Budget document recommends 2.5% hike in taxes, transit fares

Good morning!

Seemed to have picked up a bit of a cold — COVID negative, at least — and I am dragging a bit. So a big thanks to Geoff for pitching in with this issue. The teamwork at the Lookout really makes this thing run.

One thing you don’t want to miss: I think historical photos are always fun to look at, and this set on Apt613 of downtown intersections is a fascinating peek into Ottawa in the late 1930s.

And thanks to everyone who completed our year-end survey. Based on these results, we have a big announcement hitting your inboxes tomorrow.

Now onto the news.

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Weather Report

Wednesday: +5 🌡️ -1 | 🌧

Thursday: +2 🌡️ -8 | 🌤

Friday: 0 🌡️ -8 | ☀️

CITY HALL

Budget document recommends 2.5% hike in taxes, transit fares

Budget time: City council will set the terms for next year’s budget at their meeting today. A pre-budget document put together by the city’s former treasurer and current interim city manager Wendy Stephanson suggested a property tax increase of between two and 2.5 percent, in line with a campaign promise of Mayor Mark Sutcliffe.

Stephanson also recommended a transit fare increase of 2.5 percent. If agreed to by council, this would go directly against Sutcliffe’s promise to freeze fares for at least his first year in office.

A 2.5 percent increase is also recommended for the city’s police budget. Last year, the contentious fight over the police budget led to a two percent increase, Global News reported at the time.

• Stephenson was appointed as the interim city manager last week, after the abrupt departure of disgraced former manager Steve Kanellakos.

The cost: The city put together estimates for how much the tax increases would cost the average home. For an urban house, a 2.5 percent increase would cost about $104 on the year, while it would cost about $85 for a rural home.

COVID effects: The budget is still feeling the ripples of the COVID pandemic. Notably it expects transit ridership to still be below pre-pandemic levels for 2023. The city also expects lower.

Other notable policies: 

• User fees should rise “in relation to the cost increases” to providing services;

• The city expects pandemic-related grants from the province and federal governments to end, noting as yet there is only confirmed extra funding for Ottawa Public Health;

• And the budget process is on a “compressed timeline” and staff expect a draft of the full budget to be presented Feb. 1 to council.

Pushback: Progressive advocacy group Horizon Ottawa argued council should vote against austerity measures. In a press release, the group said a tax increase of 2.5 percent is well below the almost seven percent rate of inflation, which means the budget is facing a functional cut.

Also on the agenda: A motion by Coun. Cathy Curry (seconded by Coun. Allan Hubley) to increase the honorarium to the chairperson of the Police Services Board to $54,000. Sutcliffe said he would appoint a member of the public as chair of the board, a position that was traditionally held by a councillor or the mayor. The normal honorarium for a public member of the board is $12,000.

What it means: It’s Sutcliffe’s first budget and an early test of his policy promises. One key question — will he stick to his promise on freezing transit fares, against staff recommendations? The tax increase he’s promised is lower than his predecessor by at least 0.5 percent. Adding in Ford’s housing policy Bill 23 which will cut millions in revenue in the coming years. The entire council will eventually be forced to address future revenue shortfalls with two main options: raising taxes, or cutting services. (They can also hope some other level of government picks up the tab, and kick the can down the road a bit further.)

OTTAWA BY THE NUMBERS

💰 $1,065: The average yearly grocery bill is expected to rise this much next year, to a total of $16,288. [CTV]

🦠 975: This many Ottawans have died of COVID since the beginning of the pandemic. [Ottawa Public Health]

OUTSIDE DOWNTOWN

Committees scrapped and rejuvenated trees

🏛️ In Pembroke the new mayor scrapped a number of committees without notice in his first week, including the town’s diversity committee. The committee was formed in response to an attack on an elderly Vietnamese woman in the town. [CBC]

🏥 A woman in Russell was forced to deliver her baby in the ER of the Winchester Hospital after its birthing unit was closed and no other hospital could take her in time. [CBC]

🚨 At the Bayshore Mall, a man fought off multiple men trying to steal his SUV, and suffered minor injuries. [CTV]

🚔 Police have identified a man and a woman as suspects in an alleged hate crime in Stittsville in October. [CTV]

🌲 Storm-damaged Phiney Forest is being rejuvenated by trees grown in a Manotick nursery. [CBC]

HOUSING

Housing sales continue to fall

What happened: The number of home sales in the city dropped 42 percent in November, compared to the same period last year. Sales were down to 846, from 1,456 last November, according to the Ottawa Real Estate Board.

Some numbers of note:

• Only 188 condos were sold last month, a 50 percent drop from last year;

• House prices dropped five percent to $680,031 compared to November 2021;

• Condo prices also dropped over the same period, down four percent to $415,533.

