Basic Budget Information
Budget basics
Every year, the City of Ottawa produces a municipal budget. One of the City’s most important documents, the budget is the blueprint that defines how resources are collected and allocated. The overall budget comprises two main components – the Operating Budget and the Capital Budget.
Operating Budget
Every City program and service is funded through the City’s operating budget, which is designed to ensure the dependable delivery of a broad array of programs and services that residents rely on every day. Your municipal government is responsible for emergency services (fire, police and paramedics), roads, clean water, parks and recreation, public health programs, garbage and recycling programs, libraries and the buses that take residents to work and home. The Operating Budget funds all this and much more.
To keep Ottawa both affordable and prosperous, City staff needs to determine how best to deliver all these services while balancing revenues and expenditures. Given Ottawa’s size, that’s not as simple as it might sound.
Ottawa is one of the largest cities in Canada – larger than the areas of Toronto, Montreal, Vancouver, Calgary and Edmonton combined. Ottawa covers an area of 2,760 square kilometres. Only 10 per cent of that is urban while the remaining 90 per cent is agricultural land, villages, marginal and forested lands, and wetlands. Given the sheer scale of the city, it’s no wonder that a majority of City funds are spent on delivering existing services, many of which are available 24 hours a day, 7 days a week.
Capital Budget
In order to progress and grow, Ottawa must also look beyond simply providing existing services. A City needs to be guided by a clear and overarching vision of what it is to become.
City infrastructure is funded through the Capital Budget. The bulk of that funding goes to maintaining and rehabilitating existing infrastructure as identified in the Comprehensive Asset Management analysis. As funding allows, the City continues to fund growth, building new infrastructure and investing in the future. The City adds between $600 million and $800 million worth of new capital to Ottawa’s existing asset base every year – from buses and vehicles to water pipes, , roads to trunk sewers, from street lighting to libraries. These are investments that residents and businesses will benefit from for years to come and which contribute to the growth of Ottawa’s economy and quality of life.
The Capital budget also funds Council’s Strategic Initiatives, which support the Term of Council Priorities.
Developing the budget
With direction from Council, the City’s Finance Services Department is responsible for assisting departments in developing their detailed draft budgets every year. A series of budgets are tabled, broken down by category so that the various City Committees responsible can review and discuss what is proposed and ensure everything included complies with existing City plans.
The City must maintain a balanced operating budget. The Municipal Act prohibits the City from running a deficit on operating expenditures. The city can only borrow funds and incur debt for the Capital Budget.
During development of the operating and capital budgets, Council has some flexibility for reallocating or reprioritizing funds between programs and services to address emerging issues. Given these limits on discretion and the financial realities of limiting tax increases to residents, it is difficult to address all these issues or to implement significant changes from year to year.
Learn about the budget - video
How the City Budget Works - Video
Get informed about how the City budget works and how you can get involved.
Watch a short video and learn the basics of how the City budget works.
We always hear about them, and often this can feel like another language all together.
Before we get started, there is important information you should know. Ontario cities like Ottawa receive only 9% of all taxes collected, but are responsible for over 50% of the infrastructure.
Let’s start by looking at what the word budget means…Simply put, it is a planned itemized summary of money that is coming into to the City and how that money is spent for a specific period of time.
It is very important to note that provincial government legislation in Ontario states money coming in equals money going out also known as Revenue equals Expenditures...or a balanced budget.
The City of Ottawa provides more than 100 services to the citizens of Ottawa, so City Council and Administration always have to make difficult decisions to ensure this balancing takes place.
There are two main components of the budget when looking at the “money going out” side of
the scale. Operating pays for all the day-to-day activities of the Corporation: this includes items such as: salaries and wages, utilities, supplies, fuel, and insurance - just to name a few.
The Capital budget pays for all the new big investments or the rehabilitation of current assets under the City’s control.
So let’s focus on how the city collects to pay for all these services.
