Memoranda issued by Finance and Corporate Services

Date: March 14, 2024

To: Mayor and Members of Council
From: Joseph Muhuni, Deputy Treasurer, Revenue Services, Finance and Corporate Services Department

Members of Council,

The purpose of this memo is to provide further information to Council on the City of Ottawa’s collection process for outstanding balances owed to the City and recent credit bureau reporting by a private debt collection agency.

City’s Collection Process
The City’s collection process has been in place for over twenty years and is summarized below:
• The City issues an invoice, bill, or ticket with a due date to pay the outstanding balance. A courtesy reminder is sent prior to the due date.
• If the due date is not met, the debt is referred to Revenue Services.
• Revenue Services sends a courtesy notice by mail within five (5) business days of receiving the debt, which provides an extended deadline and outlines enhanced collection methods available to the City, including referral to private debt collection agencies and credit reporting.
• If the City is unable to collect the debt after numerous courtesy contact attempts in the first six (6) months, the debt is referred to a private debt collection agency.

Private Debt Collection Agencies
Every five years, the City undergoes a competitive process to contract new private debt collection agencies. Outstanding balances are transferred to new agencies and courtesy notifications and collection activities continue. Therefore, longstanding debt owed to the City have had multiple agencies make several attempts to recover outstanding balances.

Credit Bureau Report
The most recent competitive process to contract private debt collection agencies was completed in January. One of the successful bids was Financial Debt Recovery (FDR). The company recently reported 103,000 unpaid Provincial Offences Act fines and 3,000 unpaid water bills to the credit bureau. Credit bureau reporting is a legal method and is widely used as a tool by financial institutions, lenders, and creditors to collect unpaid amounts. This can be an effective method when agencies are unable to contact the individual responsible for the debt. It is the responsibility of the public to update their address and contact information with the Provincial Offences Courts if they have outstanding offenses and the City. Of note, a conviction for a set fine under the Provincial Offences Act has no statute of limitations.

FDR has confirmed to the City that paid debts are removed from credit records.

Those who have received a collection notice or have had an item placed on their credit report by the third-party collection agency for outstanding arrears with the City can call Financial Debt Recovery at 1-877-300-9585 to request more information or make payment arrangements.

The City encourages residents to deal with invoices, tickets, and bills promptly to avoid collections activity. Where outstanding balances remain, it is the responsibility of the individual to update the Provincial Offences Courts and the City of their contact information.

Please do not hesitate to contact me.

Thank you,
Joseph Muhuni 

Date: February 28, 2024

To: Mayor and Members of Council
From: Isabelle Jasmin, Deputy City Treasurer, Corporate Finance

Members of Council,

The purpose of this memo is to inform Mayor and Members of Council of the new Sustainable Debenture Framework.
The City’s new Sustainable Debenture Framework supports the City’s ongoing commitment to advancing a more sustainable, resilient, and livable future as well as promoting environmentally sustainable development.

The City became the first Canadian municipality to issue a Green Bond in November 2017, and has since issued four Green Bonds totaling $1.027 billion. Building on the Green Debenture Framework, the City has developed an updated Sustainable Debenture Framework under which it may issue green, social, and sustainability debentures. The new framework is a key element in support of the City’s 2023-2026 City Strategic Plan, which aims to make the City more prosperous, sustainable, inclusive and resilient.

Under the updated Framework, proceeds from issuance will be used to finance or refinance eligible green and/or social projects that require a capital investment. The Framework includes updated eligibility criteria for its green use of proceeds categories along with new social use of proceeds categories including:

• Affordable basic infrastructure
• Capital assets to provide access to essential services
• Social and affordable housing assets
• Capital assets contributing to socioeconomic advancement and empowerment.

RBC Capital Markets and BMO Capital Markets served as Co-Sustainability Structuring Agents. Sustainalytics, a leading independent ESG (Environmental, Social and Governance) and corporate governance research, ratings, and analytics firm, was engaged to provide a Second-Party Opinion (SPO) on the Framework. Sustainalytics is of the opinion that the Framework is credible and impactful and aligns with the International Capital Market Association (ICMA) Sustainability Bond Guidelines 2021, Green Bond Principles 2021, and Social Bond Principles 2023.

Please contact me at extension 21312 or via email if you have any questions.

Regards,

Isabelle Jasmin
Deputy City Treasurer, Corporate Finance

Date: February 15, 2024

To: Mayor and Members of Council
From: Joseph Muhuni, Deputy City Treasurer, Revenue Services

Members of Council,

The purpose of this memo is to inform Mayor and Members of Council of the public consultation activities planned for the Water Rate Structure Review.

In December 2023, Council approved the Water Rate Structure Review Framework report (ACS2023-FCS-REV-0006). In the report staff committed to robustly engage with the public as part of the review. The objective of the review is to examine how the City recovers the cost to deliver water, wastewater and stormwater services. This review will be conducted using the following six guiding principles:

• Fairness and equity
• Affordability
• Transparency
• Financial sustainability
• Support economic development
• Promote conservation

Engagement Opportunities
Several broad community-facing engagement activities are planned to gather resident and stakeholder views regarding water, wastewater and stormwater billing and cost recovery approaches in line with the review framework.

Several engagement opportunities are planned over the next year, including:

• A survey which is available as of today for residents to provide feedback and will close in Q2 of 2024
• Public education campaign (Q2/Q3 2024)
• Rural and agricultural stakeholder engagement (Q2/Q3 2024)
• Sector stakeholder engagement – community associations, multi-residential, condo, industrial, commercial, and institutional (Q2-Q4 2024)
• Councilor engagement (Q3/Q4 2024)

Engagement opportunities will be promoted through social media, and an insert in water and tax bills. To engage with those who have limited access to the internet, alternative methods will also be available, such as written submissions and hard-copy surveys. Further information on engagement opportunities will be posted on the Water Rate Structure Review Engage Ottawa page as details become available.

Please consider sharing the survey and the Water Rate Structure Review Engage Ottawa page through your communication channels. I would welcome the opportunity to work with your office to promote these opportunities to your ward constituents.

After the review period has concluded, staff will consolidate the feedback from the consultations, review industry best practices, design a rate structure that aligns with the six principles and report back to Council in 2025 with the recommended changes to the water rate structure.

Please contact me at extension 21251 or via email if you have any questions or to discuss opportunities to promote these engagement options.

Regards,

Joseph Muhuni
Deputy City Treasurer, Revenue

Date: February 2 2024

To: Mayor and Members of Council
From: Isabelle Jasmin, Deputy City Treasurer, Corporate Finance, Finance and Corporate Services

Members of Council,

The purpose of this memorandum is to provide Council with the results of the Ottawa Investment Board (the” OIB”) selection process and Board member appointments. We will also provide information for Council on the next steps and migration to the Prudent Investor Standard for the investment of the City’s funds not immediately required.
On June 14, 2023, Council approved the Terms of Reference and Governance for the OIB (ACS2023-FSD-FIN-0005). On December 07, 2022, City Council approved the 2022-2026 Council Governance Review (ACS2022-OCC-GEN-0030). Given the subject matter expertise required to serve on the Ottawa Investment Board, delegation of authority was given to the following Selection Panel to assess applicants and appoint the public members of the OIB:

1. Deputy City Treasurer
2. Manager, Treasury
3. Senior Investment Officer
4. Treasury Risk Management and Systems Analyst
5. Senior Legal Counsel

We are pleased to announce that the following individuals have been appointed to the OIB:
1. Debra Alves
2. Ken Kember
3. Habib Saikali
4. Adam Harvey

Each OIB member brings a wealth of knowledge and experience in investment management and collectively they represent a range of skills and professional expertise to effectively manage and provide oversight for the City’s investments for funds not immediately required. Summary biographies for each appointed member are provided in appendix A.

In accordance with Ontario Regulation 438/97 Part II 17(5), and, as adopted in the Governance review; Cyril Rogers, Interim General Manager and Chief Financial Officer is appointed as the 5th member of the OIB and Chair of the Board.
In October 2023, the Selection Panel initiated a recruitment process for the four public positions on the OIB, with the period of application closing on October 27th, 2023. The selection process was completed in December and the four top candidates were selected and appointed in early January 2024.

