ABF Committee recommends draft 2010 budget

November 27th, 2009

In a coordinated effort to reduce the proposed tax increase for the draft 2010 budget, the City’s Audit Budget and Finance (ABF) Committee today voted for approximately $58 million in spending reductions, and revenue increases.

As a result of these adjustments, the draft 2010 budget will propose a 3.9% increase to property taxes, which maintains core services, limits spending, increases revenues and delivers efficiency savings through strategic initiatives.   

For the draft 2010 budget, Standing Committees reviewed operating and capital budgets for their respective mandates and recommended draft budgets for consideration to the ABF Committee. I’d like to thank the Committee Chairs for their contributions to this new process, which engaged City Councillors and the public from the beginning of budget planning, helping Council to make decisions more effectively.

The City also undertook a review of planning priorities, service delivery to residents and savings opportunities and integrated these initiatives into the 2010 budget process, resulting in a Strategic Plan Refresh, Service Excellence Plan and Corporate Efficiency Savings Program. 

The residents of Ottawa asked us, their elected officials, to put forward a budget that they can afford. I am satisfied that this draft budget reflects our citizens’ priorities - including what City services need to be maintained, where new investments should be made and where cost savings can be achieved.

On December 9, the draft 2010 budget will be tabled at City Council. Following a period of Councillor-led ward consultations in December and January, the Committee of the Whole will hear public delegations, debate and finalize the budget starting on January 25, 2010.

No Comments »

Public Service Wage Freeze

November 27th, 2009

The city of Ottawa is not alone in facing budget challenges. The Province of Ontario is looking at a $25 billion deficit, and every public institution in this country is being stretched to its financial limit. That’s why I am asking the Province to freeze wages for all public sector employees. For the City of Ottawa, a freeze on staff wages would save about $25 million in 2010. Today I sent a letter to our Premier, Dalton McGuinty, asking him to pass legislation to freeze all Ontario Public sector salaries for two years:

 

27th November 2009

 

The Honourable Dalton McGuinty,

MPP, Ottawa South

Premier, Province of Ontario

Room 281

Main Legislative Building

Queen’s Park, Toronto M7A 1A1

 

 

Dear Premier,

 

As Mayor of the City of Ottawa, I am writing to you on an issue that affects every public sector employer in the Province of Ontario.

 

This week, Ottawa City Council prepared a 2010 budget that included over $60 million in spending deferrals and cuts in an effort to limit the property tax increase to 3.9%.

 

The single largest line item in our 2010 budget was public sector wage increases. I acknowledge the hard work and dedication of our employees but realize that wage settlements beyond those in the private sector places a large burden on all of our taxpayers, including those that can least afford increases-such as seniors and the poor.

 

There have been reports that you may be considering the re-introduction of unpaid days off to deal with the estimated $24.7 billion provincial deficit. I would like to express my concerns with this approach, as so many of our public sector employees deliver vital front line services that cannot be accommodated by additional absenteeism.

 

The provincial legislature has, within its authority, to introduce special legislation that would freeze public sector salaries for a recommended two years. This would allow municipalities, hospitals, schools and your own government to continue the recovery from the recession, while maintaining the front-line services our residents depend upon. This is not something that municipalities can do themselves. Ottawa is unique in that so many of our collective agreements include mandatory arbitration, but all municipalities are burdened with the knowledge that arbitrators are not required to look at the taxpayers ability to pay.  In addition, many of our collective agreements were signed prior to knowing the full extent of the global downturn.

 

The current financial difficulties are shared by many and we wish to work together to return the province and all Ontario municipalities to financial sustainability, I am asking for your consideration of this request as I believe it is in the best interests of all Ontarians.

 

 

Sincerely,

 

Larry O’Brien

 

Cc:  Hon. Dwight Duncan

       Minister of Finance

 

3 Comments »

Attend the Mayor’s Annual Christmas Celebration!

November 23rd, 2009

The festivities will take place on Sunday, December 13, 2009 from 1 to 5 pm. in the Aberdeen Pavilion at Lansdowne Park, 1015 Bank Street. The fun-filled celebration will include a visit with Santa, crafts in Santa’s workshop, story telling with Mrs. Claus, live music and entertainment, plus some tasty treats including BeaverTails, Papa Jack Popcorn and much more!

