OC Transpo's finances worse than imagined: Sutcliffe
Ottawa Mayor Mark Sutcliffe says OC Transpo is facing a "worsening financial situation" that is worse than he imagined when he decided to run for mayor.
Sutcliffe ran on a platform of fixing public transit in Ottawa, after numerous issues on the LRT and flagging ridership because of the COVID-19 pandemic.
City councillors received a technical briefing on the transit system's long-term plan on Monday, which projected a dire outlook of $6.6 billion in budgetary pressures over the next 25 years, more than half of which is linked to lower ridership.
It also means the future of Stage 3 of LRT to Kanata, Barrhaven and Stittsville could be in jeopardy, though Sutcliffe says he believes it will eventually be built.
Councillors heard that the financial case for Stage 3 is not strong. First, it is unaffordable for the city, and would need to be funded 100 per cent by senior levels of government, who have not committed any funding to it. Second, Stage 3 would cost an estimated $64 million per year to operate, with only an expected 2 per cent increase in ridership, bringing in around $5 million annually. Savings from replacing bus routes would also be minimal, staff said.
Construction on Stage 3 was set to begin once Stage 2—which is delayed—was complete, but staff said Monday that the city could delay Stage 3 until the financial situation stabilizes, only build parts of it—such as only connecting to Kanata or only to Barrhaven—or scrap it all together and run bus rapid transit instead.
Speaking to reporters after the technical briefing, Sutcliffe said Stage 3 remains an important part of the city's long-term transit plan.
"I still believe that we can deliver Phase 3 to the residents of Barrhaven, Stittsville and Kanata. I think it's an important part of the system and our population is going to grow significantly over the next 25 years. We know that," Sutcliffe said. "We're not ready to push the button on Phase 3 this week anyway. We have a lot of work to do before we get to a point about making a decision about Phase 3, so we have to do that work and we have to have those important conversations with other levels of government because we were always counting on those other levels of government to pay the cost of Phase 3 anyway."
To date, the city has not signed any agreements with other levels of government or any private sector partners when it comes to Stage 3.
"As such, any decision regarding the future of Ottawa’s light rail network would not have any associated financial penalties," deputy treasurer Isabelle Jasmin said in a statement to CTV News Ottawa.
Sutcliffe said that Stage 3 might be unaffordable now, but there are numerous decisions the city can make in the next 10 years to improve OC Transpo's long-term finances.
"I don't think it's one conversation that's going to happen and we make a bunch of decisions and then we're done," he said. "I think the job we have in front of us has not actually changed that much… We have to fix Phase 1 of light rail; we have to make sure Phase 2 is introduced smoothly and effectively and that it's working; we have to improve our bus system so that it's serving residents in the areas where they need it and not where they don't; we have to make difficult decisions about how we pay for public transit… All of the decisions we make over the next 10 years will change the picture for the next 25 years."
Sutcliffe said he is confident the 2024 budget would still cap the transit levy increase at 2.5 per cent and he's looking at solutions that don't include increasing it.
Mayor calls for more government support
Sutcliffe renewed calls for support from the federal and provincial governments.
OC Transpo's 2023 budget included a $39-million hole that staff expected would be filled by upper levels of government, as it had in previous years during the COVID-19 pandemic, but no extra funding was announced in the federal and provincial budgets for this year.
Speaking to reporters, Sutcliffe said Ottawa should be recognized as a unique case for extra help.
"I think Ottawa is justified in asking for help because of the unique circumstances of being the nation's capital," Sutcliffe said.
"Federal government decisions have had an impact on transit ridership in Ottawa and, frankly, the future of downtown. We have a federal government that is talking about moving out of many of its downtown buildings, which is going to present a significant challenge for us as a community... I respect those decisions, those are their decisions to make, but there are consequences at the municipal level.
"Similarly, I would say we have a conversation that we're having with the provincial government because we don't get the same deal as Toronto and other cities in the GTA when it comes to funding transit operations and maintenance and life cycle. The provincial government pays for a lot more of that in other municipalities than it does in Ottawa and that's got to change in the future."
Premier Doug Ford has previously said he would not commit any provincial funding to Stage 3 of LRT until the issues with Stage 1 are sorted.
Staff presentation
CTVNews.ca Top Stories
Stormy Daniels describes meeting Trump during occasionally graphic testimony in hush money trial
Stormy Daniels took the witness stand Tuesday at Donald Trump's hush money trial, describing for jurors a sexual encounter the porn actor says she had with him in 2006 that resulted in her being paid off to keep silent during the presidential race 10 years later.
Indian envoy warns of 'big red line,' days after charges laid in Nijjar case
India's envoy to Canada insists relations between the two countries are positive overall, despite what he describes as 'a lot of noise.'
Susan Buckner, who played spirited cheerleader Patty Simcox in 'Grease,' dead at 72
Susan Buckner, best known for playing peppy Rydell High School cheerleader Patty Simcox in the 1978 classic movie musical 'Grease,' has died. She was 72.
Former homicide detective explains how police will investigate shooting outside Drake's Bridle Path mansion
Footage from dozens of security cameras in the area of Drake’s Bridle Path mansion could be the key to identifying the suspect responsible for shooting and seriously injuring a security guard outside the rapper’s sprawling home early Tuesday morning, a former Toronto homicide detective says.
Jeremy Skibicki has 'uphill battle' to prove he's not criminally responsible in Winnipeg killings: legal analysts
Accused killer Jeremy Skibicki could have a challenging time convincing a judge that he is not criminally responsible for the deaths of four Indigenous women, a legal analyst says.
Alcohol believed to be a factor in boating incident after 2 men die: N.S. RCMP
Two Nova Scotia men are dead after a boat they were travelling in sank in the Annapolis River in Granville Centre, N.S., on Monday.
Bye-bye bag fee: Calgary repeals single-use bylaw
A Calgary bylaw requiring businesses to charge a minimum bag fee and only provide single-use items when requested has officially been tossed.
CFL suspends Argos QB Chad Kelly at least nine games following investigation
The CFL suspended Toronto Argonauts quarterback Chad Kelly for at least nine regular-season games Tuesday following its investigation into a lawsuit filed by a former strength-and-conditioning coach against both the player and club.
Air France flight from Paris to Seattle lands in Iqaluit after heat smell in cabin
A plane travelling from Paris to Seattle was forced to make an emergency landing in Iqaluit after there was a heat smell in the cabin during the flight.