For every dollar that comes into the city... 53 cents comes from property taxes, 18 cents from provincial grants, and 29 cents from user fees and other sources.
So, now we have learned what a budget is, how cities collect money and how they spend it.
Now let’s take a look at how these pieces work together: Money comes in through property taxes, grants & subsidies, and user fees. The money collected is required for both the operating and capital budget.
We've already talked about the operating budget, including day to day expenses, but it also includes money for funding capital budgets.
The Capital budget pays for all the new big investments or the renewal or rehabilitation of city assets and infrastructure.
This connection is made through 2 methods: the Reserve Fund method which sets aside funds to pay for capital projects on a cash basis. These are usually projects that are paid for in the short term such as a road widening or replacement of a sewer line. Or the debt payment
Ok. So let’s recap.
One - A budget is a plan for money coming in and money going out. There are two building blocks
to the City Budget: Operating and Capital.
Two - The operating budget is like your paying your house bills to keep the lights on. Just like
in a normal household, our bills go up with inflation.
Three - The capital budget is like your major outlays: vehicles, house, renovations etc.
Four - Money comes in from three sources: Property Tax Levy, User Fees, and Grants and Subsidies.
Five - Money coming in is used to deliver over 100 services to City residents.
Six - City Council and Administration, with the input of the public, decide how best to balance the City budget guided by Provincial legislation.
And that, is how your City develops its budget.
The budget process
Get involved in the budget process- key steps
A key component to developing the budget is hearing from you! To help you better understand how Ottawa plans its spending every year – and how you can get involved – we have broken down some of the key steps that go into developing the City’s budget.
Develop budget guidelines and priorities
This occurs at the start of a 4 year Council term. Guidelines and priorities are derived from several key documents including the Long Range Financial Plan, the Fiscal Framework and the Strategic Plan.
Set budget timetable
This occurs in the summer or early fall. It involves the Council approval of the Budget Directions report which provides the direction for annual City budgets. It outlines dates for the tabling of the draft budget and approval of the budget. Questions can be directed to your member of Council.
Draft budget preparation
In the summer and fall, the draft budget is created. During this period, members of the community can provide input in a variety of ways including online tools and surveys, Councillor led public consultation sessions and communication with the Mayor and Council.
Draft budget presented to City Council
In November, the draft budget is presented to Council, and the public. In the weeks following, the budget is reviewed by the Standing Committees. Each Standing Committee reviews part of the City budget. Citizens have the opportunity to register and make a presentation at any of the Standing Committee meetings.
The draft budget, and the schedule for the standing committee meetings are published on Ottawa.ca.
Approve the final budget
Council approves the entire budget in early December. The approved budget details are published on ottawa.ca in the new year.
Note: In an election year, this is delayed until the new year.
Get involved in the budget process - Have your say
There are many ways to stay informed and participate in the budget process
- Contact your Councillor at any time during the year
- Participate in on line surveys and tools on Ottawa.ca during the budget process
- Attend Councillor led consultation sessions during the budget process
- Attend or register to present at a Standing Committee budget meeting
- Watch the Council meetings
- Follow Social media updates
Table of City Services and Standing Committee reporting structure
City Services and where they report to - Standing Committee Reporting Structure
Each City service reports to a Standing Committee. Below is a list of City services, department names and the name of the Standing Committee that each service reports to.
