Proposed 2026 Budget Directions, Timeline and Consultation Process

Council was asked to

1. , as amended That Council approve the following: The approach and timetable for consultation and consideration of the 2026 Budget as outlined in the report. The following directions for developing the Draft 2026 Budget: That the Draft 2026 Municipal Budget be developed in accordance with Section 290 of the Municipal Act, which requires municipalities to prepare and adopt a balanced budget, ensuring that total expenditures do not exceed total revenues. To balance the City’s expenditures, funding sources include grants from other levels of government, fees and service charges (including rates and fares), property taxes, payment in lieu of taxes, and reserves. That the Draft 2026 Municipal Tax Supported Budgets be developed with an overall net tax requirement increase of no more than 3.75 percent including: The City-wide tax levy increase of up to 2.9 percent, which includes funding for City-wide tax supported services, Library and Public Health, and that Council recommend that the Library and Public Health Boards develop their draft budgets based on their pro rata share of this. The Ottawa Police Services levy be increased between 2.9 percent and 6.5 per cent and that Council recommend that the Police Services Board develop their draft budget based on this. That the municipal tax supported services include a list of budget efficiencies for the Draft 2026 Budget. To date the City has avoided an additional 10 per cent tax increase over this Term of Council through $207.5 million of achieved savings. These efficiencies reduce the overall tax supported net requirement while maintaining service and balancing affordability. That Council recommend that the Library and Public Health Boards develop their draft budgets to include a list of budget efficiencies to reduce the overall tax supported net requirement. That Council recommend that the Ottawa Police Services Board develop their draft budget to include a list of budget efficiencies to reduce the overall tax supported net requirement. That the Draft 2026 Transit Budget be developed in consideration of the continued path to financial sustainability, work of the Transit Long-Range Financial Plan Working Group and advocacy for support from other levels of government, including the provincial commitment to upload the Ottawa LRT as announced in the Province of Ontario’s 2025 Budget, and the following items: A transit levy increase of between 3 and 15 per cent A fare increase between 2.5 and 7.5 per cent A list of operating efficiencies to reduce the overall fare and transit tax levy requirement Identify a list of capital investment deferrals for consideration as part of the tabled Draft 2026 Transit Budget Identify any funding related to the provincial commitment to upload the Ottawa LRT Identify federal funding from the Capital Plan under the Baseline Funding Stream of the Canada Public Transit Fund (CPTF) Identify any other levers for consideration as part of the tabled Draft 2026 Transit Budget That the assessment growth taxation revenues generated from new properties be estimated at 1.6 per cent of the current taxation for 2025 and that Council recommend that the Library, Public Health, and the Police Services Boards develop their budgets within this allocation. That City user fees and charges increase in accordance with the direction outlined in the Fiscal Framework or the Long-Range Financial Plans. That the garbage fee be increased in accordance with the approved Solid Waste Services Master Plan and Solid Waste Long-Range Financial Plan, reflecting a 10 per cent increase in 2026 and to add a list of operating efficiencies to reduce the overall garbage fees. That the Draft 2026 Capital Budget be developed in accordance with the direction outlined in the 2024 Development Charges (DC) Provisional Background Study, Long-Range Financial Plans and Fiscal Framework. That the Draft 2026 Rate Supported Budget be developed in accordance with the approved 2025 Long-