Mayor Watsons Budget Address 2016

November 12, 2015

Good morning.
I would like to provide an overview of the proposed 2016 budget.
Today, Im pleased to tell you that we are tabling a balanced budget.
The draft 2016 budget follows Councils direction to keep the tax rate at 2 per cent.
This is good news for local families, residents and businesses all of whom expect us
to live within our means.
The proposed budget would see us remain steady on our priorities of transit, affordable
housing, and strengthening our local economy.
We will also protect our front-line services.
In short, Budget 2016 proposes that we continue to be an activist Council by investing in
what matters most to our residents.
I want to thank our City Manager, Treasurer, Deputy Treasurer, Deputy City Managers,
and their staff for their hard work on this budget.
I also want to thank all of my colleagues around this table.
I met with each of you, alongside senior management, to discuss your ideas and
priorities.
You also passed along ideas provided by our residents from across the city.
Let me give you an overview of our 2016 budget priorities.
Budget 2016 will make key investments to create stronger communities.
That starts with helping even more people afford to have a roof over their heads.
We have made tremendous progress over the last few years.
By making unprecedented investments in our Citys most vulnerable, we now have far
fewer people living on the street than five years ago.
And while we can take pride in this achievement, there is more work to be done.
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For 2016, the draft budget proposes continuing the $2-million increase for affordable
housing and homelessness programs that weve funded through the provincial upload.
One of the major projects being funded in part by these dollars is the Carlington
Community Health Centre.
This partnership between the City, Ottawa Community Housing, the province, the
government of Canada, and the Carlington Community Health centre will break ground
in 2016 and once built, will bring 42 new affordable housing units to our city.
I am very proud of our increased funding for affordable housing.
In fact, when you add it all up, planned and past investments made by this Council and
the last Council will amount to more than $100 million in NEW dollars in this area.
Whether its through rent subsidies, new units or renovations of older housing stock
we have made a true difference in peoples lives.
These investments alongside our predictable 2% tax rate will ensure Ottawa
continues to be an affordable place to raise a family.
Well strengthen communities outside the home as well.
Budget 2016 proposes continuing the $50,000 increase weve given for low-income
families who want to access recreation programs.
Well also support our community volunteers who run more than 230 local outdoor ice
rinks by increasing the grants we provide them by 10%.
This winter will see the first increase to this program in more than 10 years.
These are modest, but important measures, in improving the quality of life in our
communities.
The draft budget also proposes continuing our investments in our gang exit strategy.
This is not a problem that will go away overnight.
But we are working with our partners at Crime Prevention Ottawa, Ottawa Police
Service, the John Howard Society, and the Ottawa Community Immigrant Services
Organization to move this strategy forward.
In 2016, the Ottawa Police Service Board proposes that this good work will be
supported by 25 new police officers.

The budget were tabling today also proposes a 1.5% increase in the amounts we give
to community health resource centres.
These organizations conduct important outreach and provide crucial services at the
local level, especially for vulnerable individuals.
Weve been steadily increasing contributions in this area since 2010, with overall
funding to these centres, rising to more than $10.9 million a 25% increase in six years.
As a whole, this budget proposes making targeted, smart investments to lift people out
of poverty and create healthier, safer communities.
Ottawa is seen as a leader in this area and we will continue to lead.
Budget 2016 will allow us to continue the progress were making in providing great
community infrastructure.
That means our front-line service priorities such as parks, recreation and culture.
When you look at the proposed budget amounts in this area you will be pleased to see
our investments continuing to increase in 2016.
The draft budget proposes investing $2 million in recreation facility upgrades and an
additional $1,030,000 in community partnership grants next year.
Budget 2016 proposes 10 new splash pads in community park locations across the city
during the next three years.
Well also invest $280,000 for design work for a future expansion of Blackburn Arena.
And, the City will provide more than $1.2 million to partner with other funders in
Canada150 projects.
This includes expanding of the Bayshore Fieldhouse and the Manotick Arena and an
addition to the Albion Heatherington Community Centre.
We will also build on the community success weve seen at the Francois Dupuis pool
site, as we invest $5.5 million to add a full-service community centre to the facility.
Our parks will also see upgrades or expansions.
This includes Inverness, Pinecrest, Sawmill Creek, Optimiste, Chaudiere and Stonegate
Park.
The draft budget also proposes contributing more than $320,000 to complete the
playground at the new Miracle League of Ottawa baseball field.
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Some of the investments we propose are smaller-scale or behind the scenes.

