Council approves 2025 City Budget

Council today approved the City’s budget for 2025, which aims to build a city that’s safe, fair and affordable for all. Council today approved the City’s budget for 2025, which aims to build a city that’s safe, fair and affordable for all. Budget 2025 continues to invest in the more than 100 services that keep Ottawa running. It includes $54.2 million in savings through service reviews and continuous improvement initiatives, bringing the total to $207.7 million in savings since 2023. The budget increases investments in key areas, such as transit, housing, safety and security, and roads. Residents would see an overall tax increase of 3.9 per cent, which includes a 2.9-per-cent increase for the citywide and police levy. The additional one per cent is due to an increase in the transit levy. Recognizing the importance of public transit to all residents, the transit budget takes a balanced approach based on recommendations from the Transit Long Range Financial Plan working group. The City is investing heavily in transit and the 2025 operating budget is $856 million, the largest investment in OC Transpo’s operating budget ever. O-Train Lines 2 and 4 will open in phases beginning on January 6, and the East extension of O-Train Line 1 to Trim Station is planned to open in 2025. Service reliability will be improved by replacing more than 100 aging buses with zero-emission buses and by implementing the New Ways to Bus route network. Para Transpo service will also increase to reflect higher levels of ridership demand. The City has worked to make Ottawa’s public transit system more efficient and to reduce costs, saving $33.6 million in the 2025 budget. Despite these savings, there remains a significant funding gap for 2025. This has resulted in increases to transit fares and the transit levy that ensure there is no reduction in transit service. The transit levy increase and changes to transit fares approved today will:

• Increase most fares by five per cent, making an adult ride $4 and a monthly pass $135
• Introduce a $2 fare for children ages 11 and 12 while children 10 and under will continue to ride for free
• Maintain the existing EquiPass, Community Pass and Access Pass fares
• Approve a 5 per cent increase to the Youth monthly pass, from $99.25 to $104 per month, effective January 1, 2025
• Delay the plan to replace the Ottawa Student Transportation Authority-provided youth monthly pass with an adult-fare pass until September 1, 2025

Council directed staff to undertake a full review of all transit fares, including looking at fares in other Ontario municipalities and sustainable models from other cities around the world, and to report back in 2025, in parallel with the Long-Range Financial Plan for Transit and the Transportation Master Plan review. With the approved 2025 investments in public transit, the City will continue to seek funding from the federal and provincial governments in line with what is being provided to other Ontario cities to sustain reliable transit services. To that end, Council approved formally calling on the federal and provincial governments to establish a working group with the City on transit funding and other issues, with the goal of finding a fair and equitable solution. Budget 2025 will help increase Ottawa’s housing supply, with more affordable options below market rates. Key investments include:

• $48.5 million through Ministry of Municipal Affairs and Housing’s Homelessness Prevention Program to support the shelter system, housing loss prevention programs, supportive housing and general housing assistance programs
• $22.9 million in base funding for the Housing Long-Range Financial Plan
• $16.9 million through Housing, Infrastructure, and Communities Canada’s Reaching Home program to fund supportive housing providers and the City’s Housing First programs

Budget 2025 also enhances public safety. Key investments include:

• Capital investments totaling $17.9 million for Emergency and Protective Services to address population growth, intensification, and a growing number of high-priority calls
• The addition of 23 paramedics, 22 firefighters, 10 by-law staff, new vehicles and improved technology to support their work
• $16 million through the Ontario-Ottawa Agreement to address downtown safety, alternative mental health supports and transit security

The City is also investing in Ottawa’s transportation networks to help you get around more easily and keep everyone safe. Investments include:

• $184.6 million for integrated road, water and sewer projects to keep road infrastructure in good working order
• $69.5 million for road resurfacing
• $34.8 million for transportation bridges and structures
• $18 million for safety initiatives that align with the City's Strategic Road Safety Action Plan
• $14.2 million for sidewalks and pathways
• $13.6 million for pavement preservation
• $7.7 million for new traffic control devices, such as signals and roundabouts
• $1.5 million for citywide permanent traffic-calming measures

For more information on Budget 2025, visit ottawa.ca. Council approved the concept plan for 930 and 1010 Somerset Street, directing staff to pursue zoning and Official Plan amendments to facilitate development of the proposed community hub. The site will include a new French-language public school and will feature a new recreation and cultural facility, a new park, the community hub and upgrades to Plant Recreation Centre. It also includes affordable housing that would add to the nearby Ottawa Community Housing project at 933 Gladstone. Staff will report back to Council by Q1 2027 with a comprehensive work plan and a funding strategy for the proposed community hub.  For more information on City programs and services, visit ottawa.ca, call 3-1-1 (TTY: 613-580-2401) or 613-580-2400 to contact the City using Canada Video Relay Service. You can also connect with us through Facebook, X (Twitter) and Instagram. Related topics

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