Ottawa budget prediction puts the heat on tax freeze promise

Keeping Mayor Larry O'Brien's election promise of freezing Ottawa's taxes for four years will likely require drastic service cuts, city staff revealed Thursday.

At a special morning budget briefing, staff presented the city's long-range financial plan to city council.

For next year alone, staff members project a budget wherecosts outstrip revenuesby$95-million— $20 million more than predicted earlier.

'They don't like to pay more taxes, but they definitely don't like to see their services cut.' —Coun. Alex Cullen

Just maintaining city serviceswill require a 10 per cent tax hike next year, they estimate, andeight per cent increases will also be needed each of the next three years.

To achieve the tax freeze under the circumstances, staff suggested councilcould cut services, boost user fees and transit fares, andputoff improvements to social housing.

The city could alsoborrow moneyand askthe province for an additional $16 million to cover services that provincial laws require the city to provide.

Coun. Alex Cullen said council will have trouble pleasing residents, whether it freezes taxes or not.

"They don't like to pay more taxes, but they definitely don't like to see their services cut."