Sometimes this means new a new pool deck, gym floor or hand railings.
Or maybe it is a new elevator or ventilation system.
These investments are very important for the long-term health of our facilities and our
communities.
For example, well invest $1.8 million in much-needed rehabilitation for the Ray Friel
and Bob MacQuarrie complexes in Orleans.
Other facilities that will see similar rehabilitation include Walter Baker, Beaverbrook,
Dunrobin, Goulbourn, Manor Park, Terry Fox, and the Nepean Sportsplex.
Arenas such as the Howard Darwin Centennial Arena and the West Carleton
Community Complex will also see work.
On a city-wide basis, we will invest a total of $326 million to improve existing and build
new infrastructure.
This will show our continued commitment to preserving our roads, sidewalks, bridges,
cycling paths, and watermains.
City-wide, well invest $35 million in road resurfacing on key roads like Iris Street and
Jean dArc Boulevard North.
This figure includes also includes a significant investment in the resurfacing and
reconstruction of our rural roads including Carp Road, Quigley Hill Road, Old
Stagecoach Road, and Earl Armstrong Road.
In the downtown core, well get ready for the 2017 celebrations by repaving Wellington
Street, Kent Street and Mackenzie Avenue.
Beyond this, we will have integrated road work projects, which tie together our road,
sewer and watermain renewal work.
In this area, the draft budget proposes investing $65 million in 2016.
This includes Gilmour, Renfrew, Cartier, Waverley, Prince of Wales, Crystal Beach and
Montreal Road.
Well improve structures such as the Garvin Road Bridge large culverts on
Ramsayville Road and Diamondview Road and the 9 th Line Road Bridge.
These are the kinds of core investments that we need to protect and promote.
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Our City has spent a historic amount on roads, transit, and infrastructure over the last 5
years.
And now, we have a partner at the federal level that says it will triple spending on
infrastructure.
That is very encouraging the City of Ottawa will be at the table as a partner to help
reach this goal and spur our Citys economic renewal.
One thing that myself and my fellow Council members have heard repeatedly from
residents are complaints about speeding in residential areas.
This is a significant problem and one we are taking steps to address.
In Budget 2016, each Ward will again receive $40,000 - a total of $920,000 across the
city to institute traffic calming measures that are highly responsive to each wards
specific challenges.
There will also be new traffic control devices at intersections like Conroy at Queensdale
and Blair at Claver.
And we will continue to implement our Complete Streets approach to selected road
reconstruction projects in order to better serve all modes of transportation that our
residents use.
It is clear that Ottawa is becoming a more dynamic city in a number of ways.
Next year will see our single biggest arts capital investment take shape: the revitalized
Arts Court and expanded Ottawa Art Gallery.
This regional arts hub is long overdue.
Well also continue to grow our commitment to cultural funding by an additional 1.5%
percent this year.
Since 2010, weve increased annual cultural grant funding to cultural groups by more
than $1 million.
In 2016, we will also continue our investments to ensure ensuring cycling remains a
safe and attractive option for commuters and families.
For example, this budget proposes to allocate $200,000 to maintain our 40-kilometre
winter cycling network.

