Ottawa mayor touts affordability and focus on transit as $5.8B 2024 draft budget tabled
The city of Ottawa's 2024 draft budget has been tabled at city council. It's a budget that Mayor Mark Sutcliffe says focuses on affordability and public transit.
The city will be spending more than $4.6 billion in operating expenses in 2024 and $1.2 billion on capital investments.
"We have all heard from residents that they are struggling with rising costs and worried about the future of our economy. They don't want to see us add to their burden with big tax increases," Sutcliffe said in his opening remarks.
"I've heard from residents that they are very pleased that last year we approved a budget that met my campaign promise of 2.5 per cent or less. And this budget does the same. We can't add to the financial burden of our residents with big tax increases."
The draft budget includes a maximum 2.5 per cent property tax increase, which would add $105 to the average urban property tax bill next year. The draft budget also includes a 2.5 per cent transit fare hike and 2.5 per cent increases to the police and transit levies.
Sutcliffe noted transit services in particular in his opening remarks.
"Many things have changed as a result of the pandemic. But few have changed more than the way we move around our city. People are travelling downtown less often. They're going to different places at different times," he said. "And let's be abundantly clear: they are taking public transit much less often. Our ridership is down by 30 per cent."
The transit budget is increasing by $31 million in 2024 to $767 million, the second-highest amount of operational spending in the budget, behind $1.2 billion in community services.
However, fares will be going up in 2024. An adult monthly transit pass will be $128.75 starting Jan 1, up $3.25 per month, and cash fares will rise by 10 cents. The EquiPass, Access Pass and Community Pass will remain frozen, but youth and senior monthly passes are going up. The U-Pass will rise to $229. The Para Transpo discounted fare with Access Pass will go up 5 cents to $2.55. The rural Para Transpo fare is rising by a quarter to $10.25.
"I don't think that they should be doing that. I mean, considering the quality of the train the last couple of months and everything. Feels like a bit of a slap to the face I guess," said transit rider Poya Movlai.
But some riders still think it's good deal.
"Beats the car. You’ve got car payments, insurance, gas, fuel, maintenance. Listen, you still can't beat it," said Fio DiPaolo. "Sure it's gonna cost more. Things are rising everywhere right? So yeah, I expect it to rise again in the near future."
The recently announced route and service cuts by OC Transpo amounted to $10 million in savings, but Sutcliffe says it will lead to greater investment.
"These are tough decisions. But I know the public understands that we must invest our transit dollars wisely and for the greatest impact," he said.
The 2024 transit budget estimates $322 million in revenue, approximately $5.8 million above 2023, and $409 million in operating expenses.
The budget also includes a 2 per cent cost of living increase to all recreation fees and an increase in garbage fees. Homeowners will also face a 4.3 per cent increase in water and wastewater rates in 2024. Urban connected residents will pay approximately $41 more next year for water. Rural residents will pay an extra $11.24 in storm water fees.
The city is forecasting a 1.7 per cent increase in new properties next year, up slightly from the 1.5 per cent forecasted in the budget directions. This will bring in an estimated $4.125 million, which will be directed toward transit services, staff say.
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The budget also includes $214 million towards housing and more than $900 million in infrastructure spending, which includes more than $100 million in road repairs and $14 million for new multi-use pathways.
Wednesday's meeting begins the marathon budget process. In the coming weeks, city committees, commissions and boards will be tabling their own budgets to present to city council for a final vote on Dec. 6.
Last year's budget came in at $5.5 billion, including $4.5 billion in operating costs and $1.06 billion in capital costs. Last year's budget capped tax increases at 2.5 per cent.
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