Tax hike remains unclear as councillors approve broad budget directions

Members of Ottawa's finance committee have kicked off budget season by approving a broad set of directions for staff, including the possibility of large hikes to transit fares and a levy that could see a leap in tax bills.

Many councillors expressed relief at the proposed 2.9 per cent property tax increase and options for transit, though some worried they rule out service improvements and leave riders in a precarious position. 

"It was a difficult balance, but we strive for a balance," Mayor Mark Sutcliffe told CBC after the meeting. "The struggle to keep our tax increases as low as possible while investing in the core service and programs that residents rely upon is very similar to the challenge that many households in our community are facing." 

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Sutcliffe also said he continues to feel confident that his "Fairness for Ottawa" lobbying campaign will provoke higher levels of government to step up and fill the $120-million transit funding gap. 

But if it fails, finance staff would fashion an alternative budget that could see much higher fares, reduced service or a bigger transit levy.

Options for transit not 'palatable'

Several councillors came out swinging at Monday's finance meeting, fuelled by public frustration with the idea of further deteriorating bus and train service. They said an affordable transit service needs to be maintained if there's any hope to rebuild OC Transpo. 

"That's just not palatable at all with my residents," said River ward Coun. Riley Brockington. "I wouldn't want to give you a false acceptance that they are OK, which in fact they're not."

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The only remaining option is a transit levy, which would add as much as an extra seven per cent to tax bills.

"We don't want to cut service, we don't want to raise fares, but the easy answer is not putting it on the tax bill," said Orléans South–Navan Coun. Catherine Kitts.

The latest transit statistics show only four per cent of residents in her ward use public transit. Kitts said when she enters her own address into the OC Transpo travel planner, it says "route not available."

"It will be a very hard pill to swallow for residents and wards like mine that don't have services that other parts of the city enjoy," Kitts said.  

Keeping up with growth

Another point of contention is whether setting a property tax increase at 2.9 per cent will provide enough room in departmental budgets to adjust for growth and new programming. 

Kitchissippi Coun. Jeff Leiper used the example of snow removal, which has seen its budget rise for years — but not enough to pay for the hundreds of kilometres of roads added annually. 

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Leiper suggested a similar cash crunch awaits social services now dealing with the stress of population growth.

"All of those require people, but the number of people who are employed to deliver those services is remaining relatively stagnant," he said. "It's not a cut of dollars, but it is a cut of the resources." 

Others called for greater funding for parks, sidewalk repair, beaches and more — along with space for creative solutions no one has considered yet. 

"Every budget process I ask general managers, 'Do you have sufficient funds to deliver services to meet the needs of Ottawa residents?' And the answer is always yes," said Brockington. 

"And then I meet with directors and senior managers during the year and they say, 'We're drowning. We don't have enough funds.'" 

The directions report passed by nine votes to three, with councillors Rawlson King, Jeff Leiper and Shawn Menard voting against it. It will go to a full council vote on Wednesday, with staff set to table a draft budget Nov. 13.