Council approves City joining federal clean-fuel program

Council today approved City participation in the federal Clean Fuel Regulations Program. The program allows municipalities to generate and sell credits for supplying verified clean energy that replaces fossil fuels in transportation. The City will sell credits from its Zero‑Emission Bus program, reinvesting the revenues in future electric buses and with no impact on the City’s ability to also report on corporate greenhouse gas reductions associated with these credits. 

If registered in July, the credits could generate an estimated $1.3 million in revenues in 2026. That could increase to $3.9 million by 2027 and reach $4.3 million annually when the fleet reaches 350 buses.

The City could pursue additional programs in the Clean Fuel Regulations market, generating revenues to fund more emission-reduction initiatives. 

Council approved a new Long Range Financial Plan that provides a ten-year outlook on funding needed to maintain and build City infrastructure. It outlines how the City will fund the renewal and maintenance of its assets to keep them safe and functional. 

The City is facing a $1.23 billion funding gap for infrastructure. To address this, the City will:

• Double the annual contribution increase to capital to $12 million, with $4.5 million of this being used to service $120 million in additional debt that will be taken in 2027 and 2028
• Direct 0.15 per cent of property tax growth revenues to capital growth projects annually, estimated at $3.5 million
• Approve a one-time draw from the Capital Reserve, estimated at $32 million
• From 2029 until 2035 (subject to review in 2028):
  • Increase annual debt by $36.5 million to an annual average of $96.5 million
  • Contribute $29.2 million annually from 2029 to 2030 and $23.4 million annually from 2031 to 2035 from an increase in the base budget
• Reinvest savings from facility rationalizations and revenue generated from facility disposals into projects identified in the Facility Replacement Plan
• Increase the debt servicing budget for tax-supported debt by $14.2 million by 2035 – $2.6 million annually from 2027 to 2030 and $0.7 million annually from 2031 to 2035 – to fund $231 million in new facilities.
• Create a new reserve fund for infrastructure capital projects that address climate change using both a portion of revenues from the annual Hydro Ottawa dividend and tangible operating and capital savings from climate change investments

To improve overall transit reliability and encourage more ridership, Council directed staff to:

• Purchase two six-metre Para Transpo buses
• Pilot adding two hours of Para Transpo service on Friday and Saturday evenings to align with the LRT schedule
• Offer two free familiarization weekends, on September 26 and 27 and another weekend following the launch of the Line 1 East Extension
• Purchase two 60-foot articulated buses
• Install heat tracing on the Line 1 overhead catenary system
• Deploy a suite of transit priority measures requested by Councillors

The City will fund these measures in the interim from the Transit Operating and Capital Reserves, and aims to recover the costs from the Rideau Transit Group.

Council approved more flexibility in how the City can use $44 million in federal housing funding expected in 2027. Council’s approved the Housing Accelerator Fund (HAF) spending plan directs 90 per cent of funding to Ottawa’s Affordable Housing Pipeline, affordable housing acquisitions, and affordable housing enabling infrastructure. The City will continue to prioritize these projects and work with non-profit housing providers to build new affordable homes. Today’s approval will allow the City to respond to new opportunities and partnerships to advance the construction of more affordable homes while continuing efforts to speed up approvals and reduce costs. 

Council also reviewed progress on HAF funding. The City is supporting 1,500 new affordable homes and its partners have delivered more than 800 since 2024, with many more under construction or starting soon. 

Council approved updates to the Municipal Housing Facility By-law to incorporate the City’s new definition of affordability, adjust eligibility criteria related to tenant selection, and implement administrative updates. The changes are expected to make more non-profit affordable units eligible for property tax exemptions. The changes also enable more mixed-rent models, supporting increased financial viability and deeper affordability. Modified tenant selection criteria better align with what households on the Affordable Housing Wait List can afford. 

Qualifying units will enter into agreements with the City to receive a minimum 20-year exemption from both municipal and education property taxes. Property tax savings are required to be reinvested into expanding affordable housing portfolios, paying for capital repairs or offering deeper affordability.

Council received the Ottawa Fire Services’ 2025 annual report, which shows the service continues to meet the needs of residents as Ottawa grows. Last year, Ottawa Fire Services received more than 125,000 calls for service, a nine-per-cent increase from 2024. While call volumes increased, the number of actual emergency responses rose only slightly. Even with this increased demand, the service met most response time standards set by Council, delivering dependable response when every second count. 

Medical calls attended by Ottawa Fire Services decreased by 12 per cent compared to the previous year, reflecting improvements to the emergency dispatch system that ensure emergency resources are used more effectively. In some areas, longer travel distances, traffic and growth in developing communities contributed to longer response times. Overall, performance remains strong and close to established standards, and the City is monitoring trends and planning ahead to maintain reliable service. 

The report highlights Council’s continued investments in firefighters and the resources they need to serve residents safely and effectively. Last year, the service hired 90 new recruits, modernized facilities such as Fire Station 81 in Stittsville, and advanced planning for a new training facility. 

• Agenda