City of Ottawa's 2016 draft budget caps property tax hike at 2 per cent

Despite facing a $36-million shortfall in the city's coffers, Ottawa city council tabled a draft 2016 budget Thursday that capped an increase in the city's residential property tax rate attwo per cent.

The draft budget, presentedThursday morning at Ottawa City Hall, also includesa 2.5 per cent increase to OCTranspofares. It would alsoraise the city's water and sewer rates by six per cent, which would meana $49 peryear increase on an average tax bill.

Garbage fees would also be frozen for the third consecutive year.

"We're offering a balanced budget at a reasonable tax increase, but at the sametime we're making the necessary structural cuts," said Watson.

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The forthcoming transit hike was necessary because of the city's commitmentto building light rail, said Watson.

City has tried to 'be reasonable': Watson

"For those who want to think about freezing fares, that would have a detrimental impact on our LRT affordability plan, because we've factored in [those increases] to pay for LRT," Watson said.

"We don't have the ability to freeze wages or freeze fleet maintenance costs. And those costs continue to go up each year. So what we've tried to do is be reasonable."

The budgetalso proposesto eliminate 50 full-time positions from the city workforce, said Watson. The city hasapproximately 15,000full-time employees, according to Thursday's budget documents.

Watson also spoke Thursdayofcreating a permanent fund so that low-income residents can take part in municipal recreation programs, as well as building 10 new splash pads and spending $2 million on recreation facility upgrades.

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