Worldwide trend: The board’s president, Penny Torontow, said the drop in sales is part of a global economic trend. “November’s sales were expectedly low given the typical slowdown this time of year but they also reflect today’s economic conditions.… This is not isolated to our local market,” she said.

The big concern: Torontow raised a big red flag for first-time homebuyers. “The marked decrease in condo sales, for example, signals that even entry-level properties are being affected. Fluctuating markets, paired with the stress test, are keeping first-time buyers on the sidelines in a tight rental market,” she said.

HOUSE OF THE WEEK

If you love to cook then you’ll love this home. Beautiful cabinets and lots of counter space with granite countertops will have you cooking more often. Did we mention it’s got heated floors? Four bedrooms and a sunroom will have you hosting parties in no time.

See how much this downtown, four-bedroom detached home costs.

THE AGENDA

⚖️ More women have come forward with allegations of sexual assault and manipulation against prominent lawyer James Bowie, CTV reported. [CTV]

🎄 The Carleton Tavern has cancelled its annual free Christmas dinner because of virus concerns and a lack of staff. [CBC]

💥 A small plane crashed into the median of the 401 east of the city, seriously injuring the two occupants. [CBC]

🏥 The Red Cross is arriving at CHEO this week, but other children’s hospitals across the province have not called in their services. [CTV]

🚨 One person was taken to hospital after a serious head-on collision in Centretown West left one person trapped in their car, needing to be extracted by firefighters. [Ottawa Citizen]

📚 CUPE education workers accepted their deal with the government, now the focus moves to bargaining with teachers. A deal for them isn’t expected any time soon. [CBC]

COMMUNITY HIGHLIGHTS

• Little Italy's famous sandwich shop Di Rienzos is celebrating its 50th anniversary. [CTV]

• The non-alcoholic drink shop Knyota is ahead of the consumer curve.

• Originally a fort, the historic old city registry will get new life as a bistro as part of a new development downtown. [Ottawa Citizen]

• Take a step into the past with these photos of Ottawa intersections in 1938. [Apt613]

• It’s too close to call whether Ottawa will have a white Christmas or not. [CTV]

• Want to have your announcement featured? Contact our partnership team for more info about advertising.

EVENTS

Three winter events to check out

Santa workshops? Mazes? Wagon rides? Yes, it’s winter event time. Head out with your family to one of these great spots.

The Ottawa Christmas Market

• Location: Lansdowne Park

• Kid friendly: Yes

• Dates: Fridays to Sunday Nov. 25-Dec. 18, and Dec. 20-23

Landsdowne’s Christmas Market is back. An outdoor festival with plenty to buy, eat, and drink, and live entertainment for the whole family. Local vendors, Santa’s workshop, plus wood fires to keep yourself warm.

A Country Christmas at Saunders Farm

• Location: 7893 Bleeks Rd., Munster

• Kid friendly: Yes

• Dates: Nov. 26 to Dec. 18

Country Christmas days have mazes, play structures, wagon rides and plenty of fires to warm up by. And of course Santay and his sleigh. A Holiday Light Festival also runs nights Dec. 1-Dec. 23.

Stanley’s Christmas Village

• Location: 2452 York's Corners Rd., Edwards, Ont.

• Kid friendly: Yes

• Dates: Dec. 3-18

Head on out to Stanley’s Farm where you’ll be whisked to the Christmas Village by sleigh. Games, songs, and plenty of fire to stay warm, and finally a visit with Santa. You can also visit some farm animals or pick up a fresh Christmas Tree when you’re done.

SPORTS

🏀 Ottawa BlackJacks general manager Jevohn Shepherd signed on for another year at the helm of the city’s basketball team. [Ottawa Sun]

🏒 Senators captain Brady Tkachuk’s leadership has been key to the team’s recent turnaround after a brutal start to the season. [Sportsnet]

🎅🏻 Rookie centre Shane Pinto put on a Santa suit for the Sens’ Christmas party. “I have a high voice, I don’t even have a deep voice, so I’m not even sure why they picked me,” Pinto said. [Ottawa Sun]

🤕 Sens defenceman Artem Zub is expected to be out at least three weeks with a jaw injury. [Sportsnet]

Upcoming games

• Senators @ Stars | Thursday, Dec. 8, 8:30pm | Away | TSN5, RDS

• Senators @ Nashville | Saturday, Dec. 10, 1:30 pm | TSN5, TVAS

OTTAWAGUESSER

Congrats to Angela, Michele, Ross, Ron, Erin, and Jocelyne who all knew the Les Terrasses de la Chaudière were the buildings in the background of Monday’s Top Photo. Apologies to everyone who guessed Place du Portage, which is the set of federal buildings a bit less than a kilometre to the northeast.

Do you know where today’s Ottawa Guesser is? The first five people to respond with the right answer will get their names mentioned in the newsletter.

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