Wednesday was budget day at City Hall after committees and city staff spent the last four weeks reviewing and amending the draft budget. And while the 2025 budget is a hefty document, transit is top of mind — at least it was for Mayor Mark Sutcliffe, who began the meeting by remarking on the budget’s “historic” investment in public transit, which is seeing an 11 per cent increase.
The city’s 2025 capital budget comes in at $1.68 billion, while the net operating budget is $4.98 billion. This marks a slight increase from the 2024 budget, which had a capital budget of $1.24 billion and a $4.6 billion operating budget.
This year’s budget includes a 2.9 per cent property tax increase and an eight per cent hike in the transit levy for most ratepayers. This means most ratepayers will be faced with a 3.9 per cent tax increase. Financial officer Cyril Rogers said the city found $54.2 million in savings and efficiencies, which were in turn reallocated for programs and services for residents.
The budget involves substantial investments in public transit, but requires an increase in transit fares and includes a $36 million gap in funding that the municipality hopes will be filled by upper levels of government.
The capital budget is largely funded by property taxes (44.5 per cent), financial support from federal and provincial governments (22.7 per cent) and city fees and service charges (22.5 per cent).
The draft budget was presented by Rogers on Nov. 13 and planned some changes to transit fares, including passes for seniors and youth, that have faced backlash in the community.
“There’s one part of this process that still leaves me a little bit frustrated. And that’s the fact that I think we’ve been having the wrong conversation over the past month,” Sutcliffe said in his opening remarks. “We’ve been talking about the contributions our residents make to public transit. What’s the right level for the transit levy? What’s the right adult fare? How large a discount should we offer students, youth, and seniors?
“What we should be talking about is how the provincial and federal governments are still not paying their fair share,” he continued. “Our focus must continue to be the systemic and structural changes we need to make, and that includes sustainable funding from other levels of government, the funding they provide to other cities like Toronto and Hamilton.”
The meeting was in session from 10 a.m. until just after 7 p.m. as councillors asked questions to staff and delegates regarding the capital and operating budgets for the first seven hours before proceeding to usual council matters.
In the end, College Ward Coun. Laine Johnson opposed the budget, arguing that the City is not doing enough to ensure affordability for Ottawa residents.
“I will expect better next year,” she told staff and council.
“I have a different definition of affordability perhaps than some around this table,” added Kitchissippi Coun. Jeff Leiper, who also dissented on the budget. He argued that affordability goes beyond taxes and involves municipal infrastructure than can lead to more affordable lifestyles, including active transportation options.
Other councillors spoke in support of the budget, including River Ward Coun. Riley Brockington, who said it was a “solid” budget.
The budget was passed, with amendments, with three councillors opposed: Johnson, Kitchissippi Coun. Jeff Lieper, and Knoxdale-Merivale Coun. Sean Devine.
Speaking to media after the vote, Sutcliffe said it was a “very good outcome given the financial pressures we’ve been facing.”
He then said the City would not be able to “sustain” services to residents without substantial financial support from other levels of government.
“The province and the federal government have been investing in public transit in places like Toronto and Hamilton and Mississauga and Brampton in ways they have not invested in Ottawa,” said Sutcliffe. “We deserve the same level of support as other Ontario cities, and I believe we will get investment from other levels of government.”
Here are the highlights of the budget for 2025, including some of the amendments that were made during Wednesday’s meeting. Transit was the biggest tension point, with most of the other budgets being passed quite efficiently and smoothly “without much confrontation,” Sutcliffe said. The transit budget held up the council for a few hours.
Transit
The upcoming year will see a $856-million budget for OC Transpo and Para Transpo, an increase of 11.4 per cent from 2024 to support the light rail transit system (LRT), Para Transpo and the bus system. That’s an increase of $88 million into the transit agency.
Coun. Tim Tierney (Beacon Hill-Cyrville) tabled a motion adjusting the transit budget to support equitable transit, including among seniors and youth, by maintaining free transit programs on Wednesdays and Sundays. The motion requests involved keeping the senior monthly pass fare at $49 and adjusted to $58.25 in February, approving a 5 per cent increase to the youth monthly pass and delaying the plan to eliminate the pass until September, and delaying the increase of 5 per cent to the U-Pass until September. The motion also directed staff to work with community stakeholders and examine options for equitable transit fare structures.
The measures come at a total cost to the budget of $5.909 million, and the motion suggested steps to offset this cost.
Somerset Coun. Troster supported the motion, but dissented on the 2025 Transit Commission budget overall.
“I don’t think we’re providing a service that is worth a fare increase,” said Somerset Coun. Troster. “I fundamentally believe we should be sharing the load.”
Troster said she would prefer that the transit levy carry the weight rather than share it with fare increases.
The motion was carried and the budget was approved, as amended, with seven councillors dissenting: Laine Johnson (College), Sean Devine (Knoxdale-Merivale), Rawlson King (Rideau-Rockcliffe), Troster, Riley Brockington (River), Shawn Menard (Capital), and Wilson Lo (Barrhaven East).
Police Board
The Ottawa Police Service Board budget was passed without amendments, but five councillors voted against: College Ward Coun. Laine Johnson, Bay Ward Coun. Theresa Kavanagh, Rideau-Rockcliffe Ward Coun. Rawlson King, Capital Ward Coun. Sean Menard and Kitchissippi Ward Coun. Jeff Lieper.
Also at the meeting:
City council has approved the ongoing design and development of a concept plan for a community hub, including parks, recreation facilities, housing and a new school, planned for Little Italy.
At a council meeting on Wednesday, councillors reviewed a report from city staff to advance the 930 and 1010 Somerset Development Project and approved the concept plan and land use recommendations.
In 2017, Ottawa Community Housing (OCH) purchased a vacant site at 933 Gladstone Ave. from Public Service Procurement Canada (PSPC) for development into a mixed-use residential community, which recently broke ground.
In March 2021, council approved the purchase of a nearby parcel of land at 1010 Somerset St. as part of the community-building efforts. The concept is planned in conjunction with the existing community resources at the Plant Recreation Centre at 930 Somerset St.. and prioritizes the following facilities: an expansion of the Plant Recreation Centre; a new recreation and cultural facility; a new public park; an elementary school; affordable housing; market housing; and, district energy.
City staff have identified approximately 0.68 acres for the new Louise Arbour Elementary School and approximately 1.7 acres for future private-sector development. These two parcels of land are not tied to city development, according to the report, and can be sold as the hub advances. Council approved that the parcels be listed as surplus and the funds from their sale be allocated towards furthering the concept plan.
Revenue from the school parcel isn’t expected to be reflected in the project until the first quarter of 2026, so the project requires additional investment. Council approved a budget of $1,235,000 to keep the project moving.
West end Health Hub
Stittsville Coun. Glen Gower tabled a motion directing staff to work with the Kanata-Stittsville Family Health Team to determine whether municipal land can be made available for health care use.
The motion, seconded by Mayor Mark Sutcliffe, requests that staff examine whether a portion of the municipal land at 1655 Maple Grove Rd. in Stittsville can be used to create a “Health Hub” and whether other municipal health and social services can benefit from joining the Hub.
Staff were directed to report to the Finance and Corporate Services Committee by Q2 2025 and a copy of the motion was circulated to the Ontario Minister of Health.