A recruitment poster for these positions was posted on the City of Ottawa web page. The selection Panel then reviewed 15 applications received, and conducted four interviews to assess the applicants’ qualifications for the position, including the following:

• Executive level experience in a major public or private organization, municipal experience is an asset.
• Experience with pension funds, endowments, foundations, or corporate treasuries & investments.
• Professional skills relating to investment and/or debt management as well as an understanding of risk and financial administration within the framework of the prudent investor standard.
• Demonstrates understanding of an OCIO model of investment.
• Post-graduate degree in any one of the fields of: finance, business, economics, risk management, accounting, public administration, or related fields that may include certification such as CPA designation, CFA designation, Chartered Investment Manager designation or equivalent would be an asset.
• Possession of sound judgement and knowledge of good governance; and
• Understanding of the principles of public accountability and integrity.
Additionally, the Selection Panel considered any information disclosed by the applicants on how their lived experience and perspectives strengthened their application with respect to advancing equity, diversity and inclusion as Members of the Committee.

Over the next several months, staff will be preparing the board members for their new role and the next steps to establish an Investment Strategy for the City of Ottawa.

1. OIB Member orientation and training on administrative matters.
2. Draft the Statement of Investment Policies and Procedure (SIP&P) for OIB review and recommendation to Council Approval.
3. Procurement process for an Outsourced Chief Investment Officer (OCIO).
4. OCIO Investment Plan developed which adheres to the Council approved SIP&P.

Sincerely,

Isabelle Jasmin
City Treasurer, Corporate Finance, Finance and Corporate Services

Appendix A

Debra Alves
Debra Alves holds a Chartered Financial Analyst designation from the CFA Institute and an ICD.D designation from the Institute of Corporate Directors. She has 35 years of experience in pension investment and treasury management. From the years 2007 to 2018, she was the Managing Director & CEO of the CBC Pension Plan, a federally regulated, contributory defined benefit pension plan. Prior to holding the CEO position, she was the Strategic Investments Portfolio Manager responsible for Fund-wide asset mix determinations, direct portfolio management of an alternatives (private equity, infrastructure, and hedge funds) portfolio, and the oversight of externally managed public equity and fixed income portfolios.

Since retiring from the CBC Pension Plan in October 2018, she has been able to expand her activity on various boards and committees. She currently sits on the board of the Ottawa Climate Action Fund, the Carleton University Investment Committee and the Pension Investment Committees of the Ottawa International Airport, the Canadian Medical Association and the Canadian Forces Welfare and Morale Services.

Ken Kember
Ken Kember holds a Chartered Professional Accountant designation (CA/CMA). He has 36 years of accounting and corporate finance experience including 28 years at Export Development Canada (EDC). For 13 years, he held the position of Senior Vice President and Chief Financial Officer. As a key member of the executive leadership team, he helped develop and execute the strategic plan for the organization. He was a trusted voice around the executive and boardroom table, earning the confidence of five EDC presidents, four audit committee chairs, and three board chairs during his tenure as CFO.

As CFO, he had ultimate responsibility for EDC’s treasury investment and liquidity portfolios and served as co-chair of EDC’s pension committee, which had oversight responsibility for EDC’s pension plan investments giving him a strong understanding of investment governance, including statements of investment policy and procedures, and engaging and monitoring investment managers, custodians, and advisors. In addition, he was a voting member of EDC’s equity investment committee, and chaired FinDev Canada’s investment committee during his tenure as acting President of FinDev Canada.

Habib Saikali
Habib Saikali holds a Chartered Financial Analyst designation from the CFA Institute and a Chartered Professional Accountant designation (CMA). He has over 34 years of capital markets experience in the Mutual Fund, Brokerage, Investment Management Industries as well as Corporate Treasury. He has worked for financial institutions such as Scotia Capital Markets and TD Waterhouse and spent 10 years at Export Development Canada (EDC) as a Senior Portfolio Manager on the treasury desk with responsibilities for debt origination and management of the liquidity portfolio. He is currently the Chief Investment Officer of IP Investment Counsel Inc. and is responsible for over $590 million client funds. His responsibilities also include some compliance and financial responsibilities.  He has also been involved in the community having volunteered for his home hockey association as well as the Make-A-Wish Foundation of Eastern Ontario and Candlelighters of Ottawa in the past.

Adam E. Harvey
Adam E. Harvey, CPA, CA, ICD.D, is an independent corporate director helping stakeholder-driven organizations make better decisions and improve organizational performance, based on over 25 years of experience in Finance and Corporate Governance – as an independent corporate director, as an audit partner and business advisor, and as a Chief Financial Officer.

Adam serves in independent Board, Committee and/or advisory roles for the Canadian Medical Association, The Salvation Army in Canada and Bermuda, the Ontario Motor Vehicle Industry Council (OMVIC), The Ottawa Mission and the Ottawa Community Foundation, among others.

Previously, Adam served as Vice-President, Finance (CFO) of the Ottawa Community Foundation; as an audit partner, trusted business advisor and licensed public accountant with PricewaterhouseCoopers LLP (“PwC”; formerly, Coopers & Lybrand); and, as an auditor with the federal Office of the Auditor General.

A graduate of the Institute of Corporate Directors’ Directors Education Program (ICD.D), Adam is a Chartered Professional Accountant, Chartered Accountant (CPA, CA), and holds a Bachelor of Commerce (Honors) degree in Accounting and Finance from Carleton University. He has taught the related ICD module, “On Being an Effective Director – Hot Topics for Audit Committees” and has contributed to the wider business community in Canada as an author, lecturer and panelist

Date: January 25, 2024

To: Mayor and Members of Council
From: Joseph Muhuni, Deputy City Treasurer, Revenue Services

Members of Council,

The City is improving residents' access to information through the new Online Property Tax and Assessment Look-Up Tool that launched today. Residents can search for a property by municipal address or roll number to view the property's assessment value and property tax value for the current and previous year. This is public information and no private information such as the owner’s name, mailing address, school board support, or any occupant or tenant information will be accessible.

Every year the Municipal Property Assessment Corporation (MPAC) provides a hard copy of the Assessment Roll Books, which are stored at the City Hall Client Service Centre. In order to obtain a property's assessment value, residents had to appear in person to manually review the books. With the introduction of this new tool, users can now self-serve and access this information online, from anywhere, 24 hours a day, 7 days a week.

The property address, roll number, assessment, and tax classification and property taxes on a property are public information. The application displays the taxes that are levied in May each year. The tool does not provide account balances, supplemental taxes or any other information such as the Vacant Unit Tax and Assessment related decisions. The assessment and property tax information will be updated annually in June. This tool is now available at Ottawa.ca/taxes
Users may continue to visit the City Hall Client Service Centre to view the Roll Books in person if preferred for assessment information.

If you have any questions or concerns, please do not hesitate to contact me directly.

Sincerely,

Joseph Muhuni,
Deputy City Treasurer, Revenue Services

Date: December 22, 2023

To: Mayor and Members of Council
From: Cyril Rogers, Interim General Manager and Chief Financial Officer, Finance and Corporate Services

Members of Council,

The purpose of this memo is to provide an update as described in detail in a memorandum dated September 19, 2023. The province reserved funds to make a One-Time Municipal PILT Mitigation Payment to eligible municipalities in recognition of revenue implications for the 2021, 2022 and 2023 municipal fiscal years. The one-time payment from the Province of Ontario will cover the City’s shortfall for the last three years.

The City has received confirmation that the Province of Ontario has confirmed a one-time payment of approximately $35 million to the City of Ottawa because of a reduction in the Payment in Lieu of Taxes (PILTs) from properties owned by the Federal Government, the NCC and Canada Post (Federal Properties).

This is a temporary mitigation, and the impacts on the City’s revenue will continue without a long-term solution. As such, the City’s current Federal Court applications for 2021 and 2022 shortfalls will proceed, and Revenue Services will continue to seek a decision from the Federal Court to affirm the legislatively prescribed rate for the PILTs for 2023 and future years. If the City is successful in the Federal application, the One-Time Municipal PILT Mitigation Payment is to be reimbursed to the Province of Ontario.

