Ottawa residents will see a two-per-cent increase in residential taxes this year, according to the 2015 draft city budget released Wednesday.
The increases are the lowest in eight years, in keeping with the city’s goal to maintain an “affordable city,” said Mayor Jim Watson.
“I think we’ve struck the right balance, because we know there are many living close to the line,” Watson said at the budget council meeting, “those who may have unstable or no employment for whom raising taxes significantly could mean the difference between affording their next mortgage payment or affording food for their kids.”
Taxes for commercial properties will increase by 1.37 per cent, which averages to a 1.75-per-cent overall revenue increase for the city.
The budget proposes a maximum yearly increase of two per cent on recreation fees, the first in four years.
City garbage fees, however, will remain frozen at $82 per household.
In the coming months, council will also develop a “city strategic plan” for the four-year term of council. Since this plan will be developed after the budget is finalized, a total of $37.4 million has been set aside for these initiatives.
Somerset Ward Coun. Catherine McKenney says the priority for Centretown will be funding agencies that provide affordable housing and help fight homelessness.
“We certainly have agencies in our ward that have seen a decrease in their funding – the Cornerstone women’s shelter, Centre 507,” McKenney said. “I want to make sure those agencies are not destabilized by this decrease in funding, and I want to know (from) other agencies what other pressures they have as well.”
McKenney says funding for pedestrian and cyclist infrastructure will also be included in her strategic priorities.
A proposed total of $104.6 million is allocated to transit. This would include a $4.2 million investment in transit services, which will mainly go toward increasing routes and will add about 5,700 more Para Transpo trips.
The transit budget also proposes another $60.6 million to renovate buses and the Transitway.
The draft budget also proposes $293.3 million in funding for the Ottawa Police, an increase of $9 million from last year.
The increase is to help fight “emerging crime trends,” including guns and gangs, said Police Chief Charles Bordeleau. The budget also allocates $400,000 toward a “gang exit strategy “ that will focus on re-education and employment for former gang members.
Ottawa residents will see water and sewer rates increases capped at six per cent, a $48 annual increase per household.
“We have a dilemma where we encourage people to use less water, which s a good thing for the environment, but it also reduces the revenue into the system that helps us provide pipes and sewers and waterworks for the rest of the city,” said Watson.
According to City Treasurer Marian Simulik, $115 million of the projected $182-million debt for 2015 will go towards making up for the drop in water/sewer revenue.