Councillors approve 3% property tax increase

The now-standard three per cent annual property tax increase was supported by a majority of Ottawa city council members Wednesday for the 2022 municipal budget, with some arguing before the vote that these extraordinary times demanded a different tack from city hall, while Mayor Jim Watson defended the status quo for the same reason.

Watson was elected on a promise to cap annual property tax increases at three per cent, an amount that “basically allows the city to cover inflationary costs, while investing one per cent in aging and crumbing infrastructure,” he said Wednesday.

As council went to vote on directions for development of the draft 2022 budget, including that same property tax increase for the fourth year in a row, Watson told councillors that in addition to those already under financial pressure — such as newer homebuyers or seniors living on fixed incomes — the pandemic has left Ottawans out of work and facing financial uncertainty.

“Now is the time not to start jacking up municipal taxes more than we need to,” Watson said.

Council voted 16-8 to endorse the budget directions, with a number of councillors registering dissent on a proposed increase of up to three per cent for the Ottawa Police Service levy. (The overall tax rate is made up a series of levies, and boards, like the OPS board and public health board, are asked to develop their draft budgets based on the increases to these levies approved by council.)

Capital Ward Coun. Shawn Menard moved a motion proposing that the police levy stay flat and that the money associated with a three per cent increase be directed to Ottawa Public Health.

Police board chair Diane Deans, councillor for Gloucester-Southgate, said the board had made a promise to the public to try its best to freeze the budget or at least reduce their ask compared to 2021, but she couldn't commit at that moment to making a zero per cent increase happen.

The city-wide levy, which includes funding for public health and the Ottawa Public Library, is to increase by no more than 2.6 per cent under the approved budget directions.

Deans, meanwhile, took aim at the overall budget direction.

“I find this approach lazy,” she said, noting that she doesn't think every single service, especially post-pandemic, requires the same amount of money. She said she would like to see a lower number set across the board, with each city service required to justify any request for additional funds.

City treasurer Wendy Stephanson said they already tried to do that in the budget-building process — the three per cent increase isn't simply rolled out across all city components.

Rideau-Vanier Coun. Mathieu Fleury took a similar position, pointing to the financial strains of the pandemic on city coffers and suggesting this is the time to take a deep dive and reprioritize spending based on council priorities.

“I don't think we can go back,” Fleury said. “I think we've gone somewhere that we have to look at: What is the city of the future and what are the services that residents expect over the coming years?”

Gloucester- South Nepean Coun. Carol Anne Meehan opposed the overall three per cent tax increase, saying it did not meet the reality of people's lives in Ottawa right now.

The tax increase is estimated to cost the average urban homeowner $119 and an average commercial property owner $242.

Council voted to refer Menard's motion for council consideration after the tabling of the OPS draft budget, with the city treasurer to provide an update on potential funding available in time for the 2022 budget review process.

Now is the time not to start jacking up municipal taxes more than we need to.