Ottawa – In a coordinated effort to reduce the proposed tax increase for the draft 2010 budget, the City’s Audit, Budget and Finance Committee today debated and voted on an omnibus motion, which identified approximately $58 million in spending reductions and revenue increases.

In addition, the costs associated with recycling and the Green Bin program are recommended to be funded from taxation. The Committee also requested that the Ottawa Public Library and Police Services Boards reduce their 2010 budget requirements by $1 million each and that Hydro Ottawa increase its dividend to the City by $2 million in 2010.

As a result of these adjustments, the draft 2010 budget will propose a 3.9% increase to property taxes, which maintains core services, limits spending, increases revenues and delivers efficiency savings through strategic initiatives.

As part of the new budget process for 2010, Standing Committees previously reviewed operating and capital budgets for their respective mandates and recommended draft budgets for consideration by the Audit Budget and Finance Committee. This new process engaged City Councillors and the public from the beginning of budget planning, which will help Council to make decisions more effectively.

The City also undertook a review of planning priorities, service delivery to residents and savings opportunities and integrated these initiatives into the 2010 budget process, resulting in a Strategic Plan Refresh, Service Excellence Plan and Corporate Efficiency Savings Program.

“The residents of Ottawa asked us, their elected officials, to put forward a budget that they can afford," said Mayor Larry O'Brien. "I am satisfied that this draft budget reflects our citizens' priorities, including what City services need to be maintained, where new investments should be made and where cost savings can be achieved."

Highlights of the draft 2010 budget include:

Operating

• Inclusion of recycling and Green Bin programs in the overall tax rate
• Funding for child care in response to the Province of Ontario’s Best Start Program
• Bridge funding to maintain stability in the Child Care Program as a result of the provincial funding reductions to the Best Start Program
• Addition of 23 new paramedics
• No reductions to Arts and Heritage funding
• Reductions in the Forestry program
• 7.5% transit fare increase commencing in March 2010
• 2% increase in the number of available Para Transpo trips
• Funding for seniors services within Parks, Recreation and Cultural Services branch
• Funding for Ottawa Community Housing

Capital

• Fund $20-million infrastructure levy through debt financing
• Improvements to roads, sewers, transit, parks and recreation facilities, cycling and multi-purpose pathways
• Better access to recreation facility booking systems
• Improved customer service from the City’s 3-1-1 client service centres and through enhanced e-services
• Create a community-based mobile workforce
• Addition of 37 new replacement buses and purchase 43 buses for growth of service in 2011
• New Ottawa West fire station

The draft 2010 budget will be tabled at City Council on December 9. The Ottawa Police Services Board and Ottawa Public Library Board are completing their respective budget reviews and will also table their budgets at Council on December 9. Following a period of Councillor-led ward consultations in December and January, the Committee of the Whole will hear public delegations, debate and finalize the budget starting on January 25, 2010.