Mayor asks council to restrict subsequent yr’s tax enhance to three.75%

Ottawa Mayor Mark Sutcliffe is seeking to maintain any property tax enhance subsequent yr to three.75 per cent, as he prepares to go to metropolis councillors along with his high-level funds asks to fund “critical areas” like policing and transit.

That quantity is simply a goal, an higher restrict meant to information metropolis employees as they draw up an in depth draft funds over the approaching months. It comes as a part of the 2026 funds instructions report launched Thursday.

The report lays out the associated fee pressures dealing with the town and the way a lot cash it should increase to cowl them.

“Once again, we are committing to keeping taxes as low as possible while investing in safety and reliability,” Sutcliffe informed a information convention on Thursday.

Much of the tax goal enhance may go to pay for police. The higher restrict of tax will increase to help most metropolis companies could be 2.9 per cent beneath the proposal, whereas a levy that funds the Ottawa Police Service may rise by a lot as 6.5 per cent. The 3.75 per cent determine is a mixed common.

Sutcliffe mentioned it might be the most important increase to the police funds in additional than 15 years. He mentioned it should assist help the transfer to a district policing mannequin and implement a employees stabilization technique.

“Our residents have been asking for better and more effective policing,” Sutcliffe mentioned. “They want to see more officers patrolling our streets. They want faster response times. They want to feel safe in their community.”

If the funds instructions cross, metropolis employees can even have a look at fare will increase and working efficiencies at OC Transpo, which Sutcliffe mentioned continues to be dealing with a structural deficit.

Months-long funds course of

It’s solely the primary public step in a months-long funds course of. Councillors will debate and vote on the report subsequent month, after they may regulate the proposed tax goal up or down.

City employees would then return to the drafting board and write up an in depth funds proposal that meets the council-approved instructions. It will then come again to council for approval later within the fall.

The proposed 3.75 per cent tax enhance for 2026 is much like the ultimate quantity on this yr’s funds, although the upper vary for the police levy is new.

City employees initially proposed a 2.9 per cent tax enhance for 2025, although that did not account for a deep deficit at OC Transpo. Ultimately, metropolis council raised transit fares and a transit levy that successfully pushed the tax hike as much as 3.9 per cent.

The transit pressures have not disappeared. For 2026, the instructions report contemplates elevating fares and a levy for transit but once more.

“This report includes a range of options to increase funding for public transit to record levels,” Sutcliffe mentioned. “Public transit it vitally important to our community and our economy.”

While the transit levy may rise in a spread between three and 15 per cent, fares may rise anyplace between 2.5 and seven.5 per cent. Staff may additionally search for additional “operating efficiencies” and preserve in search of help from greater ranges of presidency.

Those are at the very least the choices employees will think about as they draft the funds, assuming council approves the instructions report.

In his election marketing campaign, Sutcliffe had promised to restrict tax hikes to 2.5 per cent, however just for the primary two years of his time period. He achieved that in 2023 and 2024.