Draft Budget 2026

The City of Ottawa is required under the Ontario Municipal Act to maintain a balanced budget each year, which means the City cannot run deficits and must fund all services and infrastructure through taxes, fees, and other revenues. Ottawa is facing significant growth pressures, with its population projected to increase by approximately 402,000 people by 2046, reaching 1.41 million residents. This growth will require additional private dwellings and expanded infrastructure, placing increased demands on water, wastewater, transit, roads, and emergency services.  While the City works to manage affordability, it is important to recognize that many cost pressures are outside municipal control. Rising mortgage rates, utility costs, and general inflation affect household budgets but also increase the cost of delivering municipal services. Construction costs, labour agreements, and regulatory requirements add further pressure. These external factors, combined with limited provincial and federal funding, make it challenging to maintain service levels without adjustments to local property taxes and fees. 

As per Council direction, In 2023 the City launched two programs aimed at finding cost savings and finding operational efficiencies. The Service Review Framework involved formally evaluating City services to identify opportunities for cost savings and revenue generation to reinvest in strategic priorities from this Term of Council. As a compliment to the Service Review Framework, the Continuous Service Improvement program focuses on creating organizational capacity by simplifying, automating and standardizing processes, which in turn has helped departments absorb growth without the need for additional resources. From a financial perspective, these efforts have achieved a cumulative savings of more than $252 million in this term of Council’s budgets. These savings have helped the City avoid passing on a 12% increase in property taxes to residents.

The $550K increase to Ottawa Community Housing’s (OCH) Community Safey Services (CSS) will assist OCH in maintaining current service levels of the CSS program.  

CSS has been operational since 2007 and OCH has been working closely with the City to address an existing funding gap for CSS which has grown over the years due to the growth in need. The City remains committed to working with OCH to provide incremental increases in funding to ensure the viability of the CSS program as a priority.

The CSS model of safety services is a 24/7 service specifically aimed at implementing sustainable solutions to address community safety and wellbeing in a social housing context. Their work reduces calls for service to other agencies such as the Ottawa Police Service, Ottawa Fire Services, Ottawa By-law Services, and Emergency Management Services while also helping to speed up referrals to needed supports, reduce the impact of negative incidents on the broader community, and preserve the tenancies of vulnerable tenants.  

For more information related to the CSS program, please reach out to OCH directly at info@och.ca. 

The $2M and $144K amounts referenced in the draft budget are not related to CSS.  

Projects proposed for funding in the 2026 Cycling Facilities Program are listed in the Draft 2026 Budget and include:

• Byron and Churchill protected intersection
• O’Connor Street cycling facilities (Laurier to Wellington)
• Albert and Slater cycling facilities (Bay to Elgin)
• Albert Street cycling facilities (City Centre to Empress)
• Brian Coburn Boulevard pathway (Mer Bleue to Aquarium)
• Pavement marking and signage upgrades on several corridors

Cycling infrastructure is also delivered through a range of project streams, including integrated road renewals, road safety initiatives, and new road and transit projects. Staff are currently assessing the implications of Bill 60 on projects with cycling elements. More information can be found in the following report: Potential Implications of Bill 60 on Cycling Projects and Recommendations for the 2026 Capital Budget

The Cycling Facilities Program budget for 2026 and previous years is summarized below:

2026 Budget - $16.3M (proposed)

2025 Budget - $9.9M

2024 Budget - $5.6M

2023 Budget - $7.5M

Since 2023, curbside residents have not been paying for recycling collection (and processing) services. The City has been under contract with Circular Materials and has been compensated for the residential recycling collection through that contract. This was incorporated in the development of the City's Long-Range Financial Plan for Solid Waste Services 2025-2034 which provides a forecast of future rate increases and ensures the City can meet it's current and future capital needs for Solid Waste Services as presented in the City's Solid Waste Master Plan. 

Ottawa’s solid waste fee is a single, rate-based charge that funds all waste services. Every household pays the same rate, which directly supports waste operations rather than relying on property taxes. In 2025, the cost per household was $265 — lower than in most similar-sized cities. This fee covers: 

• Implement the action suites of the Solid Waste Master Plan 
• Continue collecting garbage, green bin, and yard waste 
• Providing recycling at City facilities, parks, and small businesses, which are not part of the new provincial program 
• Operate the City’s Trail Waste Facility 
• Organize and run the City’s Household Hazardous Waste Events 

 The City will continue to provide efficient garbage and organics collection and also focus on waste reduction and diversion initiatives. 