This one-time funding will be part of the finalization of the 2023 operations and be reported as part of the Disposition of the 2023 Tax and Rate Supporting Operating Surplus/Deficit.

The City will continue to keep the Mayor and Members of Council apprised.

Should you have questions, please do not hesitate to contact me directly.

Sincerely,

Cyril Rogers
Interim General Manager and Chief Financial Officer
Finance and Corporate Services Department

Date: December 13, 2023

To: Mayor and Members of Council
From: Cyril Rogers, Interim General Manager and Chief Financial Officer, Finance and Corporate Services

Members of Council,

The purpose of this memorandum is to provide City Council an update on enhancements to the Vacant Unit Tax (VUT) declaration process following City Council direction on August 23, 2023 (motion 2023-19-09) to:

a) Improve and further simplify the declaration process:
b) Increase access by allowing declaration to be completed at Client Service Centres
c) Open the declaration portal earlier in December with notices to declare going out in January
d) Leverage data obtained in the first year to improve customer service and reduce the volume of late declarations

Staff have been analyzing the VUT data, and have made several enhancements to the online declaration form, such as:
• adjusting the order of questions to reduce declaration errors
• the elimination of drop down menus
• using more user-friendly questions
• improving My ServiceOttawa integration.

More improvements will be introduced in January, including:
• the ability to submit a declaration in-person at a client service center
• an updated guide and fact sheet which will be distributed to residents
• more in-person declaration opportunities
• a new video promoting the purpose and benefits of the VUT.

This year the VUT declaration portal will open early for residents who want to declare before the formal declaration period. The portal will open on December 14 with notices being distributed in January, along with a complementary robust communication campaign to formally launch the 3-month declaration period. The deadline to declare is March 21, 2024.

If you have any questions or concerns, please do not hesitate to contact me directly.

Sincerely,

Cyril Rogers
Interim General Manager and Chief Financial Officer
Finance and Corporate Services Department

Date: November 8, 2023

To: Mayor and Members of Council
From: Cyril Rogers, Interim General Manager and Chief Financial Officer, Finance and Corporate Services

Members of Council,

This memorandum is in response to motion 2023-23-04, approved by Council on October 25, 2023, directing staff to provide a memorandum to Council identifying what portions of the 2024 Draft Budget are resourcing non-mandated items.

A mandate can be defined as an official order to do something or the authority to carry out a policy by the electorate.

City services are mandated by legislation from other levels of government such as the Municipal Act of Ontario, Long-Term Care Home Act of Ontario, and Planning Act of Ontario. In addition to providing legislatively required services, municipal services/programs and service standards are established by policy approved by City Council. As such, these are also mandated services/programs that serve the expressed needs of our community, and often support residents that are most vulnerable or at high risk.

For example, under the Long-Term Care Act, 2021, municipalities are legislated to operate at least one long-term care home. Due to the elevated community demand, the City operates four homes housing 717 residents. One long-term care home is a French-language home and two operate Adult Day Programs which offer supervised programming and services to individuals living in the community.

Under the Child Care and Early Years Act, 2014, the City of Ottawa, as the Consolidated Municipal Service Manager (CMSM), is responsible for the planning and management of licensed child care and early years programs and services. The City is not mandated to directly provide and operate licensed child care, however the City operates 10 municipal child care centres which provide 387 child care spaces. These centres have a mandate to serve families who face various barriers and systemic challenges in areas of the city where there are insufficient child care spaces to meet demand.

The Municipal Act, 2001, dictates a minimum standard for the maintenance of municipal highways that the City must comply with. A Class 1 highway must be cleared within 4 hours of a 2.5 cm accumulation of snow. However, through the Council approved Winter Maintenance Quality Standards, City Public Works crews deploy immediately as accumulation begins for high priority roads, which includes highways. Public Works crews will also clear high priority roads within 2 hours versus the provincial standard of 4 hours. In addition, there is no regulation requiring that municipalities winter maintain sidewalks. However, through the Winter Maintenance Quality Standards, Ottawa’s sidewalks are cleared of snow within 16 hours of a 5 cm accumulation.

The Fire Prevention and Protection Act (FPPA), 1997 sets out the legislative and regulatory framework for the establishment of fire protection in Ontario, which is a mandated municipal responsibility. The FPPA states that every municipality shall provide fire protection services as it determines may be necessary in accordance with its needs and circumstances. Through the most recent Station Location Study in 2015 (ACS2015-COS-EPS-0021), Council approved the identified standards of response needed to address levels of risk throughout the City – the Standards of Cover. These standards are determined by Council and provide a total response time for the arrival of first on scene and arrival of the effective response force.

A comprehensive universal program review was conducted by the City of Ottawa following amalgamation, which included the identification of mandated municipal services. This review was a significant corporate undertaking in terms of both cost and resources, and identified all services mandated by legislation and City Council policy. At the time two City services were identified as non-mandated, Sponsorship and Events, and Communications, which represent approximately 0.1% of the operating budget. Since that time, mandated services have only increased with the evolution and implementation of new legislation and Council policy.

The City Budget is guided by Council-approved policy, such as the Development Charge Background Study, Long Range Financial Plans, the Fiscal Framework, Strategic Asset Management Plans, Reserve Management Plans, and the approved Service Review framework and principles.

Generally, the City’s budget process with regards to policy decisions on program or service changes has previously been addressed by Council in the 2009 budget process, which continues to provide guidance. In this regard, Motion 39/9, approved by Council on June 25, 2008, instructs that, for the purposes of the budget process regarding program changes and public review, “the City work towards a process where proposals for significant service changes, program additions or reductions should first be presented to the relevant Standing Committee and Council for approval, subject to confirmation during the budget process.”

Through Council’s approval of the City’s Service Review Framework in March 2023 (ACS2023- FCS-FSP-0001, Document 4), the City established policies and principles to assess services for review, identify potential improvements and determine the best way to deliver those services. Council also approved independent oversight of the reviews through establishing a service review working group, comprised of the Mayor, the Chair of the Audit Committee, and a Councillor at large. Additionally, service efficiency and competitiveness are part of the City’s objectives in all service delivery areas. The City’s continuous improvement efforts seek to enable more financially efficient and responsive operations by driving unnecessary cost and complexity out of the organization’s business processes through a focus on automation, standardization, and simplification.

In 2023, several service reviews were launched, including the Bus Route Optimization Review, Corporate Accommodations and Leases Review, Fleet Optimization Review, and Revenue Opportunities Analysis. These reviews are ongoing, and any cost avoidances and efficiencies realized are reflected in the 2024 Draft Budget. It is anticipated that additional savings, particularly from the Corporate Accommodations and Leases Review and the Revenue Opportunities Analysis, will be realized in 2024 to contribute to the development of the 2025 Draft Budget. Numerous other service review opportunities are being considered by the Service Review Working Group and work will continue throughout this Term of Council. A comprehensive public engagement strategy has also been developed to solicit input from residents on potential service delivery improvements to be launched on November 15th.

Any cost savings identified through the service review process will be reinvested into Council priorities for this Term. All mandated City services are in scope for service review and continuous improvement initiatives.

Thank you,

Cyril Rogers
Interim General Manager and Chief Financial Officer Finance and Corporate Services Department

Date: October 27, 2023

To: Mayor and Members of Council
From: Joseph Muhuni, Deputy City Treasurer, Revenue

Members of Council,

The purpose of this memo is to respond to the motion (OC2022-04/25) passed by City Council on December 14, 2022 requesting that staff report back to Council no later than October 30 with data related to the Vacant Unit Tax (VUT). This is the second of two memos to Council, the first was delivered on June 21, 2023 and provided preliminary data on the first year of the implementation of the VUT.

Updated Data Since June:

The one percent VUT charge was included in the 2023 final property tax bill in June for properties that met the definition of vacant under the by-law. The number of vacant units and revenue will continue to change over the next 10 months as we go through the appeal and audit phase.

