Ottawa mayor reaffirms tax freeze promise

Ottawa city staff have predicted a $95-million budget shortfall next year, but Mayor Larry O'Brien says that doesn't jeopardize his election promise to freeze property taxes for the next four years.

"I feel fairly comfortable that we can hold taxes this year," he said Thursday.

Headded that after next year's city budget is passed at the end of March, he andhis staff will come up with a long-term solution to the city's financial problems"which will include a lot of reorganization in terms of the way we row our ship."

City staff presented city council with the city's long-term financial plan at a briefing on Thursday morning.

Council was told thecity's projected spending is $95 million more than its projected revenues next year anda tax hike of 10 per cent is needed to maintain the city's services at current levels.Staff said similarly,eight per cent hikes are needed for each of the three years after that.

Thecity's financial planning manager, Tom Fedec, saidthe city could cover part of that by borrowing.

"Unfortunately, when we actually issue the debt, we'll have future debt charges to repay in future years, so it's really a short-term solution," he said.

Coun. Rick Chiarelli (Ward 8, College) is one council member who thinks a tax freeze is all but impossible without cuts to services.

"You cannot cut a projected tax increase of eight or seven per cent down to zero without affecting services because all the city does is services," he said.

But O'Brien said he isn't convinced all the long-term spending commitments made by the previous council are necessary.

"And I think we have to take a long, hard look at … that wish list."

O'Brien suggested that the city could save money by finding alternate ways of delivering services, such as through partnerships with not-for-profit organizations such as the Ottawa Mission.