I am pleased to tell you that we will also move forward on two key bike lane projects this
year.
The first is a partnership with the NCC and the Embassy of the United States of America
for bike lanes on Mackenzie Avenue.
This will provide better cycling connectivity and remove the unattractive jersey barriers
in front of the embassy.
I want to thank United States Ambassador Bruce Heyman who brought this offer to me
several months ago.
In 2016, we will also break ground on the first phase of the OConnor Street bike lane,
which will be a great north-south option for cyclists.
This will be a perfect complement to the Laurier Bike Lanes, which will likely celebrate
their 2-millionth rider by this time next year.
In addition to this, well invest $1.1 million for cycling improvements on Cyrville Road.
Looking ahead, we will also open the $9.2-million Somerset-Donald pedestrian and
cycling bridge.
This will be the fifth bridge weve opened in the last three years.
The $25-million investment in cycling during the last term of Council was the largest this
citys ever seen.
At the end of this term we are on track to do even better by investing more than $31
million over four years.
And on the strength of the recommendation made by our transportation committee, we
will make an important down payment of $4.8M million on the Fifth and Clegg
Pedestrian Crossing linking the Glebe to Old Ottawa East.
I am delighted to hear that there is strong support for this project at the municipal,
provincial, and federal levels.
Colleagues, we need to look at this budget against the backdrop of the reality of our
local economy and the average familys budget.
We must be aware that the rate of development and growth has been slowing down.
There is a clear slowdown in our economy with increases in our assessment base
projected to be 1.3%, or $18.4 million in new additional taxation revenue in 2016.

By way of comparison, in 2015, assessment growth generated $24.6 million in addition

taxation revenue, more than a $6 million decline.
We need to be aware of the challenges this places on our own future plans to fund
infrastructure and other priorities.
This will be a challenge.
However, the answer would not be to saddle the business sector, first-time homebuyers,
or seniors on a fixed income with an even-higher increase in taxes.
This is true across the city but even more so for wards in the downtown core, which are
being hit hard by property re-assessments ranging as high as 8% between assessment
periods.
This means some homes will already face a higher tax bill next year, even before we
adjust our own tax rate.
Our job here is clear.
Budget time is not just about deciding where we spend more money.
It is equally important to look internally to find savings.
In a $3-billion organization, we should have every confidence that we can find
innovation solutions.
That is why in October, City Council directed staff to pursue multi-year efficiency
measures to address structural financial challenges, such as:

Winter maintenance costs;

Arbitrated wage settlements;
And increased insurance costs

And I was grateful for the useful suggestions for savings brought forward by Members of
Council when I met with each of you about your ideas.
Let me give you some examples.
During our meetings, some Councillors brought hard copies of glossy printed materials
that promoted City programs, delivered in large quantities across the city.
Sometimes these products are printed out of habit and it is reasonable to rethink how
much we spend on advertising and printing.
Some noticed the number of shiny new City-owned trucks in some of our municipal lots.
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It is reasonable to press the pause button on new car and truck purchases while we
review how we deliver a more efficient and cost effective winter maintenance program.
I think its a similar decision any family would make when they were considering options
for their household budget.
Several of you questioned the number of employees in a certain unit or branch.
Our City management has taken these suggestions and will include them as part of
ongoing operational reviews we approved last month.
The budget being tabled today proposes a reduction of 50 full-time equivalent employee
positions.
This is the 5th budget in a row that would see the municipal workforce reduced in a
responsible fashion during the same years weve been named one of Canadas top
100 employers.
Well continue to manage the size of our workforce in a responsible manner, even as we
continue to grow.
And looking internally we have proposed measures in Budget 2016 that will save us
money next year and put us on a more stable footing as we go forward in the years to
come.
Some examples include:

Reviewing planned purchases of trucks and other fleet vehicles

Saving $300,000 by contracting out the Citys iron works
Reducing the use of consultants for internal surveys and online forms
Reducing paid advertising, media monitoring services, printing, and postage
Converting streetlights to more-efficient LED technology
Reducing overtime and on-call staff time
Reviewing municipally-owned land and properties to sell

These are the types of efficiencies that we have to be diligent about finding.
We owe it to the residents of Ottawa to make sure their tax dollars are spent wisely.
That starts by looking carefully at our own internal spending.
Of course, 2016 will also be a big year for light rail transit.

