City of Ottawa ends 2021 with multi-million dollar budget surplus

Ottawa City Hall (File photo)

The city of Ottawa's operating budget ended 2021 in the black, thanks to COVID-19 funding from the upper levels of government.

A report for the finance and economic development committee shows tax-supported services ended 2021 with a $35.4 million surplus, while rate supported programs posted a $4.6 million surplus.

COVID-19 funding from the upper levels of government, cost saving initiatives, increased revenues and reduced spending are credited for the budget surplus at the end of last year.

Staff say the budget impact of COVID-19 for all city of Ottawa departments was $353.8 million in 2021, including OC Transpo, the Ottawa Police Service and Ottawa Public Health.

"A total of $349.035 million of support funding from senior levels of government was applied to COVID-19 related expenditures in 2021, with an additional $4.752 million expected to be received in 2022 for Paramedic Service," staff say.

Looking at the individual departments, the Community and Social Services department posted a $14.9 million surplus. The Public Works and Environmental Services department posted a $17.9 million surplus thanks to lower snow removal costs and increased recycling revenue.

OC TRANSPO/POLICE BUDGETS

OC Transpo posted a $15 million surplus in 2021, after initially forecasting a $16.954 million deficit last year.  Staff say the surplus is mainly attributed to reduced compensation due to vacancies and lower O-Train service maintenance costs.

The Ottawa Police Service posted a $5.238 million deficit in its operating budget. Staff say the deficit is "mainly driven by the labour relations job evaluation settlement" reached in the final quarter of 2021.

The Ottawa Public Library Board posted a $5.244 million surplus last year.

WATER/WASTEWATER SERVICES

The city of Ottawa found some green in the water and sewer pipes last year.

The city posted a $4 million surplus in Drinking Water Services and $19,000 in Wastewater Services.

Staff say the drinking water surplus was due, in part, to savings in utility costs and reduced repair costs because of fewer water main breaks.