Ottawa city councillors balance budget pressures, tax pledge
Keeping 2-per-cent promise could mean putting off planned maintenance
Details will emerge Thursday about how the City of Ottawa intends to deal with a projected $36-million shortfall when staff presents the draft budget for 2016.
A staff report last month suggested the gap could be covered in a number of ways, including:
- Increasing user fees.
- Reducing employee training and overtime.
- Reviewing the paramedic service and the parks department.
Because some of those reviews will take time, staff hope to 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, a fare hike of more than 2.5 per cent isn't out of the question.
Adding to the problem is the fact that Ottawa is growing more slowly than anticipated, adding fewer new properties to the tax roll. Staff are now counting on only 1.3 per cent assessment growth in 2016 instead of the typical two per cent.
The city also paid more for snow clearing last winter than 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
Meanwhile council, 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 Hubley wants to deliver on that tax target because 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, Hubley said he sees cost-cutting opportunities 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 West Carleton-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 and Ottawa Police will also present their spending plans Thursday.
City council will vote on the final 2016 budget Dec. 9.