For properties declared or deemed vacant, property owners had until September 15, 2023, to submit a Notice of Complaint for the 2022 occupancy year. As of that date, 2,982 Notices of Complaint were filed. Upon receiving a Notice of Complaint, staff conduct a review and within 90 days provide the property owner with a notice of determination which may result in a reversal of the VUT charge. As of October 26, 360 Notices of Complaint have been denied, 2,185 have resulted in the VUT charge reversed and 437 remain to be processed. Once a determination has been issued, property owners can file a Request for Review if they disagree with the results. The Request for Review is the final determination in the appeal process. As of October 26, the City has received 72 Requests for Review.

As of October 26, the number of vacant residential units for the 2022 occupancy year is 3,743. This includes the results of all appeals processed to date. Appendices I and II contain updated 2023 results, including a breakdown of vacant units by property type and ward. The VUT program includes an audit component to determine the validity of the declarations made. The audit program for the 2022 occupancy year has begun, with audits for 1,525 properties under way. If selected for an audit, property owners will be required to provide information and evidence to support their declaration. Properties which have been determined to be vacant through the audit process will receive a supplementary property tax bill with the one percent vacant unit tax charge on the assessed property value.

Between January and September 2023, staff have responded to 31,305 inquiries regarding the new VUT program. Fifty percent of the inquiries were for declaration support, 43 percent were general inquiries, and the remaining six percent were related to appeals. Eighty-three percent of these inquiries were received during the declaration period which ran from January 1 to April 30. The data suggests that 90 percent of residents were able to navigate the program successfully in the first year without having to contact the City.

A final report on the first year of the Vacant Unit Tax, including any enhancements to improve and simplify the declaration process will be presented to Council in fall 2024.

Declaration for 2023 - Timelines and Enhancements:

The declaration form for the 2023 occupancy year will be available starting mid-December, with a communications campaign rolling out in January 2024. Property owners will have until the standard deadline of March 21, 2024, to complete their declaration. Properties who have not declared by this date will be charged a $250 late declaration fee. The final deadline is April 30, 2024. City staff will be leveraging contact information collected from 2023 declarations to improve communications and reduce the number of late declarations.

Usability enhancements have been made to the declaration form and My ServiceOttawa, addressing feedback received from residents in the first year and usability analysis performed by VUT program staff. In addition, residents requiring support to complete the declaration form will be able to visit any Client Service Centre and complete the form in person.

Additional information on the 2024 declaration campaign will be provided to Council in December.

Thank you for your continued support. Please contact me at extension 21251 or via email if you have any questions.

Regards,

Joseph Muhuni Deputy City Treasurer, Revenue Services

Date: October 13, 2023

To: Mayor and Members of Council
From: Cyril Rogers, Interim General Manager and Chief Financial Officer, Finance and Corporate Services Department

Members of Council,

The purpose of this memo is to notify members of City Council that, in response to the evolving digital landscape and the increasing importance of safeguarding our information assets, the City is posting the Chief Information Security Officer/Digital Risk Officer (CISO/DRO) position within Finance and Corporate Services Department (FCSD).

To date in 2023, we’ve been focused on aligning our existing cybersecuity team to ensure a continued emphasis on the design and deliver of a comprehensive, effective and efficient suite of information technology, data and information security governance, and operations functions in support of enterprise service excellence. We are now proceeding with the next phase of this commitment.

The CISO/DRO role within FCSD is a pivotal addition to our organization's leadership team. This position will play a crucial role in ensuring the integrity, confidentiality, and availability of the information owned, controlled, or processed by our organization, while also managing the digital risks associated with our operations.

The CISO/DRO position is a significant step forward in strengthening our commitment to information security and risk management. Given the constantly evolving digital landscape and the critical role that technology plays in our operations, this addition is both timely and necessary. It is imperative that we have dedicated leadership to guide our efforts in safeguarding our information assets and digital infrastructure.

In an era where digital threats continue to evolve and grow, this position will provide us with the expertise and leadership required to ensure the City of Ottawa remains secure and resilient against cyber threats and digital risks. The CISO/DRO will not only work towards protecting the interests of the City but also enable us to adapt and thrive in the digital age.

The CISO/DRO position reflects our dedication to enhancing our cyber defenses and safeguarding the digital infrastructure that plays a vital role in serving our community.

Thank you,
Cyril Rogers Interim General Manager and Chief Financial Officer, Finance and Corporate Services Department

Date: September 15, 2023

To: Mayor and Members of Council
From: Isabelle Jasmin Deputy City Treasurer, Corporate Finance

Members of Council,

The purpose of this memorandum is to inform Mayor and Council of improvements to the City’s Annual Report and highlight the City’s first set of climate-related financial disclosures.

The Annual Report summarizes and explains the prior year’s financial results and contains the City’s audited consolidated financial statements. Significant changes were made to the 2022 Annual Report to make it easier to understand, more visually appealing, and provide more context about the organization, its financial health, and economic climate. New content in the report includes: a Land Acknowledgement and statements about the City’s commitment on reconciliation; an info-graphic on key demographic, economic and financial information; an overview of governance and the City’s organizational structure; awards won during the year; common language descriptions of important accounting terms; better visuals for financial information; and explanations of debt, reserves and other key elements supporting financial sustainability.

To continue the City’s leadership in addressing climate change and prepare for the anticipated accounting standard changes, the City adopted the Task Force on Climate-related Financial Disclosures (TCFD) for its 2022 Annual Report. A previous memo sent May 24, 2023, explains more about TCFD and its benefits. A dedicated section for TCFD starting on page 96 of the Annual report explains the City’s current governance, strategy, risk management practices and metrics & targets for climate change. Within the strategy section, important information regarding the cost of climate mitigation and climate adaptation is disclosed. The information in the disclosures serve as a starting point to understand capital investments required to meet the Council-approved GHG emission reduction targets by 2050 and the relationship between climate change and the cost to maintain public infrastructure in a state of good repair.

To date thousands of organizations worldwide in the private and public sector are at various stages of meeting TCFD’s reporting requirements. Notably, the federal government of Canada has endorsed a phased approach to adopting TCFD. The cities of Calgary, Edmonton, Mississauga, Montreal, Toronto, and Vancouver are also at various stages of meeting the reporting requirements. I am pleased to add Ottawa to the list of Canadian municipalities that have adopted the TCFD.

Sincerely, Isabelle Jasmin | Deputy City Treasurer, Corporate Finance

Date: September 11, 2023

To: Mayor and Members of Council
From: Cyril Rogers, Interim General Manager and Chief Financial Officer, Finance and Corporate Services

Members of Council,

As per the Proposed 2024 Budget Directions, Timeline and Consultation Process report (ACS2023-FCS-FSP-0011) being tabled at Council on Wednesday, September 13, 2023, the City’s 2024 draft budget will be tabled at Council on Wednesday, November 8, 2023, and considered for adoption by Council on Wednesday, December 6, 2023.

Technical Briefing

The Finance and Corporate Services Department will host a technical briefing for members of Council and the media on Monday, September 25, 2023, from 10 to 12 pm at City Hall (Champlain Room). The intent of this briefing is to enhance general knowledge and understanding of the City’s budget process, provide information to support Councillors in facilitating public consultations, highlight opportunities for public engagement and respond to questions related to the budget process.
Following the technical briefing, members of Council will receive a public engagement toolkit with materials to support their public consultations.

Public Consultations

To prepare for public consultations on the City’s 2024 draft budget, members of Council are requested to provide the following details on their planned consultation activities to Maria Belli (maria.belli@ottawa.ca) by October 20.

• Name(s) of Councillor(s) participating in the public consultation
• Date, time and location
• Identify if the session will be in-person, virtual or hybrid
  • For any virtual or hybrid meetings please provide any links to join or to sign-up (once available)
• Please indicate if IT on-site technical support is requested
• Request for a representative from Finance and Corporate Services Department to attend the session (please note if a bilingual presenter is required)

Staff Attendance at Public Consultations

Due to limited staff resources, public consultations hosted by multiple ward Councillors will be prioritized over single ward sessions when requesting a representative from Finance and Corporate Services to attend. Members of Council are highly encouraged to group their public consultations together in order to cover multiple City wards or regions (e.g. east, central, south, west). We will do our best to accommodate requests for representation.
Councillors are encouraged to invite representatives from other City departments to attend public consultations and should reach out to those specific departments directly.

