The City of Ottawa's finance team has closed the books on 2021 and, despite hundreds of millions in pandemic costs, the municipality still ended the year with a $52 million surplus, a city committee was told Tuesday.

The municipality recorded $353.7 million in expenses and lost revenue last year due to COVID-19, but almost all of that large sum was covered by the provincial and federal governments. The city also has more than $40 million in funding to spare to be used in the current budget year.

The biggest pandemic drain of 2021 was, once again, the $133 million from OC Transpo, with its lost ridership and fares. Ottawa Public Health saw increased costs of $83.7 million, while the department that runs the respite centres and other social services also needed $72 million.

Despite the reduced ridership, the transit department finished the year with a $15 million surplus because it spent less on compensation due to job vacancies. OC Transpo also withheld some monthly payments from Rideau Transit Maintenance. That surplus now goes back to transit reserves.

The public works department, meanwhile, saw a $17.8 million surplus. As an example, the department spent $3 million less than expected on winter maintenance thanks to fewer storm events, which led to less snow removal and less salt used on roads.

The Ottawa Public Library was among other arms of the city to see a surplus — $5.2 million in 2021 — and much of that will be returned to its reserves for construction of the new central library, which has become far more expensive than originally planned.

At the finance and economic development committee on Tuesday, some councillors zeroed in on the $7.5 million surplus for housing services and were told it would go back to reserves to be earmarked for housing projects.

Only a few areas of the city ended the year in the red, including the Ottawa Police Service with its $8.1 million deficit. That was mostly due to a labour relations job evaluation settlement, city staff said.

The police will cover $5 million of that deficit by taking on debt and by refinancing its planned new Barrhaven campus, while the city's tax stabilization reserve will cover the rest.

The City of Ottawa's account related to payments received in lieu of taxes from federal buildings also recorded a loss.

That was partly due to the Ottawa International Airport, which paid less because it had fewer passengers due to the pandemic. Federal buildings paid less after the Ontario government made an education tax change intended to help small businesses.

Mayor Jim Watson says he has been lobbying federal and provincial ministers to "recoup" those dollars.

In total, some $20 million will be put into the tax stabilization reserve. Of that $13.6 million has already been earmarked, a city committee stated just last week, to keep the pandemic respite centres going.

That leaves $6 million for the unknowns of 2022, according to city treasurer Wendy Stephanson. Some examples of heightened costs this year include rising fuel prices or inflationary pressures the city has not yet forecast.