The City of Ottawa does not use "premium pricing" to develop OC Transpo's fare table. The 2026 Transit Services budget, which includes the fare structure, is focused on maintaining services and improving the reliability of the system within the reality of the City’s current financial limitations. The budget proposes an average increase of 2.5% for most transit fares, which is in line with inflation. In addition, OC Transpo will freeze low-income passes, which are EquiPass, Community Pass and Access Pass.

The Non Departmental line reported in the draft Transit operating budget under “Expenditures by Program” mainly represents debt servicing and contributions to the Transit operating and capital reserve. The Transfers/Grants/Financial Charges line under “Expenditures by Type” captures similar items as reported under Non Departmental such as debt servicing and contributions to reserve, but also includes finance charges like merchant card fees and bank service charges.

The Draft 2026 Operating and Capital Budget reflects a commitment to serving the community while balancing affordability and sustainability. Taxpayer growth from new developments is incorporated into the budget through estimated property tax assessment growth, projected to increase by 1.6% in 2026 and generating an additional $34.96 million in tax revenues. This helps offset the need for a larger tax increase, which is expected to raise $81.87 million. Growth-related capital projects are funded through Development Charges (DCs), based on the 2024 DC provisional study and 2026 projections, with adjustments reported back to Council.

While new developments increase property tax revenue, they also require significant investment in infrastructure and services—such as roads, water and sewer systems, transit routes, emergency services (police, fire, paramedics), and ongoing operations like snow clearing and waste collection. While the City works to manage affordability, it is important to recognize that many cost pressures are outside municipal control. Rising mortgage rates, utility costs, and general inflation affect household budgets but also increase the cost of delivering municipal services. Construction costs and regulatory requirements add further pressure. These external factors, combined with limited provincial and federal funding, make it challenging to maintain service levels without adjustments to local property taxes and fees.

The Draft 2026 Budget reflects a careful balance between affordability and the need to maintain essential services and infrastructure. Without these measures, service quality and reliability would decline, leading to higher costs in the future.

Residents are encouraged to provide feedback through upcoming public consultations to ensure the City’s approach continues to align with community priorities.

The City of Ottawa is required under the Ontario Municipal Act to maintain a balanced budget each year, which means the City cannot run deficits and must fund all services and infrastructure through taxes, fees, and other revenues. Ottawa is facing significant growth pressures, with its population projected to increase by approximately 402,000 people by 2046, reaching 1.41 million residents. This growth will require nearly 194,800 additional private dwellings and expanded infrastructure, placing increased demands on water, wastewater, transit, roads, and emergency services. 

While the City works to manage affordability, it is important to recognize that many cost pressures are outside municipal control. Rising mortgage rates, utility costs, and general inflation affect household budgets but also increase the cost of delivering municipal services. Construction costs and regulatory requirements add further pressure. These external factors, combined with limited provincial and federal funding, make it challenging to maintain service levels without adjustments to local property taxes and fees. To meet these needs while maintaining affordability, the Draft 2026 Operating and Capital Budget proposes an overall property tax increase of 3.75 percent, which includes a citywide levy of 2 percent, a 5 percent levy for Ottawa Police Services, and an 8 percent levy for Transit Services. In addition, water, wastewater, and stormwater rates will increase by an average of 4.5 percent, the garbage fee will rise by 10 percent, and transit fares will increase by 2.5 percent. These adjustments are necessary to sustain essential services and infrastructure. 

The City is taking significant steps to limit the impact on residents. Efficiency savings of $252.7 million have been achieved during this term of Council, avoiding an estimated 12 percent tax increase. Additional revenues from assessment growth, estimated at 1.6 percent, and the strategic use of reserves and debt within strict fiscal limits further reduce the burden on taxpayers. The Draft 2026 Budget reflects a careful balance between affordability and the need to maintain essential services and infrastructure. Without these measures, service quality and reliability would decline, leading to higher costs in the future. 

 Residents are encouraged to provide feedback through upcoming public consultations to ensure the City’s approach continues to align with community priorities.