WHEREAS the federal government is the largest landowner in Ottawa, holding dozens of properties throughout the city, particularly in the downtown core; and
WHEREAS the federal government does not pay property taxes but instead pays Payments in Lieu of Taxes (PILTs) that are meant to represent a similar amount; and
WHEREAS the federal government unilaterally determines the value and classification of its properties, and has reduced its payments to the city from $194 million in 2016 to $164 million today; and
WHEREAS this shortfall has placed a significant financial burden on Ottawa's local taxpayers, who are forced to make up the difference to fund essential city services; and
WHEREAS Ottawa's public transit system is facing an annual operating shortfall of $140 million due to a decline in ridership and fare revenue, resulting in part from the federal government's shift to more remote work; and
WHEREAS the City of Ottawa has continued to invest in public transit, increasing OC Transpo’s budget by 27% in the past five years despite a 30% decline in passenger traffic; and
WHEREAS the Ontario government pays either the entire capital cost or almost the entire capital cost of major transit projects in Toronto, Hamilton, Mississauga, and Brampton, while paying roughly 22% of the capital cost of Ottawa projects, despite having agreed to pay 33%, leaving the city of Ottawa paying more than 50%; and
WHEREAS municipalities across Canada, including through the Association of Municipalities of Ontario (AMO) and the Federation of Canadian Municipalities (FCM), have been advocating for a new fiscal framework that better reflects the financial realities of cities today; and
WHEREAS the City of Ottawa faces unique challenges as the nation’s capital, which necessitate specific considerations and equitable treatment from the federal and provincial governments to ensure the sustainability of its finances and public services; and
WHEREAS the Mayor has been actively advocating for fairness in PILTs and for sustainable transit funding, urging other levels of government to recognize and address the unique challenges Ottawa faces; and
WHEREAS effective advocacy requires sufficient resources, including enhanced intergovernmental relations capabilities, to ensure the City of Ottawa can fully engage with provincial and federal counterparts on these critical issues;
THEREFORE BE IT RESOLVED THAT Ottawa City Council endorses the objectives of the Fairness for Ottawa campaign and will work together to advocate for Ottawa’s fair share of funding from other levels of government; and
BE IT FURTHER RESOLVED THAT the Mayor work with the LRFP Transit Working Group, the Chair and Vice Chair of Transit Commission, Councillor Tierney as the Council Member on FCM Board, and Councillor Brockington as the Council Member on AMO Board, to advise and promote the objectives of the campaign, and help staff identify opportunities to communicate the objectives of the campaign to the public and to federal and provincial partners; and
BE IT FURTHER RESOLVED THAT the Mayor and the City Manager be directed to continue to engage with their provincial and federal counterparts for Ottawa’s fair share.