City of Ottawa ends 2023 with a budget surplus

City of Ottawa building is seen in this undated photo. (Jim O'Grady/CTV News Ottawa)

The city of Ottawa ended 2023 with a multi-million dollar budget surplus, despite a series of severe weather events that hit the capital in the spring and summer.

A report for the finance and corporate services committee shows the city's tax-supported services ended 2023 with a $14.858 million budget surplus, while there was a $458,000 deficit in water and wastewater services. The city had projected a $6.6 million deficit for the year.

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The biggest hit to the city of Ottawa's budget was the Public Works department, which reported a $37 million deficit last year. Staff say the deficit is the result of the January to April winter weather, the response to the April 5, 2023 ice storm and the cleanup from the July tornadoes in Barrhaven.

"These severe weather conditions resulted in significant operational costs associated with maintaining the road, sidewalk and pathway networks and the maintenance and repair of related vehicles, resulting in the Roads winter maintenance deficit of $26.6 million," staff said.

"Non-Winter maintenance costs were $1.8 million higher due to maintenance and repair of related vehicles and liability claims were $3.6 million higher than budget."

The city's emergency and protective services department posted a $2.896 million deficit in 2023, mainly due to higher compensation costs.

Staff say the Recreation, Cultural and Facility Services department reported a $1.9 million deficit, mainly due to a shortage in membership, admission and registration revenues.

Those budget deficits were offset by surpluses in the Community and Social Services department ($3.6 million) and the Planning, Real Estate and Economic Development ($2.28 million).  The report also shows the city saw a $33.29 million surplus in Payment-in-lieu of Taxation Budget, due to one-time provincial funding.

Overall, when the city looks at the tax-supported services and the budgets for Ottawa Police, Ottawa Public Health, the Ottawa Public Library and OC Transpo, it ended the year with a $33,000 surplus.

Staff say COVID-19 added $64 million in cost pressures to the city, including at OC Transpo and Ottawa Public Health.  Costs included enhanced cleaning, personal protective equipment, required retrofits and equipment and revenue reductions primarily for transit.

A total of $44.856 million in funding was received from the upper levels of government to offset the deficit.

OC Transpo reported a $29 million budget deficit, Ottawa Police Service posted a $6 million surplus and the Ottawa Public Library posted a $1.8 million surplus in 2023.