City of Ottawa expecting to end 2024 with a budget surplus

Ottawa City Hall is seen in this undated file photo. (CTV News Ottawa)

The City of Ottawa posted a $10.4 million surplus in the first six months of the year, thanks to staffing vacancies, higher water consumption by residents and lower winter maintenance costs.

A report for the finance and corporate services committee on the city's finances for this year shows the city is projecting a $5.8 million surplus in tax-supported programs by the end of 2024.  The projected surplus does not include the Ottawa Police Services Board and the Ottawa Public Library, or the OC Transpo budget, which is projecting a $25.6 million deficit this year due to lower ridership on buses and the O-Train.

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Staff say the city posted a $7.8 million surplus in the tax-supported program areas in the January to June period, and a $2.6 million surplus in the water and wastewater services department.

"The tax-supported component of the city's budget ended Q2 with a surplus mainly due to staffing vacancy savings and investment income growth due to higher interest rates," the report says.

The Public Works department posted the largest deficit of all departments at Ottawa City Hall in the first six months of the year at $4.2 million. Staff say the deficit is "mainly driven" by Traffic Services and a $5.7 million shortfall due to the delayed installation of five photo radar cameras, the delayed implementation of an Ottawa Processing Centre for camera-based tickets and an increased compliance with speed limits.

Road Services is forecasting a $400,000 surplus due to lower expenditures in winter maintenance because of the "milder first half of the 2024 winter season.  The first-quarter financial report in May showed Road Services posted a $4.8 million surplus in the January-March period due to lower winter maintenance on roads, sidewalks and pathways.

Ottawa's Planning, Development and Building Services department posted a $3.25 million deficit in the first six months of the year due to lower volumes in Planning Applications and Building Permits, according to staff.

Savings were found through strategic initiatives due to vacancies and savings on purchased services, an increase in investment income and growth in tax and water billing fees.

The report shows the city is projecting a $5.8 million surplus by the end of 2024.