Pathway to recovery:

Investing in our
people and communities
 Strong Financial Management
• Successive Councils have made fiscal prudence and
financial sustainability a priority:
• Long Range Financial Plans
• Fiscal Framework
• Strategic Asset Management Plan
• Reserve Management Plan
• Long Range Financial Plan – Housing Services
• Ongoing: Successful efficiency programs that strengthen front-
line service and absorb annual growth to the degree possible

2
 Our Finances
• Sound financial position prior to COVID-19:
• Healthy balance of reserves, low debt levels and servicing costs
• Strong City credit rating, proven financial discipline
• Lean Organization: City Administration costs are 3% of overall budget
• Prudent and balanced approach while continuously improving and
investing in our future
• COVID-19 results in significant financial challenges in 2020-
2022 and potentially beyond, throughout COVID-19, City has
been proactive
• Leverage 2020/2021 financial mitigations and funding from senior
levels of government in 2022

3
 2022 Budget Considerations
• COVID-19 Impacts included in 2022 budget with assumed funding
from the tax stabilization reserve, senior levels of government
• Financial mitigation strategies implemented in 2020 and 2021 can
be leveraged in 2022 if backstop funding is not forthcoming
• Minimal growth of FTEs
• Inflationary and contract increases
• Long Range Financial Plans (LRFP) impacts

4
 Approved Budget Directions
• Municipal tax increase of 3.0%
• Annual additional taxation revenues from growth increased
from 1.4% to 1.7%
• User fees and charges increase in accordance with Fiscal
Framework or the Long-Range Financial Plan V including
incremental COVID-19 cost recovery
• Rate-supported budget developed in accordance with the
approved Long Range Financial Plan V

5
 2022 Budget - Financial Mitigations
• Conducted a thorough review of financial mitigation measures
• Leveraged those with no front-line service impact to absorb base
pressures, offset growth-related pressures and COVID-19 costs
• Discretionary spending and hiring pauses will continue in
2022 to assist in lowering expenses
• Additional budget reduction strategies have been initiated in
parallel to this budget process to be used if required
• Further mitigation measures will have impacts on reserves, capital
projects and service levels

6
 Approximate Tax Bill Impact*
Urban Home Rural Home Commercial Property
Average Average Average
Assessment: Assessment: Assessment:
$415,000 $415,000 $460,000
2022 Increases
City Wide $65 $61 $132
Police $19 $19 $38
Transit $35 $11 $70
Total $ Change $119 $91 $240
% Change 3.0% 2.8% 3.0%

* Does not reflect any impact from tax policy or reassessment

7
 Approximate Annual Water Bill Impact
Urban Connected Rural Non-Connected
Area 2021 2022 % Change 2021 2022 % Change

Water $370.80 $381.96 3.0% N/A N/A N/A

Wastewater $331.56 $343.80 3.7% N/A N/A N/A

Stormwater $154.80 $167.30 8.1% $77.40 $83.65 8.1%

Total $857.16 $893.06 4.2% $77.40 $83.65 8.1%

$ Change $35.90 $6.25

8
 2022 Total Expenditures
$4.14 Billion - By Service
General Government
Water / Sewer / Solid 6.3%
Waste 13.1% Parks, Recreation,
Cultural & Building
Services
Ottawa Police 5.9%
Services $259M
9.3% $246M Emergency and
$543M Protective Services
Ottawa Public Library 8.2%
1.4% $339M
$385M Planning, Building
Code & Economic
Development
Public Health 2.6%
3.0% $123M

Community & Social

$370M $774M Services
Capital Formation 18.7%
Costs
$242M
8.9%
$695M

Transit
Transportation 16.8%
5.9% 9
 2022 Total Revenue
$4.14 Billion - By Funding Source
Fees & Services
Other
Charges
1.9%
22.6%

$937M
Reserves
3.2%

Federal/Provinicial/ Property Taxes

Municipal Grant 47.4%
$862M
20.8% $1,962M

$172M
Payment In Lieu of
Taxes
4.1%

10
 2022 Draft Budget FTE Summary
Service Area 2022 Budget Request
City Services – Tax 37.63
City Services – Rate 13
Ottawa Public Library 9
Ottawa Police Service 0
Ottawa Public Health 0
Transit Commission 61
Total 120.63

