Budget week at Ottawa City Hall as city faces 'unprecedented' pressures

Ottawa City Hall (CTV News Ottawa)

Ottawa residents will learn about how the city of Ottawa intends to spend their tax dollars this week, as the 2023 draft budgets are presented at Ottawa City Hall.

Ottawa Public Health, the Ottawa Public Library Board and the Ottawa Police Services Board will table their draft budgets, before city staff table the full 2023 city of Ottawa draft budget on Wednesday.

Council voted to direct staff to draft the city budget with a 2 to 2.5 per cent property tax hike, and directed the library, public health, police and transit commission to develop draft budgets with a maximum 2.5 per cent increase.

If approved, a 2.5 per cent property tax hike would increase property taxes for the average urban homeowner by $104 this year, including the police and transit levies.

Ottawa Public Health

Ottawa Public Health will be the first city of Ottawa external board to present its 2023 budget when staff unveil the budget during tonight's Ottawa Board of Health meeting.

Board chair Catherine Kitts is already raising concerns about capping the budget envelope at a 2.5 per cent hike for Ottawa Public Health.

"OPH is still experiencing increased demands on their workforce, and I think the pandemic uncovered some of the ways in which OPH work can grow within the community, especially with respect to community wellness hubs," Kitts told Newstalk 580 CFRA's Ottawa Now with Kristy Cameron.

The Ontario government covers 70 per cent of the OPH budget, with the city covering the remaining 30 per cent.

Kitts says that while Ottawa Public Health still focuses on COVID-19, it must address other needs in the community.

"There is some catch up work to do now, with that shifting of priorities - dental screening, childhood vaccination program above and beyond COVID-19 vaccines, and now what we're anticipating is the burden of infectious disease continues at a high level beyond just COVID and that will continue as well," Kitts said.

"We have to account for that with funding, and also account for the population growth and the inflationary pressures that everybody's feeling."

Kitts says she would like to see the Ontario government increase funding to help OPH respond to the needs of the community.

"We need more public health and not less at this time," Kitts said. "We know that demand for mental health resources is incredibly high, we're facing the opioid crisis. We recognize that during the pandemic that shift to sort of community wellness hubs that provided care, resources right in communities … worked really well."

A 2.5 per cent increase would result in an additional $1.24 million for Ottawa Public Health this year.

Kitts says the Ontario government has committed to covering "extraordinary costs" related to the COVID-19 response into 2023.

The 2022 Ottawa Public Health budget was $123 million, including $95 million from the province, $26 million from the city of Ottawa and $1.1 million from other sources of revenue.

City of Ottawa facing challenges

The 2023 city of Ottawa budget to be presented on Wednesday will include a one-year transit freeze and a 10 per cent reduction in some youth recreation fees, after council passed motions last month.

Acting City Manager Wendy Stephanson has warned the city is facing "unprecedented inflationary pressures" due to external economic conditions and supply chain pressures, and council will need to consider efficiencies and spending deferrals to stay within the 2 to 2.5 per cent budget increase.

"Significant increases on fuel, construction indices, parts and supplies will have a significant impact to the 2023 Budget pressures," the report said. "Staff will also include a list of efficiencies and opportunities as part of the tabled 2023 Budget."

Mayor Mark Sutcliffe has called for a line-by-line spending review to find $35 million in efficiencies at Ottawa City Hall.

Here is the schedule for the 2023 budget releases

Ottawa Board of Health - 5 p.m. Monday

Ottawa Public Library Board - 5 p.m. Tuesday

Ottawa Police Services Board - 8:30 a.m. Wednesday

Ottawa City Council - 10 a.m. Wednesday

Council will finalize the 2023 city of Ottawa budget on March 1.