| City Service | Department Name | Standing Committee Name |
|---|---|---|
| Auditor General | Office of the Auditor General | Audit Committee |
| Building Code Services | Planning, Real Estate and Economic Development Department | Planning and Housing Committee |
| By-Law & Regulatory Services | Emergency and Protective Services Department | Emergency Preparedness and Protective Services Committee |
| Children's Services | Community and Social Services Department | Community Services Committee |
| City Clerk | City Clerk | Finance and Corporate Services Committee |
| City Manager's Office | City Manager's Office | Finance and Corporate Services Committee |
| Climate Resiliency and Natural Systems Policy | Planning, Real Estate and Economic Development Department | Environment and Climate Change Committee |
| Committee of Adjustment | External Boards and Agencies | Specific Board/Agency meeting |
| Community Funding | Community and Social Services Department | Community Services Committee |
| Community Recreation & Cultural Programs | Recreation, Culture and Facility Services Department | Community Services Committee |
| Community Safety and Well-Being Plan | Community and Social Services Department | Community Services Committee |
| Complexes, Aquatics, & Specialized Services | Recreation, Culture and Facility Services Department | Community Services Committee |
| Corporate Finance | Finance and Corporate Services Department | Finance and Corporate Services Committee |
| Corporate Real Estate Office | Planning, Real Estate and Economic Development Department | Finance and Corporate Services Committee |
| Crime Prevention | External Boards and Agencies | Specific Board/Agency meeting |
| Development Review Process (Rural) | Planning, Real Estate and Economic Development Department | Agriculture & Rural Affairs Committee |
| Economic Development | Planning, Real Estate and Economic Development Department | Finance and Corporate Services Committee |
| Elected Officials | Elected Officials | Finance and Corporate Services Committee |
| Equity Portfolios (Corporate Diversity and Inclusion Plan, Anti Racism Strategy, Indigenous Relations, Women and Gender Equity Strategy) | Community and Social Services Department | Community Services Committee |
| Facility Operations Service | Recreation, Culture and Facility Services Department | Community Services Committee |
| Financial Strategies, Planning and Client Service | Finance and Corporate Services Department | Finance and Corporate Services Committee |
| Fleet Services | Finance and Corporate Services Department | Transportation Committee |
| Forestry – Tree Planting and Maintenance | Public Works Department | Environment and Climate Change Committee |
| Forestry – Urban Forest Management Plan, Tree Protection By-law | Planning, Real Estate and Economic Development Department | Environment and Climate Change Committee |
| General Manager and Chief Financial Officer & Business Support Services - Finance and Corporate Services Department | Finance and Corporate Services Department | Finance and Corporate Services Committee |
| General Manager & Business Support Services- Emergency & Protective Services | Emergency and Protective Services Department | Emergency Preparedness and Protective Services Committee |
| General Manager & Business and Technical Support Services- Infrastructure and Water Services Department | Infrastructure and Water Services Department | Environment and Climate Change Committee |
| General Manager & Business Support Services- Infrastructure and Water Services Department | Infrastructure and Water Services Department | Environment and Climate Change Committee |
| General Manager & Business Support Services- Planning, Real Estate and Economic Development Department | Planning, Real Estate and Economic Development Department | Finance and Corporate Services Committee |
| General Manager & Business Support Services- Recreation Culture and Facility Services | Recreation Culture and Facility Services Department | Community Services Committee |
| General Manager & Business Support- Services Social Services | Community and Social Services Department | Community Services Committee |
| General Manager & Business Support Services – Transit Services | Transit Services Department | Transit Commission |
| Heritage and Urban Design | Planning, Real Estate and Economic Development Department | Built Heritage Committee; Planning and Housing Committee |
| Housing – Capital (development / redevelopment of new affordable, supportive and transitional housing) | Community and Social Services Department | Planning and Housing Committee |
| Housing – Operations (policies related to administration and funding of existing social housing programs, emergency shelters, supportive housing and homelessness programs) | Community and Social Services Department | Community Services Committee |