ITS Info Sessions on Hosting Virtual Meetings and Technical Support for Public Consultations

Information Technology Services (ITS) will host two information sessions for Councillors’ assistants on how to host virtual meetings. The purpose of these sessions is to provide instructions and guidance on how to facilitate virtual or hybrid public meetings using the platforms recommended and supported by IT (Microsoft Teams or Zoom).

Session 1: Tuesday, October 3 at 1pm - Demonstration for hosting public consultations using Microsoft Teams.

Session 2: Wednesday, October 4 at 1pm – Demonstration for hosting public consultations using Zoom.

Invitations from ITS for both information sessions will follow at a later date.
ITS is also available to provide on-site technical support during any public consultations, whether they be virtual, hybrid or in-person. Please indicate whether IT support is requested when providing the details about your public consultation above.

Budget to Support Public Consultations

As in past years, $250 per ward is allocated in the Council administration budget to support public consultation. Please submit all invoices to Chantal Leduc (chantal.leduc@ottawa.ca) in the normal fashion, but clearly indicate that the expenses are related to the budget consultation.

Members of Council are reminded that additional funds are available on a first-come, first-served basis to provide accessible formats and communication supports when corresponding with their constituency, including consultations. For details on how to access these funds, please contact Council Support Services (councilsupportservices@ottawa.ca).

Online Engagement

The schedule for all Councillor-led public consultations will be posted on ottawa.ca/budget and Engage Ottawa and promoted via the City’s social media and other corporate communications channels.

Ottawa residents will have the opportunity to complete a short survey on Engage Ottawa from September 13 to October 27, 2023, where they can identify their priorities for the 2024 budget.

Residents will have the opportunity to submit questions regarding the draft budget between November 8 and December 5, 2023.

Budget Considerations and Ward Priorities

The City Manager’s Office have scheduled meetings with members of Council, the Mayor, City Manager and Chief Financial Officer to discuss budget considerations and ward priorities.

If you require further information with respect to the information in this memorandum, please feel free to contact me at cyril.rogers2@ottawa.ca.

Cyril Rogers
Interim General Manager and Chief Financial Officer, Finance and Corporate Services

Date: July 27, 2023

To: Mayor and Members of Council
From: Joseph Muhuni, Deputy City Treasurer, Revenue

Members of Council,

The purpose of this memo is to inform Mayor and members of Council of the tax relief available to residents affected by the July 13th tornado.

Many properties were affected by the two tornados that occurred on July 13, 2023. Revenue Services offers a Tax Mitigation Program for Barrhaven residents where the structures on their properties have been damaged from the tornado.

City residents that have structure damages due to the tornado on July 13, 2023, can make application to cancel, reduce or refund part of the 2023 property taxes levied on their property if their structure was damaged by the tornado to render it substantially unusable; or damage requiring repairs preventing the normal use of a building for at least 3 months.

Residents must submit an application on or before February 29, 2024:

• Online: Property taxes cancellation, reduction or refund | City of Ottawa
• By email: taxadjustments@ottawa.ca
• By mail:
  City of Ottawa Revenue Services c/o Tax Adjustments Section
  100 Constellation Drive, 4th Floor East, Ottawa, ON K2G 6J8
• By fax: 613-580-2457

Forms are available online or in print form by contacting our office at the above email address or calling Revenue Services at 613-580-2444. Residents will be required to provide details about the damage and repairs, including pictures and insurance reports.

We encourage residents to contact us should they have any questions or concerns about the application form or process. We are here to help.

If you have any questions or concerns on this matter, please do not hesitate to contact me directly.

Sincerely,
Joseph Muhuni, Deputy City Treasurer, Revenue Services,
Finance and Corporate Services Department

Date: June 30, 2023

To: Mayor and Members of Council
From: Cyril Rogers, General Manager and Chief Financial Officer, Finance and Corporate Services Department

Members of Council,

The purpose of this memo is to advise Council that the financial information on municipally-funded grants and contributions for 2022 were published June 30 on Ottawa.ca, in accordance with the Grants and Contributions Policy.

The Grants and Contributions Program

The City is committed to community-based initiatives that improve the well-being and quality of life of Ottawa residents and ensure the conservation of our environment, culture and heritage. By supporting the activities of not-for-profit organizations and individuals who are embedded in the communities they serve, the City's Strategic Plan and Term of Council Priorities are being advanced significantly.

Grants and contributions provide real value for money to the City. They help the City and Council achieve many social, economic, environmental and cultural objectives by leveraging the community-based activities of individuals and not-for-profit organizations.
In 2022, a total of $65,563,928.68 was provided through 44 programs to 233 organizations and 2,852 private households and individuals.

Publishing on Ottawa.ca

The reports on 100 per cent municipally-funded grants and contributions for 2022 were published today on Ottawa.ca under the following funding portfolios:

• Economic Development
• Development, Planning and Building
• Community and Social Support
• Cultural
• Environmental
• Recreation
• Rural
• Other

Each portfolio has a separate webpage that provides the specific report for 2022, as well as a list of the grant programs in the 2022 report.

The Grants and Contributions Policy provides that financial information for annual grants and contributions wholly funded by the City must be published on Ottawa.ca at the end of June, based on the prior year’s disbursements.

Please do not hesitate to contact me if you have any questions or require further clarification.

Thank you,

Cyril Rogers

General Manager and Chief Financial Officer
Finance and Corporate Services Department

Date: June 21, 2023

To: Mayor and Members of Council
From: Joseph Muhuni, Deputy City Treasurer, Revenue

Members of Council,

The purpose of this memo is to respond to the motion (OC2022-04/25) passed by City Council on December 14, 2022 requesting that staff report back to Council no later than June 30 with data related to the Vacant Unit Tax (VUT).

The one percent VUT charge has been included in the 2023 final property tax bill due June 15, 2023, for properties that meet the vacant unit definition. The number of vacant units and revenue will continue to change over the next 14 months as we go through the appeal and audit phase. The final numbers will be available in the fall of 2024. Appendices I and II include a further breakdown of the declared vacant units by property type and ward.

Revenue Services received a total of 12,980-unit declarations after the March 16 standard declaration deadline which were considered late. These declarations would have been subject to a $250 late fee; however, the late fee is waived for 2023.

Following the extended deadline of April 30, the following were issued a VUT charge on the final tax bill. 

• 3,268 units declared vacant
• 2,836 units deemed vacant (no declaration received)

Property owners who wish to appeal their VUT charge can engage in a two-stage process. The first step is to file a Notice of Complaint. This form is available through Ottawa.ca/vut or can be accessed using a MyServiceOttawa account. Alternate and accessible options are available to complete all forms. The appeal process has been promoted through a Public Service Announcement and an additional bill insert which all property owners who have been charged the tax have received.

If a property owner did not complete a declaration and their property has been deemed vacant and charged the tax, they will be required to submit a declaration when filing the Notice of Complaint. The program administrator will review each Notice of Complaint and provide the property owner with a Notice of Determination. If a property owner disagrees with the result, they can file a Request for Review. Property owners have until September 15, 2023, to submit a Notice of Complaint for the 2022 occupancy year.

As of June 18, 2023, 32% or 1,909 notices of complaint have been filed. This is the first of two memos in response to the motion (OC2022-04/25) to provide data on the first year of the implementation of the Vacant Unit Tax. I will provide the second memo to Council before the end of October, including the number of notices of complaint received by the September 15 deadline, an update on the number of vacant units, the number of complaints and/or inquiries received from residents regarding the VUT program, and the number of declaration audits underway.

Thank you for your continued support. Please contact me if you have any questions.

Regards, 

Joseph Muhuni Deputy City Treasurer, Revenue

Appendix I – Vacant Unit Summary by Property Type

Appendix II – Vacant Unit Summary by Ward

Date: May 24, 2023

To: Mayor and Members of Council
From: Isabelle Jasmin, Deputy City Treasurer, Corporate Finance

Members of Council,

The purpose of this memorandum is to inform Mayor and Council of improvements to the City’s Annual Financial Report to be released in the third quarter (Q3) 2023. This continues the City’s leadership in climate change and prepares for the upcoming accounting standard changes the City will adopt regarding the sustainability reporting framework, the Task Force on Climate-related Financial Disclosures (TCFD).

