Committee recommends City join Clean Fuel Regulations Program

The Finance and Corporate Services Committee approved the City joining the federal Clean Fuel Regulations Program. The program allows municipalities to generate and sell compliance credits based on verified clean energy supplied to transportation uses that displace fossil fuels. In this program, the City will sell credits from the Zero‑Emission Bus Program (ZEB) and reinvest the revenue in future electric buses.

Under the regulations, one credit equals one tonne of emissions reduced. Phase 1 of the ZEB program  aims to replace 350 diesel buses with electric buses by 2027, with each bus reducing about 77 tonnes of emissions per year. If the ZEB program is registered in the Clean Fuel Regulations market in July of this year, the credits could generate revenues estimated at $1.3 million in 2026, increasing to approximately $3.9 million by 2027, and reaching about $4.3 million annually at full deployment at 350 buses.

To participate, the City would need a qualified third-party service provider to meet administrative, reporting, and verification requirements under the regulations. The service provider would be responsible for federal compliance functions, while the City would retain oversight and decision-making authority related to participation and revenue use. These services are typically paid for through either a percentage of revenue or a fixed fee.

The City may also pursue additional programs in the Clean Fuel Regulations market and generate incremental revenues to further fund emission-reduction initiatives. Future revenue opportunities could include municipal fleet electrification, electric vehicle charging infrastructure, and biogas production.

Committee endorses Long Range Financial Plan for tax-supported capital 

The Committee approved a new Tax Long Range Financial Plan (LRFP) which provides a ten-year outlook for the city-wide tax-supported capital requirements to deliver City infrastructure. It outlines how the City will fund the renewal and maintenance of its assets to keep them safe and functional. 

In June 2025, Council approved asset management plans that identified a $10.8 billion funding gap over 10 years. For tax-supported services, the gap was $3.8 billion. After a prioritization exercise, this was reduced to $1.23 billion in 2026 dollars.

To address this funding gap, the City will:

• Double the annual contribution increase to capital from $6 million to $12 million. Of this, $4.5 million will fund $60 million in additional debt in both 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.
• Starting in 2029 until 2035 (to be reviewed as part of the 2028 Tax LRFP):
  • Increase annual debt to an annual average of $96.5 million, $36.5 million more than today.
  • Contribute an estimated $29.2 million annually from 2029 to 2030 and $23.4 million annually from 2031 to 2035 from an increase in the base budget.
• For facility replacements, the City will reinvest savings from facility rationalizations and revenue generated from facility disposals into capital projects identified in the Facility Replacement Plan.
• It would also 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.
• For climate change enhancements, the City will create a new reserve fund for infrastructure capital projects using:
  • Revenue from the annual Hydro Ottawa dividend that exceeds its budgeted contribution
  • Tangible operating and capital savings from climate change investments

Over the next two years, staff will be reviewing financial and non-financial options to address the funding gap for service enhancements, including new revenue sources and policy changes.

Committee receives Q1 budget status update

The Committee also received an update on the City’s first quarter Tax, Transit and Rate Supported Programs Operating and Capital Budget Status. The City is projecting a deficit of $28.75 million for the first quarter, driven mainly by higher than expected costs for winter operations and a $7.16-million deficit in Transit Services. Mitigation measures, including a discretionary spending freeze and a pause in non-essential hiring, remain in place to manage the financial impact of these unforeseen pressures. 

The Q2 Status Report will provide a clearer picture of the City’s financial position and will include a forecast to the end of the year.

Committee approves request for additional funding for the Ᾱdisōke project 

The Committee received an update on the progress of Ādisōke, a shared facility in partnership with Library and Archives Canada and the Ottawa Public Library. The report provided an update on the project schedule and a request for additional budget authority to maintain project oversight and top-up the construction contingency.

While steady construction progress has continued at Ādisōke, and the project is now approximately 85% complete, the contractor has communicated further delays since the last update to Council. Staff are closely monitoring progress and maintaining enhanced oversight.

The request for additional funding is focused on two primary components: continued project oversight and supporting services to maintain continuity of the project team, and a construction contingency top-up. The total funding request is $18.5 million and is shared between the City, Library and Archives Canada and the Ottawa Public Library, in accordance with the Ādisōke Governance Agreement.

Schedule and budget oversight on this project remain a top priority with rigorous and enhanced risk monitoring and management.

Committee approves procurement process for new west-end paramedic facility

The Committee recommended a three‑stage competitive procurement process for a new west-end paramedic deployment facility at 4061 Strandherd Drive. The process would include:

• A request for qualifications
• A request for proposals
• A negotiation and agreement stage

The approach follows established procurement practices and will help ensure a fair, open and competitive process that delivers value for money.

The City will use this project to test new approaches that maximize opportunities for local and equity denied labour in addition to training and apprenticeship programs. The City will work with the Building Trades Council and other industry partners to develop these new procurement approaches.

Committee updates Municipal Housing Facility By-law to encourage more affordable housing

The Committee approved updates to the Municipal Housing Facility By-law to incorporate the City’s new definition of affordability adopted in the Council-approved 10-Year Housing and Homelessness Plan refresh, adjust eligibility criteria related to tenant selection, and implement minor administrative updates. With these updates, more non-profit affordable units will be eligible for property tax exemptions through the By-law.

Property taxes are among the largest operating costs for these providers. Updates to the By-law respond to feedback from the community housing sector about current challenges and will enable more mixed rent models to support increased financial viability and deeper affordability. Adjustments to the tenant selection criteria in the By-Law will better align with what households on the Affordable Housing Wait List can afford.

A projected maximum of 4,500 existing not-for-profit units could qualify, along with a potential for 500 newly developed affordable units each year. Qualifying units will enter into agreements with the City to receive a minimum 20-year exemption from both municipal and education property taxes. Housing providers will be required to reinvest their property tax savings into expanding their affordable housing portfolios, paying for capital repairs, or offering deeper affordability.

Additional City lands approved for housing development

The Committee approved declaring two City-owned properties as surplus for housing development: 574 Bank Street and a portion of 1770 Heatherington Road not previously declared surplus. It also approved transferring five properties for nominal value to select non-profit housing providers: 574 Bank Street, 1770 Heatherington Road, a portion of 1824 Trim Road, 306 Cyr Avenue, and 2548 Cléroux Crescent.

The Committee also approved declaring 1601 Prince of Wales Drive as surplus and waiving requirements of the City’s Real Property Disposal Policy to allow its sale to Carillon Co-operative Housing Incorporated.

More businesses to benefit from new Cyrville BIA and Preston Street BIA expansion 

The Committee approved an expansion for the Preston Street Business Improvement Area (BIA). It would extend north to City Centre, east to parts of Lebreton and Booth streets, and west past Champagne Avenue South. It also approved forming a new Cyrville Business Improvement Area. The new area would cover Cyrville Road and surrounding streets, from Donald Street in the north, to just south of Innes Road, and west to St. Laurent Boulevard.

If approved by Council, the City Clerk would send out a notice of intention to expand the Preston Street BIA and create the Cyrville BIA. Affected property owners in both areas must, within 30 days of notice, provide a copy to each tenant who pays all or part of the property taxes. Council would not pass the by-law if enough written objections were submitted within 60 days. Objections must represent:

• At least one-third of the total number of persons entitled to notice, and
• At least one-third of the annual municipal property taxes in the affected business property classes.

City Council will consider the recommendations from today’s meeting on Wednesday, June 10.

Related topics

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