City of Ottawa to table 2025 draft budget Wednesday

A gavel is seen on a desk inside Ottawa's city council chamber in this undated file image. (CTV News Ottawa)

Ottawa residents will get a better sense of how their municipal taxes will be spent next year as city staff table the draft 2025 City of Ottawa budget on Wednesday.

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Under proposed budget directions approved in September, staff will draft a budget with a 2.9 per cent property tax increase to cover a variety of city services and the Ottawa police levy. 

If approved, a 2.9 per cent property tax hike would add $125 to the average urban property tax bill. The average commercial property owner would pay an additional $268 in 2025.

That amount does not include funding to address a $120 million hole left in the transit budget as OC Transpo grapples with low ridership numbers leftover from the COVID-19 pandemic. Ottawa Mayor Mark Sutcliffe and councillors have been asking the federal and provincial governments to provide $140 million a year over three years for transit to help cover the shortfall.

Without that funding, staff say the city may have to increase the transit levy, hike fares, adjust fare discounts or consider operating deficiencies and service reductions.

A 37 per cent increase in the transit levy would be the equivalent of a 7 per cent hike in property taxes, which would see homeowners facing a 9.9 per cent tax hike in 2025.

Councillors approved a $5.8 billion budget for the city in 2024, which included a 2.5 per cent increase to property taxes, a 2.5 per cent fare hike and a 2.5 per cent increase to the Ottawa Police Service budget.

Some community groups have urged the city to consider other revenue raising tools, including raising property taxes and parking fees. The groups are seeking expanded funding for public transit and affordable housing.

Other Canadian cities have faced significant tax hikes in 2024, including Toronto: 9.5 per cent, Vancouver: 7.5 per cent, Edmonton: 8.9 per cent and Calgary: 7.8 per cent.

Sutcliffe has defended keeping property taxes low, citing an election promise when he ran for mayor.

Councillors will discuss and debate the draft budget on Wednesday and during committee meetings over the next three weeks before its final approval on Dec. 11.