The TCFD was released in 2017 by the Financial Stability Board after years of collaborative consultation with global stakeholders to establish standards for consistent reporting to enhance climate transparency and identify climate-related risks and opportunities. It is intended to support municipal stakeholders and decision-makers by incorporating reliable and consistent climate-related information into the City’s strategic, capital, and budgetary planning processes through a phased approach.

The TCFD disclosure recommendations are structured around four thematic areas that represent core elements of how organizations operate:

• Governance: disclosure of the organization’s governance structure for managing climate-related risks and opportunities and how these risks and opportunities are integrated into the organization’s decision-making processes.
• Strategy: disclosure of the actual and potential impacts of climate-related risks and opportunities in the short, medium, and long-term.
• Risk management: disclosure of the organization’s process for identifying, assessing, and managing potential climate-related risks.
• Metrics & targets: disclosure of the organization’s key metrics to monitor climate-related risks and reporting on progress towards climate-related goals.

The four disclosure recommendations will accompany the City’s audited financial statements in the Annual Financial Report. The TCFD reporting will also be closely tied to on-going and upcoming initiatives that advance the City’s climate change goals, including Operating and Capital Budgets, the Corporate Finance is working closely with the Climate Change & Resiliency Branch to develop a five-year plan to align with the TCFD recommendations. The work will be guided by best practices developed by the Chartered Professional Accountants of Canada’s (CPA Canada) recent publication: “Enhancing Climate-related Disclosure by Cities: A Guide to Adopting the Recommendations of the TCFD” .

A subsequent memo will be provided to Council to highlight the TCFD section in the 2022 Annual Financial Report in Q3 2023.

Should you have any questions please contact me directly.

Sincerely,
Isabelle Jasmin
Deputy City Treasurer, Corporate Finance

Date: April 28, 2023

To: Mayor and Members of Council
From: Joseph Muhuni, Deputy City Treasurer, Revenue

Members of Council,

I am pleased to provide a further update to City Council on the residential Vacant Unit Tax (VUT).

As of today, we have received approximately 320,074 completed declarations, representing 99 percent of residential properties required to submit a declaration.

The late declaration period closes on April 30. As you are aware, late fees are being waived this year. If a declaration is not received by April 30, the property will be deemed vacant, and the Vacant Unit Tax will be charged on the final Property Tax bill due in June.

A two-stage appeal process is available to property owners who wish to have their VUT charge reviewed. The first step is to file a Notice of Complaint. This form will available on Ottawa.ca/vut as of May 22 after the final tax bills are issued. The appeal process will be promoted through a PSA. Note that if the property owner did not complete a declaration and were deemed vacant, they will be required to submit a declaration when filing the Notice of Complaint. Once the Notice of Complaint has been reviewed and a decision made, property owners can file a Request for Review if they disagree with the results.

Additional data on the first year of the VUT will be provided to Council in a memo before the end of June, including the number of declared vacant units, the number of deemed vacant units due to no declaration being submitted by a property owner, the number of late declarations from property owners, and the costs incurred by the City to date.

Thank you for your continued support. Please contact me if you have any questions.

Sincerely,
Joseph Muhuni
Deputy City Treasurer, Revenue Services

Date: March 24, 2023

To: Mayor and Members of Council
From: Elizabeth Marland, Director, Human Resources Services

Members of Council,

I am writing to inform you that earlier today the Ontario Ministry of Finance posted the list of Ontario’s public sector employees who earned $100,000 or more in 2022 as required by the province’s Public Sector Salary Disclosure Act, 1996.

Since the provincial legislation passed in 1996, the City has disclosed the names, positions, salary paid and taxable benefits of employees who receive $100,000 or more in overall compensation.

In 2022, 5,831 employees were on the list which includes the City of Ottawa (including Elected Officials), Ottawa Public Library and Ottawa Police Service. Of the 5,831 employees on the list, forty-eight (48) per cent are first responders (Ottawa Police Service – 1,657, Ottawa Fire Services – 851, Ottawa Paramedic Service – 309).

The total number of City employees (excluding Ottawa Police Service and Ottawa Public Library employees) on the list is 4,150. Approximately thirty-seven (37) per cent of City employees on the list have a base salary less than $100,000, but are on the list because of earnings from one or more of the following reasons:

• retroactive payments (including economic increases)
• any premiums (including overtime, stand-by, shift differential and on-call)
• vacation cash-outs
• banked overtime cash-outs
• salary continuance (for employees who have left the City)

Public sector employers with significant funding levels from the Ontario provincial government are included on the Public Sector Salary Disclosure list. Along with the City of Ottawa, this includes other organizations such as the Government of Ontario, Crown Agencies, Municipalities, Hospitals, Boards of Public Health, School Boards, Universities, Colleges, Hydro One, and Ontario Power Generation.

Since the Act was enacted in 1996, there has been no adjustment to the disclosure threshold. If the $100,000 threshold was updated annually to account for inflation, it would now be $165,113.64. If the disclosure threshold was adjusted to this amount, only 460 municipal employees would be included on the list.

The legislation requires that information be presented in a prescribed manner. The City cannot:

• Provide a specific breakdown showing how salary was determined;
• Disclose what specific benefits were provided to staff; or
• Produce a report that differs from the approved format specified in the Act.

The list is available on the Ontario Ministry of Finance website at:
https://www.ontario.ca/public-sector-salary-disclosure/2022/all-sectors-and-seconded-employees/

A paper copy of the City of Ottawa list is also available at City Hall’s Service Centre.

If you have any further questions or require clarification, please do not hesitate to contact me.

Elizabeth Marland
Director, Human Resources Services

To: Mayor and Members of Council
From: Cyril Rogers, General Manager and Chief Financial Officer, Finance and Corporate Services Department

Members of Council,

The purpose of this memo is to notify members of City Council that an internal My ServiceOttawa web portal was accessible to the public from December 3, 2022, until January 4, 2023. While the level of risk is considered low, the City is taking precautionary measures in notifying individuals who may have been affected. The notifications were sent on March 13, 2023.

During this period of time, individuals may have had their personal information visible in the test environment on this portal for a 5-minute period after they created an account. After the 5-minute period, this information expired and was no longer visible. At no time was there an opportunity to view or share banking information or account passwords.

For context, this internal portal is a quality assurance (QA) testing environment that is used by the City to identify defects and improve My ServiceOttawa. It is separate from the public facing version of MySO, found at https://myservice.ottawa.ca. On December 3, 2022, a link to the internal portal was inadvertently included on ottawa.ca, making it accessible through search engines and leading some users to the testing environment.

The City was first notified of the issue through a complaint on January 3, 2023. Immediate action was taken, and the QA site was removed from public access on January 4, 2023. Since that time, the ServiceOttawa and ITS teams have completed detailed analysis to understand the extent and root cause of the issue to ensure it was fully resolved prior to reporting to Council.

As per legislative requirements, the City notified the Information and Privacy Commissioner of Ontario (IPC) of this inadvertent access to information. Members of the public have received IPC’s contact information if they wish to take further action.
The City of Ottawa takes its responsibility to secure and protect the personal information of individuals very seriously. As such, the following measures have been implemented to ensure that this does not occur again:

• the configuration setting of the QA site has been corrected;
• the QA site has been removed from public access;
• the URL (web address) for the QA site has been changed;
• the QA site has been added to the list of sites being automatically scanned by IT Security;
• a comprehensive review of procedures and guidelines related to the management of quality assurance or testing sites is being conducted;

This was an isolated incident and the services provided through MySO remain safe and secure. If you have and questions or concerns and would like to discuss this matter further, please do not hesitate to contact Robert Giggey, Program Manager, Digital Services.

Thank you,
Cyril Rogers
General Manager and Chief Financial Officer
Finance and Corporate Services Department

Date: March 9, 2023

To: Mayor and Members of Council
From: Sandro Carlucci, Chief Information Officer, Information Technology Services

Members of Council,

The purpose of this memo is to advise you that effective today March 9, 2023, Information Technology Services (ITS) will restrict access to the TikTok application for all corporate mobile devices and personal devices that access City managed applications due to cyber security concerns.

