Ottawa Construction News staff writer
Ottawa city council has approved a long-term financial strategy aimed at addressing a $1.23-billion infrastructure funding gap while also endorsing new transit investments, affordable housing measures and participation in a federal clean fuel credit program.
The Long-Range Financial Plan for tax-supported capital provides a 10-year framework for funding the renewal and expansion of municipal infrastructure. To begin closing the funding gap, the city will increase annual contributions to capital by $12 million, including $4.5 million to service $120 million in new debt planned for 2027 and 2028, councillors decided at the June 10 meeting.
Council also approved directing 0.15 per cent of annual property tax growth revenues, estimated at $3.5 million a year, to capital growth projects and authorized a one-time $32-million draw from the capital reserve.
Beginning in 2029, the city plans to increase annual borrowing by $36.5 million, bringing average annual debt issuance to $96.5 million through 2035. Additional funding will come from annual base budget increases, savings from facility rationalization and proceeds from surplus property sales.
A reserve fund will be created to support climate-related infrastructure projects using a portion of Hydro Ottawa dividend revenues and savings generated through climate initiatives.
In a separate decision, council approved Ottawa’s participation in the federal Clean Fuel Regulations Program which allows municipalities to generate and sell credits for supplying clean transportation energy that replaces fossil fuels.
Ottawa plans to register its zero-emission bus program in July and use revenue from the sale of credits to help purchase additional electric buses. City staff estimate the program could generate about $1.3 million in revenue in 2026, rising to $3.9 million in 2027 and about $4.3 million annually once Ottawa’s electric bus fleet reaches 350 vehicles.
A package of transit reliability measures was approved, including installing heat tracing on the Confederation Line overhead catenary system and expanded transit priority measures.
Changes to the city’s Housing Accelerator Fund spending plan are expected to improve flexibility in how $44 million in anticipated federal funding expected in 2027 will be used with about 90 per cent supporting affordable housing construction, acquisitions and enabling infrastructure while allowing greater flexibility to pursue new partnerships.