11
 2022 Tax Budget Funding

Funding Capacity $129.1M Value ($M)

Assessment Growth $31.1

Taxation Revenues $56.1

User Fees / Revenues $40.3

Provincial Cost Sharing $1.5

12
 2022 Tax Budget Pressures
Value
Base Adjustments -$1.5M
($M)
Transit – Service hour reductions (11.0)
Transit – WSIB & 30 mins paid break 4.5
LED Conversion (0.6)
Splash Pads 0.3
Solid Waste (utilities, bin program and landfill) 0.9
Street Light control, maintenance, inspection 0.6
Paramedics 0.7
Public Safety 0.3
Reversal of low ridership savings in 2021 on Equipass subsidy 2.9

13
 2022 Tax Budget Pressures

Value
Maintain $109.7M
($M)
Labour costs (COLA, CPP, Contract Settlements) 47.2
Inflation for fuel, facilities, contracts, fleet, programs 34.0
Contribution to capital and debt servicing 17.6
Housing LRFP 1.5
Election reserve 9.1
Library automated materials handling 0.3

14
 2022 Tax Budget Pressures
Value
Growth $20.7M
($M)
Safer Roads Reserve Contribution 8.7
By-Law Services 1.4
14 Paramedics and 12 Ambulances 2.2
Crossing Guards 0.1
Waste Diversion 0.6
Roads 1.2
Community Funding Framework 1.6
Infrastructure Gap LRFP 1.0
Transit Line 2/4 1.0
New Parks 0.5
Library – Sunday Hours, Virtual Programming 0.7

15
 2022 COVID-19 Pressures

COVID-19 $161.6 M Budget Pressures Value ($M) 2022 Funding

Municipal 23.3 Tax Stabilization Reserve
Long Term Care 16.4 Provincial funding
Housing 12.0 Provincial funding (SSRF)
Ottawa Public Health (OPH) 47.7 Provincial funding
Transit 60.6 Provincial funding
Police 1.6 OPS Reserve
Total 161.6

16
 2022 Tax Budget Savings
Service Initiatives -$5M Value ($M)
Police – Savings (5.0)
Efficiencies -$13.6M
Operational Excellence (0.6)
City - Discretionary Staffing Pause (7)
City - Discretionary Spending Pause, program savings (6)
Note: 2021 Expenditure savings due to facility closures, reduction of non-
essential services and discretionary cuts were $33M

17
Water, Wastewater and Stormwater
Budget Highlights

Funding $22.6M Value ($M)

Rate / User Fees Increases 22.6
Net Pressures $22.6M
Maintain Services 1.9
Growth 0.9
Capital Contribution 19.8

18
Capital Budgets

19
 Capital Budget Framework
• 2022 budget and 2022-2025 forecast based on Transportation
Master Plan, Infrastructure Master Plan, 2019 Development
Charges Background Study and LRFP V for tax and rate

• Transit: $5 million increase contribution to capital

• Debt is limited to:

• Under 7.5% / 15.0% of own source revenues (Tax / Rate)

• Debt servicing 4% (Tax) and 12% (Rate) of own source

revenues

20
 2022 Capital Program
Transportation
$989.5 Million - By Service
Services Other Tax Supported
18.1% Services
20.5%

$179.5M $203.0M

Transit
Services
18.7% Drinking Water,
Wastewater &
Stormwater
$184.6M Services
$172.1M 17.4%

Integrated Roads
$35.6M $214.7M Water & Wastewater Services
21.7%
Police Services
3.6%
21
 2022 Capital Program
$989.5 Million - By Funding Source
Revenue
1.0%

Development Charges
$134.0M Cash & Debt
Reserves 13.5%
59.9%

$593.0M

$252.7M
Debt
25.5%

22
 2022 Capital Program
$989.5 Million - By Service Category
Regulatory & Service
Enhancements
11.3%

$112.0M

Growth
19.1%

$189.3M
Renewal of
$688.2M
City Assets
69.6%

23
 Reserve Fund Balances
Reserves 2022 Opening Projected Closing
Balance($M) Balance ($M)
Operating 120.1 110.2
Capital 162.3 156.6
Combined Operating/Capital 174.8 184.2
Restricted Reserves 92.4 86.1
Total City Reserves 549.7 537.1

24
Questions?

25