ITS will communicate these measures with detailed instructions to City employees via a corporate email, along with follow up communications in corporate newsletters.
This move follows similar decisions made by the Government of Canada and several provincial governments in response to the application’s collection of personal identifiable information and the potential for that information to be used for malicious purposes, including, but not limited to, sophisticated phishing, whale phishing, or social engineering campaigns.
For now, this measure applies only to the mobile application version of TikTok installed on City-issued mobile devices. Should TikTok be required for business purposes, users can continue to access the web version of TikTok through an internet browser as it does not present the same level of risk. ITS is aware that both Ottawa Public Health (OPH) and Recreation, Cultural & Facility Services (RCFS) use TikTok for business purposes and has informed them of this decision.

For more information on cyber security best practices and information, please visit the BeSecure SharePoint Site. Should you have any questions about this decision, please feel free to contact me directly.

Sincerely,

Sandro Carlucci
Chief Information Officer

Date: March 6, 2023

To: Mayor and Members of Council
From: Joseph Muhuni, Deputy City Treasurer, Revenue

Members of Council,

The purpose of this memo is to provide an update on the Payment in Lieu of Taxes (PILTs) dispute related to two properties owned by the National Capital Commission (NCC).

On February 28, 2023, Revenue Services filed an application to the Federal Court regarding the absence of payment in PILTs resulting in approximately $2M budgeted PILT revenue shortfall. The dispute is regarding the PILT eligibility of two properties, the Lebreton Flats redevelopment and 220 Corkstown Road. The City and the NCC remain fully engaged in working toward a resolution outside of court.

As explained in a previous memorandum dated January 19, 2023, properties owned by the NCC in Ottawa are exempt from property taxes. Instead, they compensate municipalities for services the local government provides through PILTs, as prescribed by the Federal PILT Act, National Capital Act and associated Regulations. The focus of the discussion with the NCC is on the interpretation of an exemption of properties under section 16(2) of the National Capital Act, RSC 1995. The City had submitted applications to the Federal Dispute Advisory Panel (DAP) who recently advised the City that this component of the dispute is within the jurisdiction of the Federal Court.

To preserve the City’s rights to appeal the exemption dispute related to the subject properties, the City has engaged internal legal counsel and Aird & Berlis LLP law firm to file an application at the Federal Court to seek the full payment of PILTs.

The City’s Revenue Services will continue to work with legal services, external legal counsel, and the NCC to best advance the City’s position in this matter and will provide further updates.

For more information and questions, please do not hesitate to contact me directly.

Joseph Muhuni Deputy City Treasurer Revenue

Date: January 31, 2023

To: Mayor and Members of Council
From: Joseph Muhuni, Deputy City Treasurer, Revenue

Members of Council,

I am pleased to provide a further update to City Council on the residential Vacant Unit Tax (VUT).

As of today, 27 days after opening the declaration portal, we have received approximately 246,000 completed declarations, representing 76 percent of residential properties required to submit a declaration.

Residential property owners who have not yet completed the declaration will receive reminders with their interim property tax bills, which will be mailed out during the second half of February. Additionally, those who have not declared by the March 16, 2023 deadline will also be sent reminder notices after that date. As you are aware, late fees are being waived this year.

Given the exceptional uptake thus far, and the absence of any significant technical issues since the online portal first went live on January 4, 2023, this is the last planned update to Council on the VUT until after the declaration period closes on April 30, 2023. Should any unexpected issues arise, Council will be made aware as required.

Thank you for your continued support. Please contact me if you have any questions.

Sincerely,
Joseph Muhuni
Deputy City Treasurer, Revenue Services

Date: January 23, 2023

To: Mayor and Members of Council
From: Sharon McLaughlin, Director, Payroll, Pensions, and Benefits

Members of Council,

In completing regular payroll monitoring activities for the pay cycle of January 12, 2023, Payroll, Pensions and Benefits (PP&B) became aware of a technical issue affecting the pay of some City of Ottawa employees and members of the Ottawa Police Service. The issue was limited to employee deductions.

Upon discovery of the technical issue, immediate steps were taken to correct pay adjustments over $50 before pay was released to employees. Manual intervention was required to adjust the pay of approximately 2,500 employees. These actions prevented overpayment and underpayment situations from occurring and ensured that these employees received complete and accurate pay on January 12, 2023. PP&B communicated directly with the employees to advise them of the adjustments to their pay and how the pay would be reflected on their pay statement(s) and/or deposit(s).

All outstanding pay adjustments, approximately 7,700, are of $50 or less and will be reflected in the second pay period of the year in the normal pay cycle, ending on January 26, 2023.
Following the issuance of the January 26, 2023 pay, PP&B expects that pay corrections will be complete. PP&B has carried out ongoing and heightened system monitoring and testing activities following the correction of the technical issue.

For more information and questions, please do not hesitate to contact me directly.

Sincerely,

Sharon McLaughlin Director Payroll, Pensions, and Benefits

Date: January 19, 2023

To: Mayor and Members of Council
From: Valerie Turner, General Manager, Innovative Client Services Department

Members of Council,

The purpose of this memo is to provide members of Council with an update on the City’s Public Wi-Fi program and respond to a direction from the previous Information Technology Subcommittee (ITSC) to provide an overview of the City of Toronto’s direction on connectivity.

Updates on the City’s Public Wi-Fi Program

The City of Ottawa currently offers Wi-Fi services at no cost to users in dozens of City facilities located across Ottawa through the City’s Public Wi-Fi Program. Led by the Innovative Client Services (ICS) Department, this program has in recent years been seeking external funding opportunities to cover the capital installation costs of this service.

Background

With the onset of the global pandemic in 2020 and the resulting shift towards greater rates of remote work and education, the disparities in rates and coverage of connectivity across the city were further highlighted. As a result of this shift, the City began focusing its connectivity efforts on “priority locations” supporting marginalized populations, including equity-deserving groups and those with specific socioeconomic needs, and underserved neighbourhoods including those in rural areas of the city.

As documented in the May 2022 Update on Connectivity Directions (ACS2022-ICS-ST-0002), staff were successful in obtaining federal grant funding from two sources in 2021 – the Investing in Canada Infrastructure Program (ICIP) and the Canada Healthy Communities Initiative (CHCI) – to expand the City’s public Wi-Fi offering to an additional 24 City facilities in priority locations.

Current status

Due to continued global supply chain disruptions caused by the COVID-19 pandemic, the technology products required for the City’s public Wi-Fi expansion have faced significant delays, affecting the installation of this service. Despite these challenges, staff have been able to add 13 sites over the course of 2022, bringing the total number of City facilities currently offering free public Wi-Fi to 42. The Information Technology Services (ITS) group anticipates being able to complete installation of the Wi-Fi service in the remaining 11 “priority locations” by the end of 2023, provided that there are no delays impacting scheduled hardware delivery. An updated list of the City’s public Wi-Fi offering is provided as an annex to this memo.

At the close of 2022, the City was also able to extend the use of its public Wi-Fi network to local and visiting students, researchers and faculty through a partnership with eduroam, a secure, Wi-Fi service for the international research and education community that is available in more than 100 countries. Uptake of this service in Ottawa, has been immediate and impressive, with thousands of unique sessions within the first few weeks of it being operational. The eduroam service will automatically be extended to any additional sites the City adds once they become active.

Next steps

As noted in the June 2022 Rural Internet Connectivity Update to the Agricultural and Rural Affairs Committee (ACS2022-PIE-EDP-0027), a previous Council decision was made to allocate $40,000 in rural connectivity funding to continue to expand the City’s public Wi-Fi offering to City facilities located in the rural areas of Ottawa. Given this announcement, staff in the ICS Department have begun to assess new locations from a technological feasibility perspective. A list of locations where this service could be offered in rural Ottawa will be brought forward for prioritization with partners across the organization, including the Rural Affairs Office in the Planning, Real Estate and Economic Development (PRED) Department and the Recreation, Culture and Facility Services (RCFS) Department in early 2023.

ICS will continue to lead the Public Wi-Fi Program with a focus on priority locations serving marginalized populations and underserved neighbourhoods. In addition, staff will continue to monitor and apply for external funding opportunities for capital installation costs. Operational costs for the provision of this service will continue to be brought to Council for consideration during subsequent budget cycles.

