The City of Ottawa is $1 billion in the hole when it comes to infrastructure repairs.

Even with the debt load, council has decided to spend a chunk of provincial money intended for infrastructure on the city's multi-million dollar snow removal bill.

The McGuinty government is giving the City of Ottawa $14.6 million to help with road and bridge maintenance.

"The money has been given, you know, for roads and bridges and infrastructure. I wish that the city would use it for that but it's their decision," Madeleine Meilleur, Ontario's minister of community services, told CTV News.

Council, however, has decided to spend the provincial cash on snow removal to offset what could have been a massive tax increase for Ottawa residents.

Decision not unanimous

Although the decision passed, it didn't pass without a fight from some city councillors.

"This money was given to us by the provincial government to be used for that kind of infrastructure, the repairs, that we badly, badly need," Coun. Peggy Feltmate said during council deliberations.

"He can't do this through the back door. He can't do this by taking the money from the province and saying we're going to apply it against the tax levy," Coun. Alex Cullen said.

Your tax bill

The property tax increase now sits at 4.9 per cent, lower than the 7.7 per cent tax hike city staff recommended on Wednesday.

The tax increase means the average household will pay $125 more than expected on this year's tax bill.

With little room left in the books to absorb any other unexpected costs, council will likely face another challenging budget discussion in 2009.

With a report from CTV's Natalie Pierosara

Have your say. Leave a comment below.