| Human Resources | Finance and Corporate Services Department | Finance and Corporate Services Committee |
| Information Technology Services | Finance and Corporate Services Department | Finance and Corporate Services Committee |
| Infrastructure Master Plan | Infrastructure and Water Services Department | Transportation Committee |
| Legal Services | City Manager's Office | Finance and Corporate Services Committee |
| Light Rail Stage 2 Planning and Implementation Program | Transportation Services Department | Finance and Corporate Services Committee |
| Long-Range Land Use Planning | Planning, Real Estate and Economic Development Department | Planning and Housing Committee |
| Long Term Care | Community and Social Services Department | Community Services Committee |
| Ottawa Fire Services | Emergency and Protective Services Department | Emergency Preparedness and Protective Services Committee |
| Ottawa Paramedic Service | Emergency and Protective Services Department | Emergency Preparedness and Protective Services Committee |
| Ottawa Police Service | External Boards & Agencies | Specific Board/Agency meeting |
| Ottawa Public Health | External Boards & Agencies | Specific Board/Agency meeting |
| Ottawa Public Library | External Boards & Agencies | Specific Board/Agency meeting |
| Parking Services | Public Works Department | Transportation Committee |
| Parks & Facilities Planning | Recreation Culture and Facility Services Department | Community Services Committee |
| Parks Maintenance | Public Works Department | Community Services Committee |
| Payroll, Pension and Benefits | Finance and Corporate Services Department | Finance and Corporate Services Committee |
| Planning Services | Planning, Real Estate and Economic Development Department | Planning and Housing Committee |
| Public Information and Media Relations | City Manager's Office | Finance and Corporate Services Committee |
| Public Policy Development - Emergency and Protective Services | Emergency and Protective Services Department | Emergency Preparedness and Protective Services Committee |
| Public Safety Service | Emergency and Protective Services Department | Emergency Preparedness and Protective Services Committee |
| Revenue Services | Finance and Corporate Services Department | Finance and Corporate Services Committee |
| Right of Way, Road Cut Permits | Planning, Real Estate and Economic Development Department | Transportation Committee |
| Road Renewal | Planning, Real Estate and Economic Development Department | Transportation Committee |
| Roads Services | Public Works Department | Transportation Committee |
| Rural Affairs | Planning, Real Estate and Economic Development Department | Agriculture and Rural Affairs Committee |
| Service Ottawa | Finance and Corporate Services Department | Finance and Corporate Services Committee |
| Service Transformation | City Manager's Office | Finance and Corporate Services Committee |
| Social Services | Community and Social Services Department | Community Services Committee |
| Solid Waste Services | Public Works Department | Environment and Climate Change Committee |
| Stormwater Services | Public Works Department | Environment and Climate Change Committee |
| Supply Services | Finance and Corporate Services Department | Finance and Corporate Services Committee |
| Traffic Services | Public Works Department | Transportation Committee |
| Transit – LRT, bus and Para | Transit Services Department | Transit Commission |
| Transportation Planning | Planning, Real Estate and Economic Development Department | Transportation Committee |
| Water Services | Infrastructure and Water Services Department | Environment and Climate Change Committee |
| Wastewater Services | Infrastructure and Water Services Department | Environment and Climate Change Committee |
How does the City compare with other municipalities
Find out how the City budget affects your property taxes, and what your taxes pay for.
How the City of Ottawa compares
| City | 2013 | 2014 | 2015 | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | Cumulative Total | Compounded Total |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Ottawa | 2.09% | 1.91% | 2.00% | 2.00% | 2.00% | 2.00% | 3.00% | 3.00% | 3.00% | 3.00% | 2.50% | 26.50% | 29.92% |
| Toronto | 2.00% | 2.23% | 2.75% | 1.30% | 3.29% | 2.91% | 3.58% | 2.00% | 0.51% | 2.90% | 5.50% | 28.97% | 33.00% |
| Edmonton | 3.30% | 4.92% | 5.70% | 4.10% | 3.10% | 3.20% | 2.60% | 2.08% | 0.00% | 1.90% | 4.96% | 34.26% | 39.95% |
| Calgary | 5.50% | 5.00%* | 4.20% | 6.10% | 0.00% | 3.80% | 3.45% | 1.50% | -1.66% | 3.61% | 5.50% | 32.00% | 43.48% |
| Vancouver | 2.00% | 1.90% | 2.40% | 2.30% | 3.90% | 4.24% | 4.50% | 8.20% | 5.00% | 6.35% | 10.70% | 51.49% | 64.82% |