Tax Realty Consultant

Public consultations begin today on the 900-page 2008 City of Ottawa draft budget.

The roadmap to spending your tax dollars next year includes options for a tax freeze, a 1.4% and 3.4% property tax hike next year.

City Staff have drafted a 2008 budget that includes a $2.1 billion operating budget and $536 million in capital expenditures.

Ottawa residents are facing a 7.3% property tax hike next year if Councillors cut nothing from the draft budget.

Councillors will need to cut $60 million in programs and services to deliver a tax freeze, $45 million in spending cuts for a 1.4% tax hike and $25 million for a 3.4% property tax hike in 2008.

Staff propose cutting less popular transit routes, closing arenas, pools, 10 libraries and 23 community centres to trim spending. There are also proposals to increase bus fares 5%, increase fares at parking metres and hike other user fees.

Councillor Alex Cullen warns Ottawa taxpayers are facing a tax hike of 5% next year. Cullen told reporters Councillors will look at the budget “very carefully”, but a budget increase is needed to look after today and tomorrow’s needs

Mayor Larry O’Brien believes the City of Ottawa can cut spending next year. A consultants report released by O’Brien shows $97 million in possible cuts next year, including $42 million in administration savings.

The Mayor released his report Tuesday evening that outlines 500 job cuts next year, encourages the city to buy smarter, rationalize services and increase revenue.

O’Brien told reporters “not having the will” to cut spending at City Hall is part of the “culture” in the city.

But City Manager Kent Kirkpatrick suggests the Mayor’s report by consultant Gord J. Hunter is “significantly flawed.”

Kirkpatrick added “the analysis was based on personal conjecture and has been constructed to support a predetermined outcome.”

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