In addition, enjoy skating to the magic of Christmas music on the Urbandale Centre ice (formerly the Ottawa Civic Centre) from 1 pm to 4 pm.

To help those in need and to share in the spirit of the holiday season, admission to this event is a non-perishable food donation to the Ottawa Food Bank. A donation makes those 18 years or older eligible for a door prize.

OC Transpo will offer free bus rides on all routes to and from Lansdowne Park from noon to 6 pm on Sunday, December 13 to children 11 years and under when accompanied by a fare-paying adult.

I hope to see you there!

Photos are now available here:

Photos - Mayor’s Ninth Annual Christmas Celebration

5 Comments »

Mayor’s 2010 Budget Challenge

November 20th, 2009

The people of Ottawa elected me in 2006 to put a lid on runaway spending increases at City Hall.  And after three years as Mayor I am more convinced than ever that the City does not have a revenue problem; it has a spending problem.  My commitment to reducing spending on behalf of the citizens of Ottawa has not wavered. Last week, Committee chairs released their budget estimates, and I am disappointed with the results. The current estimates, left unchecked, will collectively cost the average homeowner $293 more in annual property taxes and levies; an 8% increase over 2009. And this does not include an expected 9% rise in water and sewer rates.

With inflation at historically low levels, these increases don’t make sense.  The unfortunate reality is that rising taxes and additional fees hurt low-income families and seniors the most. Unemployment is up slightly, more people are living on the edge, pensioners will see little growth in the coming year and yet the Committees are piling on additional costs at a time when we can least afford it. Ottawa residents are working hard to live within their means and I am again asking Council to do the same.

On November 17th,  the Audit, Budget and Finance (ABF) Committee began its work with a mandate to develop a budget that our residents can afford.  The budget pressures being addressed are significant:

  • An effective increase of 3% in the $1.1 billion budget for staff wages
  • New programs, such as the $17 million green bin
  • Service enhancements for Police, Fire and Paramedic
  • Shortfall in pension funding caused by the economic downturn
  • Tax payments from the federal government that have been effectively frozen
  • Reduced investment income due to lower interest rates
  • Increased debt costs for infrastructure and stimulus capital projects
  • Depletion of the tax rate stabilization reserve in 2009
  • Operating deficit in 2009 that is carried to 2010
  • The need to invest more to maintain City infrastructure

The rare piece of good news for 2010 is the $19.2 million in costs that the province is uploading from the Ontario Disability Support Program.

Although I would like to see no tax increases, I’m concerned that some of my Council colleagues believe residents can pay more again this year.  Nonetheless, I am determined to work with those Councilors who are prepared to roll up their sleeves to make a substantial dent in City spending.  While a zero tax increase is unlikely with this Council, bringing spending and tax increases down to a moderate level, near 3%, is a goal that needs to be achieved. It is in the best long-term interest of Ottawa, and a necessity for our residents struggling in these difficult times.

The challenge for the ABF Committee is to scrutinize the City’s approximately $2.2 billion operating and $500 million capital budgets, a task made all that more difficult since the Standing Committees failed to bring forward any significant spending reduction options.

The City’s overall budget can be reduced, but it will require your support and courage from your elected representatives.

For example, one of the City’s biggest costs is our payroll. Where we can, we need to ask if positions that have become vacant need to be re-hired, or whether we can continue to deliver the same services without them.

The Finance Committee also needs to put back on the table the options that were rejected by the Standing Committees. We need to scrutinize not only new capital projects, but review projects that were put on the books in prior years. New or augmented services that Council approved during the year, before we knew the overall financial picture, need to be reconsidered. 

I am prepared to roll up my sleeves and work with my Council colleagues at the ABF Committee, and again at full Council.  It is our responsibility to review all ideas and options to deliver the lowest possible tax increase while respecting the Fiscal Framework that Council endorsed in 2007.  It is time for Council to do what our citizens expect and conduct a hard-nosed business-like review of City spending. Please phone your Councillor if you agree that getting control of the tax bill is worth their time and effort. It’s my number one priority.

21 Comments »

Older Entries



< ?php wp_footer(); ?>