Is Sutcliffe's 2.9% tax hike right for Ottawa?
This should be a vigorous budget debate based on financial reality in Ottawa, not on fulfilling election promises.
Mohammed Adam, Ottawa Citizen
Published Sep 19, 2024 • Last updated 3 hours ago • 3 minute read
Ahead of budget 2025 deliberations, Mayor Mark Sutcliffe has warned about property tax increases, massive transit fare hikes and service cuts the likes of which the city hasn’t seen in decades.
In its budget directions, released Monday and approved Wednesday, we learned that property tax increases could be 2.9 per cent, transit levy hikes between 2.9 and 37 per cent, and fare increases between 2.5 and 75 per cent. Worst case: a single ride on OC Transpo could cost $6.65, up from $3.80. A monthly pass could go from $128 to $225. All this is because of a lack of federal and provincial funding that has left OC Transpo with a $120-million deficit.
It is all very dramatic, and it sounds a tad apocalyptic. Sutcliffe wants you to blame federal and provincial governments. He takes this shot at his critics: “The people advocating for big tax increases are basically saying it’s okay for the transit projects in the GTA to get 100 per cent funding from other levels of government while we pay over half in Ottawa.”
No, Mr. Mayor, no one is saying that. Ottawa residents know and resent the fact that when it comes to transit, the city has been shafted for years. It is disingenuous to suggest otherwise. Besides, nobody wants higher taxes. Trust me, I’d rather pay 0.1 per cent than 2.9 per cent. But if you want to build a livable city, you need appropriate services to match the ambition, such as transit that is reliable and affordable, recreational services that meet everyday pocketbooks, and roads that are not littered with potholes.
What many people want is not higher taxes, but a balanced budget with reasonable property tax increases that allow us to maintain city-building services. Indeed, knowing from the very beginning that a budget crunch was coming, the city could have spread tax increases a bit higher over the last two years to put us in a better position to deal with what lies ahead.
While Sutcliffe is right to feel aggrieved about transit funding, it is worth noting that when he had a chance to negotiate a deal with Ontario, transit did not seem to be his top priority.
The 10-year, $543-million deal for Ottawa that Premier Doug Ford announced in March, was more about roads than transit. The deal, which Sutcliffe hailed as a “big win for Ottawa,” included the uploading of Hwy. 174, which then-Ontario premier Mike Harris dumped on Ottawa in 1997. The funding included money for housing, repairs and upgrading of major connecting and rural roads, as well as a new interchange at Hwy. 416 and Barnsdale Road.
The only nod to transit was $80 million for the Kanata North Transitway, contingent on matching funds from the federal government.
Here is a city that’s facing a big transit deficit, and yet when he had the premier’s ear, Sutcliffe, as best we can tell, negotiated money largely for roads, not his biggest need. Sutcliffe made his deal, and it is now too late to complain. One can only hope for some funding from provincial and federal governments.
Of course, no matter what, we are not going to see taxes rise steeply, or a 75 per cent transit fare increase. That’s a bluff. Still, the question is whether Sutcliffe’s 2.9 per cent is right for the times. This should be a vigorous budget debate based on financial reality, not on fulfilling election promises.
And this time, Ottawa residents should accept Sutcliffe’s invitation to make their voices heard on what they really want.
Then we will see what councillors are made of as they craft the budget.
Mohammed Adam is an Ottawa journalist and commentator. Reach him at nylamiles48@gmail.com
https://ottawacitizen.com/opinion/ad...ght-for-ottawa