'I found a hole in your budget': McKenney and Sutcliffe spar over campaign finances in CTV Ottawa debate

Catherine McKenney and Mark Sutcliffe sparred about campaign spending plans for the city of Ottawa during the CTV News Ottawa mayoral debate.

"I've actually looked through your budget quite carefully and it has a significant hole in it," McKenney said during the debate. "When you calculated for inflation, you, in fact, left it off half the city budget. You know that this leaves a multi-million dollar hole in your plan, correct?"

"There are no holes in my plan," Sutcliffe said. "Catherine McKenney's plan is to take $90 million out of our reserves; those are emergency funds that should be there in the future…..We're breaking the piggy bank."

McKenney, Sutcliffe and Bob Chiarelli took part in the hour-long debate on CTV News at Six, discussing affordable housing, taxes, transit and transportation and other issues during the 2022 municipal election.

McKenney, the two-term councillor in Somerset Ward, says Sutcliffe's financial plan released last week accounted for inflation on less than half of the city's operating and capital budgets, instead of all of it.

"I found a hole in your budget," McKenney said, as Sutcliffe refuted the allegation during a back-and-forth on taxes.

McKenney's campaign notes Sutcliffe's plan outlines $75 million to $100 million in inflation pressures at 3.5 per cent rate, but claims that does not account for the full $5 billion city of Ottawa budget.

"Sutcliffe’s plan only accounts for inflation on spending funded through property taxes — but not on spending funded by other sources like user fees. This leaves a hole representing tens of millions of dollars," McKenney's campaign said in a statement after the debate.

"You did leave inflation off half your budget; you're missing tens of millions of dollars," McKenney said during the debate on CTV News Ottawa. "You accounted for inflation on property taxes but not on the rest of the budget, it just doesn't add up. This could leave a multi-million dollar hole in your budget that you'll need to fill with more cuts or higher fees. Being mayor is not an entry-level job."

"The budget adds up," Sutcliffe said. "There are holes in your budget too Catherine, and there's also $650 million in new spending in your budget, including a quarter-of-a-billion dollars on bike lanes. Those just aren't the priorities of the people of Ottawa right now."

In a statement after the debate, Sutcliffe's campaign said its financial plan "focuses on how budget pressures impact the property taxpayer", adding government grants rise with inflation and user fees are "normally adjusted for inflation and growth."

"Going into 2023, the total budget pressures from inflation and growth are the same for Mark Sutcliffe as they are for Catherine McKenney," the campaign said Thursday evening.

"Catherine McKenney’s debate night stunt attempts to distract voters from a $650M spending spree. Their plan will raid the city’s reserves, jack up city debt, and would hike taxes beyond their stated 3 per cent commitment."

McKenney has promised to cap property tax increases to three per cent a year, while the financial plan outlined using $90 million in excess reserves to accommodate inflationary pressures and support new priorities. 

Sutcliffe has stated he will limit property tax increases to 2 to 2.5 per cent in 2023 and 2024, and find $35 million in efficiences.

EXPERIENCE

Sutcliffe faced attacks from both McKenney and Chiarelli on his lack of experience in politics during the debate.

"The city is in crisis and needs solid, competent, experienced leadership to solve our serious problems. This is no time for residents to trust a person with a learner's permit, I will rebuild that trust," Chiarelli said.

During the debate, McKenney noted that with several new councillors set to be elected on Oct. 24, experience is important.

"It's a great opportunity to bring new vision and new ideas to the table, but you also need somebody who's experienced, understands the city budget," McKenney said.

The debate allowed candidates to ask questions to each other. In a bid to highlight Sutcliffe's lack of political experience, Chiarelli asked him about the largest budget he has had to manage during his life.

"I have a lot of experience as an entrepreneur, a business owner; I have been on the boards of a dozen different organizations in Ottawa in the private sector, in the public sector. I know how to balance a budget, I know how to manage people, I know how to get everybody working together to accomplish some goals together and that's the experience that I'm going to bring to Ottawa City Hall," Sutcliffe said.

"I’m the only candidate here who actually represents change. Bob Chiarelli and Catherine McKenney, in one form or another, have been at Ottawa City Hall or in politics for 25 years."

SPENDING PLANS

Both McKenney and Sutcliffe were on the defensive over their visions and spending plans for the city of Ottawa if elected.

"Mark, this is what you're looking at; super challenging financial statements, a dysfunctional LRT system, a dysfunctional bus service, a disaster of a road system, a remake of downtown, the start of LeBreton Flats projects – there's no way you'll find funding for all your Pollyanna projects," Chiarelli said during the debate.

Chiarelli has promised to freeze taxes for the first year, if elected, and conduct a 100-day review of city spending. He would also cancel road widening projects that haven't started.

Sutcliffe has promised to freeze transit fares for 2023, reduce recreation fees for children and families by 10 per cent, spend $25 million a year over four years on road repairs and snow clearing, increased police presence in the ByWard Market and $4 million in annual funding for community services agencies. Sutcliffe has also promised a strategic review for all city spending, looking to find $35 million in savings.

McKenney's campaign platform includes a transit fare freeze, free transit for youth under the ages of 17, increasing transit operations by 20 per cent, make Ottawa net-zero by 2050, secure $119 million in federal funding for housing and active transportation, borrow $65 million to make municipal buildings more energy efficient, and invest $250 million into cycling infrastructure using green bonds.

"Ottawa does have a clear choice between deeper cuts to our city budget or making investments in the services that build a better city," McKenney said. "My approach to taxes is to maintain the current three per cent property tax approach. I know that people are feeling that pinch, so we've got to invest in the services in your city that make life more affordable for you."

McKenney's campaign has said Sutcliffe would cut $80 million from city services if elected mayor.

"As Catherine said, there is a very clear choice in this election campaign. Catherine has a big spending agenda at a time when we can't afford it," Sutcliffe said. "It's about adding $650 million in expenses to the city over the next few years including for bike lanes, it's about raiding reserves which we should be saving for emergencies, it's about increasing borrowing at a time when interest rates are climbing.

"I have a plan that is actually much more fiscally responsible. The word I would use… is respect. I respect your hard-earned dollars, the dollars that you're investing in your city for which you want services in return."

McKenney noted Mayor Jim Watson moved off a two per cent tax hike target during his 12 years as mayor.

"Even Jim Watson knew - two per cent property tax increase means cuts."

A Nanos Research poll for CTV News Ottawa showed McKenney has a five-point lead over Sutcliffe.  Twenty-nine per cent of respondents said they would vote for McKenney, compared to 24 per cent for Sutcliffe and nine per cent for Chiarelli. The poll showed 35 per cent of respondents were undecided.

The debate comes ahead of the final Advance Voting Day on Friday and Voting Day on Oct. 24.

Respondents to the Nanos Research poll listed improving OC Transpo reliability as the most important priority for the new mayor, followed by managing the cost of living and fixing roads.  Experience in municipal politics, spending more money on policing and more bike lanes ranked as the least important priorities for voters.

ANALYSIS

Graham Richardson, Newstalk 580 CFRA's Kristy Cameron and Algonquin College professor Jon Willing recap the CTV News Ottawa mayoral debate.