Five things to watch for as the city of Ottawa tables the 2022 budget this week

OTTAWA -

Ottawa residents will find out this week how the city will spend their tax dollars next year, as the 2022 operating and capital budgets are released.

Council directed staff to draft the 2022 budget with a three-per-cent hike in property taxes, along with increases in transit fares, garbage fees, user fees and water and sewer rates.

Staff will table the 2022 budget during Wednesday's Council meeting. 

The $4 billion budget will outline how the city will spend money on roads and sidewalks, transit, garbage and recycling, infrastructure, affordable housing, drinking water, wastewater and storm water services and other tax-supported programs.

A three-per-cent tax hike would cost the average urban homeowner an extra $119 in 2022, while rural homeowners would see their tax bill go up $91.  

The 2021 budget included a three-per-cent tax increase, plus a 2.5 per cent hike in transit fares.

CTVNewsOttawa.ca looks at five things to watch as the city of Ottawa unveils its 2022 operating and capital budgets this week.

OTTAWA POLICE BUDGET

The Ottawa Police Service budget will be tabled Wednesday morning, amid calls from some councillors and the public to freeze or reduce spending.

The Ottawa Police Services Board directed staff to draft the operating budget that "assumes a zero per cent increase as its base." Staff will need to provide a detailed explanation for any additional spending, including money to cover new collective bargaining agreements.

Last week, the service and the Ottawa Police Association announced a new five-year contract agreement, with an approximate two per cent increase each year.

In July, a report for the Ottawa Police Services Board warned a budget freeze in 2022 would result in the elimination of 140 officers, longer response times and the suspension of all recruiting, hiring and promotions. Staff said a zero per cent increase in the Ottawa Police levy on the property tax bill would result in a $13.5 million deficit.

TRANSIT FARES

Transit riders will learn about a proposed hike in transit fares at the same time the O-Train has been out of service for seven weeks following a derailment.

The 2022 budget is being drafted with a 2.5 per cent hike in transit fares.

OC Transpo already has one of the most expensive adult monthly bus passes in Canada, at $122.50.

There will also be a 4.5 per cent hike in the transit levy on property tax bills, which includes a $5 million increase to the contribution to replace the cancelled provincial gas tax increase.

SOARING CONSTRUCTION COSTS

It's costing more to build things in Ottawa and across Canada due to the COVID-19 pandemic, which will have an impact on the city's plans for infrastructure and construction projects.

This summer, staff said the 2022 budget will be built with a 3.7 per cent increase for municipal construction inflation.

Last week, council approved spending an additional $65 million for the new super library between the Ottawa Public Library and Library and Archives Canada.

Staff noted construction costs for the new library at LeBreton Flats have inflated by 65 per cent, saying "Canada is experiencing a significant increase in construction costs due to COVID-19." The city said material shortages, supply chain slowdowns and labour implications are driving up costs.

The spike in gas prices will also impact the city of Ottawa's budget.

WINTER OPERATIONS

With Ottawa and Ontario expected to be hit by an early and snowy start to winter, all eyes will be on the city of Ottawa's winter operations budget.

2020 was the first time in many years the city ended the year with a surplus in its winter operations budget. There was a $3.1 million surplus in the $78 winter maintenance operations budget last year.

The city has already promised a more aggressive and proactive approach to snow and ice storms this winter, trying to minimize the snow and ice build up on residential streets and sidewalks.

Workers clear 13,000 kilometres of roads and 2,400 kilometres of sidewalks and pathways.  The city of Ottawa has 535 winter maintenance operators and 575 pieces of equipment.

COVID-19 BUDGET PRESSURES

After provincial and federal funding helped keep the city of Ottawa afloat during the COVID-19 pandemic, the city is assuming grants will not continue into 2022.

The draft budget will include estimated post COVID-19 pressures, along with mitigation measures to deal with any funding shortfalls. Staff say mitigation measures could include using city of Ottawa reserves, deferred capital spending and one-time reductions in expenditures.

In July, the city of Ottawa was projecting an $8 million surplus, thanks to federal and provincial funding covering costs associated with the pandemic.  The city received $135 million in funding from the Safe Restart Agreement, Social Services Relief Fund and other funding from senior levels of government.

CITY OF OTTAWA BUDGET RELEASE SCHEDULE

Monday: Ottawa Public Health budget at 5 p.m.

Tuesday: Ottawa Public Library budget at 5 p.m.

Wednesday: Ottawa Police Services budget at 8:30 a.m.

City Council – full 2022 city of Ottawa budget released – 10 a.m.

Ottawa Transit Commission meeting – 2022 transit budget – 11 a.m.