Ottawa homeowners to face tax hike and higher fees for transit, recreation and water services in 2024 as proposed by City of Ottawa staff
City of Ottawa staff are proposing the 2024 budget be drafted with a maximum 2.5 per cent property tax hike, along with higher fees for transit, recreation and culture activities, garbage collection and water and wastewater services.
The finance and corporate services committee will vote Sept. 5 on the directions to staff for developing the 2024 operating and capital budgets. As part of the budget development process approved by the new Council last December, a specific direction is required from elected officials for a tax target to guide staff in developing the operating and capital budgets for the new year.
“The 2024 Draft Budget will demonstrate a commitment to core investments in physical and social infrastructure, keeping residents safe and secure, supporting affordability and housing, protecting the environment, and promoting quality of life in communities across Ottawa,” the report says.
Staff are recommending the 2024 tax increase be capped at 2.5 per cent, which would follow Mayor Mark Sutcliffe’s campaign promise for a maximum tax hike of 2.5 per cent in 2023 and 2024.
The Ottawa Police Service levy and the Transit Service levy would each increase by no more than 2.5 per cent.
The report says the 2024 budget pressures include salary increases for staff, along with “estimated inflationary increases on fuel, utilities, contracts, and capital construction impacts.”
“The current external economic conditions and supply chain pressures have resulted in inflationary pressures impacting all City Services. Increases on construction indices, parts and supplies will have an impact to the 2024 budget pressures.”
The report says several service reviews have been conducted at Ottawa City Hall this year to ensure “efficiencies were identified,” including the Facility Use Optimization Review, the Fleet Optimization Review and a Revenue Opportunities Review.
The 2024 budget will also include a list of proposed efficiencies and opportunities for Council to consider.
Staff say OC Transpo is facing the “greatest financial challenge” of all city departments, with a projected $35 million shortfall in fare revenue next year. The report says staff are continuing the “Service Review to reduce spending” next year, including aligning bus routes to current ridership levels and reducing payments to rail contractors based on “current conditions.”
The 2.5 per cent hike in property taxes, along with a projected assessment growth of 1.5 per cent in 2024, would generate $81.3 million in new funding to support city services. Staff say the city would receive $49.3 million in new revenue, transit would see an additional $15 million, Ottawa police would receive $13.375 million in new funding, while the Ottawa Public Library would get $2.370 million.
The staff report says a 2.5 per cent property tax increase would cost the average urban property taxpayer an additional $105 in 2024, while rural homeowners would see the property tax bill increase $86.
The proposed budget would also include a 2.5 per cent hike in transit fares, a 2 per cent cost of living increase to all recreation fees and an increase in garbage fees. Homeowners will also face a projected 4.3 per cent increase in water and wastewater rates in 2024.
The 2024 draft city of Ottawa budget will be tabled to Council on Nov. 8. Council will finalize the 2024 spending plan on Dec. 6.
This article was reported by CTV News
