New Ottawa city council will have to figure out year-end deficit

Financial forecasts for various City of Ottawadepartments and boards suggest the new city council will need to resolve asizable deficit for 2022.

Municipalities in Ontario are not allowed toend theyear in the red.

At its final meeting of the term on Tuesday, the finance and economic development committee will consider the mid-year financial update, which projects a $12.2-million shortfall by year's end.Updates on the transit, police, library andpublic health portions of the city's overall $4.1 billion operating budget are reported separately.

• Derecho cleanup to cost city an estimated $50M this year, and it's not over yet

COVID-related expenses could top $65 million, but the city expects funding from upper levels of government to cover those.

Beyond that, the public works department spent millions cleaning upthe derecho storm from last May, and the city faced other costs from the truck convoy protests last winter.

The city also expects to bring in less revenue from payments from federal buildings and the Rideau-Carleton Raceway, and less money from red light camera tickets. Water bills are also providing less than expected because people are consuming more at home where rates are cheaper than at the office.

Some of those losses are offset by surpluses: the city has anextra $2.5 million because of less winter maintenance (less snowfall)and the city had savings from some positions left vacant.

Police pressures

There's a much larger hole not reflected in that report: a $85 million shortfall in the transit department. The transit commission had already heard in September how OC Transpo's ridership had notbouncedback as projected some had forewarned the budget was based on fare revenue that was unlikely to materialize.

The treasurer said she was awaiting an announcement from the province, and expects that biggap to be covered.

• Transit deficit estimated to hit $85.5M in 2022

On Monday evening, the police services board will also hear that their books are likely to be balanced, but some big pressures exist for the force.

Police have spent about $11 million in2022 to deal with the truck convoy protest last winter, as well as the Rolling Thunder rallyin April, Canada Day, and other events. The force expects Public Safety Canada to reimburse those costs.

The police also cite unexpected savings of $3.5 million because of a high number of vacancies. When it did turn to hiring it found a "diminished recruit pool," butis trying to hire 80 to 95 officers in the coming months. The labour market is also tight for civilian police staffwhere it also has vacant positions.

Meanwhile, the service agreed at budget time to find $7 million in base efficiencies, which former chief Peter Slolyhad called "an extremely aggressive goal."

The report for Tuesday echoes that, saying by the end of September it had found $3.1 million, or 44 per cent, of those savings by limiting travel and credit card purchases, reducing 15 jobs, and getting better rates on contracts.

For its part, Ottawa Public Health projects to spend $77 million in 2022 related to COVID-19 and expects to be reimbursed bythe Ministry of Health. The Ottawa Public Library anticipates a surplus of $3.2 million.