Ottawa receiving $63.3 million to help cover OC Transpo operating deficit

An OC Transpo bus at the Eagleson Park and Ride. (Dave Charbonneau/CTV News Ottawa)

The Ontario government is delivering an early Christmas present to the city of Ottawa to help cover some of its $85.5 million transit deficit.

Ottawa will receive $63.3 million in funding for the municipal transit system under Phase 4 of the federal-provincial Safer Restart Agreement.

The funding will address costs related to the COVID-19 pandemic between Feb. 1 and Dec. 31, and municipalities can use the funding to cover revenue losses, operating expenses, and provincial transit projects.

"The City of Ottawa thanks the provincial and federal governments for this much-needed funding," Mayor Mark Sutcliffe said in a statement released by the province.

"This funding is an important step towards supporting OC Transpo’s ongoing operational needs as we remain committed to providing vitally-needed transit services to our communities."

In September, OC Transpo was forecasting a budget deficit of $85.5 million for 2022, as ridership has yet to recover to pre-pandemic levels.

Interim City Manager Wendy Stephanson says the provincial-federal funding will help cover the OC Transpo revenue shortfall, but the city is still facing a multi-million dollar transit budget deficit.

"At this point, we will address the budget shortfall through the transit operating reserves," Stephanson said.

"We have heard that if funds are returned, so if other municipalities don't require them, we'll have the opportunity to apply for additional funds."

Staff blamed the COVID-19 pandemic and the 'Freedom Convoy' protest in January and February for the loss of fare revenue.

The city is also seeking to recover the cost of the convoy from Public Safety Canada under the Nation's Capital Extraordinary Policing Cost program.

Eastern Ontario municipalities receiving funding under the Safe Restart Agreement

• Brockville $40,233
• Cornwall $410,901
• Kingston $2,343,836
• Lanark County $25,788
• North Grenville $7,207
• Pembroke $7,354
• Renfrew $48,815