Federal transit funds have been announced. Here is how it will help the city

It’s good news for transit: OC Transpo is getting $180 million in federal transit funding over the next decade to help with new costs. It will begin to flow next year and last until 2036. 

The city says the $18 million a year will help upgrade, replace, modernize and maintain public transit and its infrastructure, according to a news release issued. But there is a catch: the funds are tied to achieving greater housing density near transit stations.

The announcement was made at the new Corso Italia LRT station near Little Italy. Kanata MP Jenna Sudds, who previously said it was up to the city to get its own affairs in order, called it a historic announcement. 

• “What you are seeing today frankly is quite historic. This is long-term, predictable funding for the City of Ottawa, for transit, that enables them to think big, to think for the future,” said Sudds, according to CBC. 

Is it enough? You might recall last year Mayor Mark Sutcliffe launched his ‘Fairness for Ottawa’ campaign. He blamed the federal government for not paying enough payment in lieu funds which is given in place of property taxes. 

Also to blame, Sutcliffe said, was fewer federal office workers commuting downtown, which has resulted in about a $140 million shortfall every year. He said that’s another reason why part of the blame should be on the feds. 

The money is not for operating costs which is what the city really needs, but Sutcliffe said this will allow cash to be moved around to help make up that loss. 

• “When we receive funds like this from the federal government, frankly, cash is cash. We can apply it and it closes the gap,” said Sutcliffe, according to CTV. 

More support coming: Sutcliffe has been begging Ontario Premier Doug Ford to step up how much money the province gives, saying Toronto is getting a bigger piece of the pie than Canada’s capital city. That could change now that federal funds have been announced, said the Mayor, but the provincial election could delay things. 

• “It gives me confidence to know that going forward that if we received similar support from the provincial government, we’ll be able to grow and invest in public transit in Ottawa without having to make much more difficult decisions,” Sutcliffe said. 

Increased service? Beacon Hill-Cyrville ward councillor Tim Tierney hopes a portion of those funds can be used to make the LRT run more frequently during off-peak hours. You might recall last fall, it was reduced from every five minutes to every 10 because of budget costs. At the time, OC Transpo said it would save them an estimated $600,000 a year. 

“I am not satisfied with, ‘let’s wait a few months and we can piecemeal add on trains.’ I think we need, at minimum, to get to the seven-minute mark effective immediately and hopefully, with this funding today we can start that conversation right out the gate,” said Tierney, according to 580 CFRA.