Ottawa – The City’s draft budget for 2021 will be tabled at a special City Council meeting on Wednesday, November 4. Council today approved directions and timelines to develop the draft budget for 2021.
The draft budget will include a three-per-cent increase to the municipal tax rate, which would see the average urban homeowner pay an additional $115 per year and the average rural homeowner pay an additional $88 per year. The city-wide levy, which funds most City services, would increase by 2.5 per cent, while the transit levy would increase by 4.6 per cent, for an overall three-per-cent tax rate. Council will adopt the final budget on Wednesday, December 9.
COVID-19 has put financial pressure on the City, with staff projecting a $59.6-million deficit this year. Council received a report the second-quarter status of this year’s budget, along with a year-end budget forecast. Although the City is currently in a good position with cash flow, a resurgence of COVID-19 could worsen cash flow and the projected deficit.
To address the projected deficit, Council approved deferring 33 capital projects to 2021 or later. This deferral will return $42.6 million to reserves and help address funding gaps if required.