Ottawa proposes three per cent hike in property taxes in 2022, three per cent increase in police budget

OTTAWA -

The city of Ottawa is eyeing a three per cent increase in funding for Ottawa police, a three per cent property tax hike and a 2.5 per cent increase in transit fares in 2022.

The finance and economic committee will discuss the 2022 budget directions, timeline and consultation process on July 6, including recommending tax increases to cover the cost of operating city services.

Staff recommend the municipal tax increase be set at three per cent overall for 2022, including the Ottawa Police Services levy increasing by no more than three per cent. If approved, council would direct the Ottawa Police Service to develop their budget based on the three per cent increase.

A three per cent increase in the police levy on the property tax bill would cost the average urban homeowner an extra $19 a year.

Earlier this year, Ottawa police paused "recruitment for new hires" due to budget constraints and in anticipation of directions for the 2022 police budget. In July, staff will present three Ottawa police budget scenarios for 2022: a spending freeze, a 1.5 per cent increase and a three per cent increase in spending.

The Ottawa Police Services Board passed its 2021 budget in late November with a $13.2 million funding increase. Dozens of community members and organizations called on the board and Council to scrap the planned increase in funding.

In a statement on Twitter, Horizon Ottawa said, "After over a year of protests in Ottawa, after literally thousands of residents spoke out at public meetings and after the Ottawa Police Services Board said they would consider freezing the police budget in 2022 – the OPS are again slated to get a three per cent budget increase."

"This is a direct affront to marginalized residents in Ottawa who put themselves on the line to advocate for a safer city and community," said the grassroots organization.

COVID-19 PUTS PRESSURE ON OTTAWA BUDGET

The report for the finance and economic development committee recommends drafting the 2022 budget with a three per cent overall tax increase. The city-wide levy, which includes funding for the Ottawa Public Library and Ottawa Public Health, would increase by no more than 2.6 per cent.

The Transit Levy would increase by no more than 4.5 per cent, and would include a $5 million increase to the contribution to the capital transit budget.

The report says staff completed a preliminary review to identify 2022 budget pressures, including changes to the Labour Code, employee salaries and the cost of operating and maintaining new infrastructure such as roads and winter maintenance costs, continued investment in long-term care and affordable housing and supporting capital assets.

"Based on this preliminary analysis, a three per cent overall tax increase is being proposed," said the report.

City staff say the 2022 budget will outline estimated post COVID-19 financial pressures, and include mitigation measures to cover possible funding and revenue shortfalls, including the use of city reserves, possible reductions in service levels and various additional mitigation measures.

"In 2020 and 2021, COVID-19 resulted in significant financial challenges for the city, challenges never faced before," said the report.

"While the city implemented financial mitigations to close the gaps for 2020 and 2021, funding was received from senior levels of government to fund the COVID deficits through the Safe Restart Agreement and other government funding. In 2022, the city is not anticipating funding from senior levels of government."

Transit fares will also increase another 2.5 per cent next year.

If council approves the three per cent increase in property taxes in 2022, along with the three per cent hike in police spending, the average property tax bill would increase $119 in 2022. Rural homeowners would pay an extra $91.

The Ottawa 2022 draft budget will be tabled on Nov. 3.