Construction for the O-Train Confederation Line will continue, which requires dollars not
just for construction but also for OC Transpo to shift to a multi-modal transportation
company.
We will also get ready for Stage 2 of LRT.
This Council can be very proud of the progress we have done so far.
All three levels of government are now in lockstep on this project.
We can also be optimistic when we see both the provincial and federal governments
looking to spend more on infrastructure to stimulate the economy.
As we move forward with preliminary engineering work for Stage 2 LRT this year, we will
work hard to ensure our partners maximize their contributions to this transformative citybuilding project.
We have a strong case not only for Stage 2, but funding for the Trim Road and Airport
spur lines as well.
And as part of our TMP refresh, we will look at the feasibility of extending LRT to
Kanata.
I look forward to working with all of you around this table to make that happen.
Because we all share the goal of creating a world-class transit system for the nations
capital.
Residents are starting to see us make good on that promise as they watch the LRT
being built right before their very eyes.
As we undertake this very important work, we are always aware of the growing pains on
our transit customers.
At the same time, we must remember that this did not happen overnight.
This has been a well-coordinated effort that is going according to plan.
The City and its partners have invested significant sums to make this an easier
transition for all of our road users, and our transit customers.
This includes:
An expanded O-Train Trillium Line, increasing the frequency of trips.
A $206 million provincial investment in the Highway 417 expansion, with extra
lanes being used exclusively by our buses for two years.
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And $33 million for new buses to increase capacity during construction.
This draft budget proposes $11.5 million in bus and other OC Transpo vehicle renewal.
Well also invest millions more in station and Transitway improvements to create a more
comfortable transit experience.
We must also remember that the Citys share of funding for transit capital does not
come from the fare box that funding already comes from municipal taxpayers who foot
100% of the share.
This is in addition to the nearly $88 million in annual gas tax revenue that vehicle
owners pay, dedicated exclusively to transit.
The draft budget proposes that the City will generate an increase in fare box revenue of
2.5% in 2016.
This is a balanced approach.
While it would always be nice to see fares frozen, this would severely undermine and
underfund our LRT affordability plan that we all support.
I suppose if we could freeze wage settlements or fleet maintenance costs, then we
could freeze fares.
But that is not realistic.
One only has to look back two Councils ago to see fare increases of 7.5%, 3 years in a
row.
We must continue our balanced approach into the future to ensure we have the funds to
pay for better transit, to the benefit of all of our residents.
We have spent some time in the last few months talking about some of the financial
challenges we face today and on the horizon.
As elected officials, our residents expect us to look at these challenges reasonably and
in a balanced way.
They expect us to show leadership and live within our means.
But that does not mean we will cut back on or abandon our priorities.
Colleagues, if anyone was worried about the City changing direction on its core
priorities, there is no evidence of that in this budget.
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In closing, let me give you a 2016 summary:

Well continue building light rail transit and transform our transportation system.
That includes construction for the Confederation Line and moving forward confidently
with Stage 2 to Orleans, Bayshore, Algonquin College and Riverside South.
Well see the revitalized Arts Court take shape.
The budget includes funds for the planning and building of two new fire stations at
Cyrville and Orleans South.
Well open the Bayview Innovation Centre for small businesses and entrepreneurs.
Well move towards procurement for a new central library with a $2.9 million contribution
from the City alongside a $1 million contribution from the Library.
Well start converting our street lights to more-efficient LED technology.
Well break ground on the final part of the Ottawa River Action Plan.
Well install new red light cameras to keep our streets safe.
Well fix roads, sidewalks, and recreation and community centres.
Well continue record investments in transit, arts and culture, affordable housing, and
economic development.
And well action our solid game plan to attract investment and tourists ahead of 2017.
Last week, I was in Stittsville and a resident came up to me and said I like the fact the
City is finally getting things done.
It was a brief conversation, but one that I believe sums up our can-do attitude.
When you look at whats ahead for 2016 and beyond
We are creating a more compassionate, sustainable, dynamic city.
Colleagues, it is a very exciting time to be in Ottawa.
And working together, we will make it even better.

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