Thursday, December 12, 2024

Council passes 2025 budget with 3.9% tax hike

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Ottawa city council has passed a budget that holds the property tax increase to 3.9 per cent while scrounging up enough extra money to improve parks and boost funding for food banks.

It passed 22 to three, with Mayor Mark Sutcliffe saying it balanced affordability with investment. Except for transit, the result was similar to the draft budget city staff tabled in November, which committed funding to priorities like roads and sidewalks while hiring more police, firefighters and bylaw officers.

In a budget worth $5 billion in operating and $1.7 billion in capital funding, the last-minute changes councillors proposed and debated during Wednesday’s vote were miniscule by comparison.

By far the largest sum, about $5.9 million, will fund a new plan to fill the deficit at OC Transpo, one that falls less heavily on seniors and delays fare hikes for students. That plan is described in more detail here.

But the price tag for all other changes to last month’s draft comes in at a grand total of just $400,000.

Funding for food banks, parks

Council funded them by drawing on a pot of savings in the city’s fuel hedging program, which is intended to reduce the risk of sudden moves in the price of diesel for city vehicles. The savings come from “updated hedging pricing and current economic analysis.”

The city will dole out part of that money to transit, and the rest to a hodgepodge of councillor priorities.

That includes a $200,000 boost to funding for about three dozen food security organizations, far less than they’ve previously asked for as they cope with overwhelming demand. Nonetheless, Ottawa Food Bank CEO Rachael Wilson welcomed the new funding.

“We hope that this additional funding leads way to the $5 million amount that we would ideally like the city to invest in emergency bridge funding,” she said in a statement to CBC.

Another $150,000 in new funding will go to a fund for upgrading park amenities. Recreation and facilities general manager Dan Chenier explained that it will go to capital projects like asphalt pads in ice rinks and tennis courts.

Finally, an extra $50,000 for washrooms will pay for more porta-potties, better cleaning and extended opening hours.

3 councillors vote against budget

While those three new funding commitments got unanimous support, the overall budget earned the opposition of three councillors: College ward Coun. Laine Johnson, Kitchissippi Coun. Jeff Leiper and Knoxdale-Merivale Coun. Sean Devine.

They argued that affordability is about more than holding tax hikes to 3.9 per cent, which equates to $168 in added costs for the typical property taxpayer.

Leiper said skimping on investment now will mean higher taxes later, while Johnson said her residents can’t afford poor public services.

“Can anyone afford to lose their job because the bus didn’t come for a third time this week? Can drivers afford the repairs because their car bottomed out on a pothole?” she asked. “I don’t think this city is broke, but I think we risk breaking it.”

Sutcliffe acknowledged the budget isn’t perfect.

“No budget is,” he said. “Having said that, I believe it strikes a very, very good balance between investing in what matters most in our community, what matters most to our residents, and protecting affordability.”

A majority on council seemed to agree. River ward Coun. Riley Brockington said the budget recognizes there’s a limit on how much residents can pay.

“I think the budget, overall, is solid,” he said.

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