August 8th, 2024
Statement from City of Ottawa Mayor Mark Sutcliffe
A Call For Fairness For Ottawa
Ottawa is unique:
We are the nation’s capital. We are the second largest city in Ontario. The decisions of the federal government have an enormous impact on our city, more than any other city in the country. And because we’re not Toronto, we have historically been overlooked by the provincial government, getting less than our fair share of support.
As a result, we’re facing a crisis right now. This is a critical juncture for our city’s finances. I can’t overstate how important this is.
Summary of Our Key Challenges:
Ottawa is grappling with a significant financial crisis, made worse by the federal and provincial governments not giving us our fair share in two areas:
1. Payments in Lieu of Taxes (PILTs):
The federal government, which owns an enormous amount of real estate in Ottawa, pays far less in PILTs than it should. Annual payments have declined from $194 million in 2016 to $164 million today, this places an unfair burden on local taxpayers, who have to cover the shortfall to pay for municipal services.
We need the federal government to pay its fair share of property taxes.
2. Public Transit Funding:
Our transit system is facing a $9 billion shortfall in the long-range financial plan. Our system was built in good faith to support our largest employer. The decline in ridership from government employees costs us $36 million a year. In addition, Ottawa doesn't get its fair share from other levels of government for capital projects. Local taxpayers are paying 56% of light rail capital costs, compared to 0% for many projects in Toronto.
We need an equitable funding model.
Key Messages:
1. Fair PILTs Payments: The federal government must meet its fair share of property tax obligations and stop the continuous shifting of the burden to local taxpayers
2. Transit System Support: Ottawa’s public transit faces a $140 million annual operating shortfall. We need fair funding from all levels of government to keep our transit system sustainable.
3. Equal Treatment for Ottawa: Ottawa deserves the same level of transit funding support as other major cities such as Toronto. It’s time for a fair deal from our federal and provincial partners.
4. Immediate Action Needed: We need swift action to address these issues, or we will need big tax and fare increases and service cuts in the 2025 budget.
5. Get Involved: We need Ottawa residents to support our campaign and advocate for Ottawa’s fair share.
If you don't want to see significant tax increases or service cuts because of a lack of fair funding from other levels of government, please join our campaign by signing the petition here: Mayor Mark Sutcliffe | Fairness for Ottawa
Power point presentation: