receive draft budgets for each of the city's standing committees, as well as the Transit Commission, Police Services Board, Public Library Board and Public Health Board.

There will be four public consultation sessions, beginning next Monday, Feb. 9. City council will finalize the 2015 budget on Wednesday, March 11.