City of Toronto’s direction on connectivity

At the May 31, 2022, meeting of the ITSC, staff were asked to report back on the City of Toronto’s direction on connectivity, particularly with respect to an apparent decision to move away from the development of a Municipal Broadband Network.

Background

The ConnectTO program was initially approved by Toronto City Council on February 2, 2021, there had been a series of proposals for how the City could improve access to the internet, including – as Ottawa has done – expanding access to free public Wi-Fi and advocating the federal and provincial governments to invest in this area. The program, however, also included recommendations that were interpreted by some as the City of Toronto positioning itself to become an internet service provider (ISP).

These recommendations read as follows:  

• City Council endorse the proposed creation of a City-owned high-speed Municipal Broadband Network (MBN) that will, in the long term, a) support municipal services; b) connect City-owned facilities and assets; c) be accessible for Internet Service Providers (ISPs); and d) help ensure equitable access to broadband internet for residents regardless of their financial means or circumstances; and
• City Council direct the Chief Technology Officer, supported by the Chief Engineering & Executive Director, Engineering & Construction Services, the General Manager, Transportation Services, the General Manager, Toronto Water, the Executive Director, Corporate Real Estate Management, and appropriate staff in other Divisions as required, to centralize and administer the deployment and management of City-owned fibre broadband infrastructure.

Current status

While these recommendations did not state that the City intended to compete with private industry to provide internet services to residents and businesses, Toronto City staff acknowledged that the suggested creation of a “Municipal Broadband Network” may have led to some confusion with respect to the role of the City in end-user internet connectivity. As such, these recommendations were removed from the ConnectTO Program Update that was adopted by Toronto City Council on May 11, 2022.

Through this action, the City of Toronto clarified that it will not create a municipally owned broadband network that would compete with private industry. The City of Ottawa articulated a similar position in the May 2022 Update on Connectivity Directions (ACS2022-ICS-ST-0002), suggesting instead that Ottawa’s focus should be on areas within its control, such as advocating to other levels of government to expand broadband connectivity within the municipality.

List of public Wi-Fi locations in Ottawa

Date: January 19, 2023

To: Mayor and Members of Council
From: Joseph Muhuni, Deputy City Treasurer, Revenue

Members of Council,

The purpose of this memo is to provide an update on the Payment in Lieu of Taxes (PILTs) dispute involving properties in Ottawa owned by the Federal Government, the NCC and Canada Post (Federal Properties).

Today, Revenue Services filed an application to the Federal Court regarding the reduction in PILTs received from Federal Properties which has resulted in an unanticipated budgeted revenue shortfall of $11.5M in 2021 and $11.5M in 2022. The application to the Federal Court is a continuation of the legal course of action available to the City, which commenced with the various Federal Properties in 2021 and 2022. The City of Ottawa had submitted applications for each year to the Federal Dispute Advisory Panel (DAP) who recently advised the City that this dispute is within the jurisdiction of the Federal Court. Communications and negotiations are ongoing at the staff and political level, between all three levels of government.

Federal Properties in Ottawa are exempt from property taxes and instead compensate municipalities for services in the form of PILTs that are consistent with applicable municipal and provincial tax rates as prescribed by the Federal PILT Act and associated Regulations. As per the Education Act, the City retains business education taxes collected from PILTs, which forms part of the annual budgeted revenues.

The reduction in PILTs received from Federal Properties, began in the 2021 taxation year, which coincided with an announcement from the Ontario Provincial government under Ontario Regulation 46/21, lowering the 2021 rate for Business Education Taxes (BET) for taxable business properties in Ontario. The lower rate provided financial relief for businesses struggling and recovering from the impacts of the COVID-19 pandemic and has continued in the 2022 tax year. We expect this to continue in 2023.

Since the announcement from the Province, Federal Properties have been compensating the City for their services at the reduced BET rate, rather than the legislatively prescribed PILTs rate. This has resulted in significant budgeted revenue shortfalls that will continue should Federal Properties continue to pay the reduced BET rate.

As such, the City has proceeded with an application to the Federal Court with the support of internal legal counsel and Aird & Berlis LLP law firm. The City’s application to the Federal Court requests the review of the decision by the Federal Government, certain Crown Corporations and the DAP, and seeks the full payment of the owed PILT amounts.

The City’s Revenue Services will continue to work with legal services, external legal counsel, and all three levels of government to best advance the City’s position in this matter and will provide further updates.

For more information and questions, please do not hesitate to contact me directly.

Joseph Muhuni, Deputy City Treasurer, Revenue

Date: January 13, 2023

To: Mayor and Members of Council
From: Joseph Muhuni, Deputy City Treasurer, Revenue

Members of Council,

Further to my recent Memorandums, I am pleased to provide an update on the residential Vacant Unit Tax (VUT).

As of 9 am today, nine days after the portal launch, we have received approximately 140,000 completed declarations, representing 42 percent of residential properties required to submit a declaration.
The following communications tools are being used to promote the declaration period and the requirement to complete a declaration for all residential properties:

• Detailed program information on Ottawa.ca/VUT. Basic information on submitting declarations is available in Spanish, Arabic, Simplified Chinese and Somali
• A public service announcement that was released on January 9th
• Social media campaign
• Online ads
• OC Transpo exterior and interior bus ads
• Digital screens at City of Ottawa facilities
• Radio ads in various languages on CHIN Radio
• Posters and handouts available at City recreation facilities, libraries and Client Service Centres
• A buckslip outlining information on accessible options available in ParaTranspo vehicles and suitable locations
• A demonstration on completing the declaration at the Seniors’ Round Table
• The second notice and two handouts are being issued to affected residential property owners over the next week. These letters were generated prior to the end of 2022, so those who have already declared will be included in the mailout. Property owners who have already completed the declaration can disregard the second notice.
• A message included in water bills
• English and French videos on how to complete a declaration as paid YouTube content

Staff are monitoring the latest trend of questions being received by the public. In response, the City just released a “You Asked” feature story to address some of the common questions received thus far. For example, 30% of the calls received pertain to a “Property not found!” error message when property owners are searching for their property. For Council’s awareness, the response is, When searching for your property, it is important to input the Access Code carefully. The Access Code contains both letters and numbers which can be easily confused. For example, the letter O and the number 0 or the Letter I and the number 1. If residents have difficulty completing the property search step, they can contact Revenue Services at 613-580-2444 or by e-mail at
vut_ilv@ottawa.ca. If we see a trend in other inquiries and questions, future articles will be published to address those concerns – taking some pressure off the call lines and those monitoring the City’s social media platforms.

Thank you for your continued support. I will provide further updates as required.

Sincerely,
Joseph Muhuni
Deputy City Treasurer, Revenue Services

Date: January 5, 2023

To: Mayor and Members of Council
From: Joseph Muhuni, Deputy City Treasurer, Revenue

Members of Council,

Further to my Memorandum to Council dated January 4, 2023, I am pleased to provide an update on the residential Vacant Unit Tax (VUT).

As you are aware, the declaration period opened on January 4, 2023 for property owners to declare the 2022 occupancy status of their residential properties, and the on-line portal to support the declaration went live at the same time. As of noon today, we have received more than 44,000 completed declarations.

The technical issues that were identified on January 4th have largely been resolved now. Although there has been an unprecedented surge in volume to the call centre, we are adjusting our staffing levels accordingly and providing updated automated messaging for callers who are waiting.

A second notice will be sent to residential property owners next week – which will include their roll number, access code and more information on how to declare. In order to meet the January 9, 2023 mailout date, these letters were generated prior to the end of the year, so those who have already declared will be included in the mailout. Property owners who have already completed the declaration can disregard the second notice. Residents registered with MyServiceOttawa can go directly to the declaration from their property tax account.

A Public Service Announcement (PSA) is scheduled for January 9th and a Feature Story will be published later next week to respond to some common questions that have emerged.

I will provide Members of Council with a further update next week, sooner if required. Further information on the VUT is available at www.ottawa.ca/vut.

Sincerely,
Joseph Muhuni
Deputy City Treasurer, Revenue Services