Finance and Corporate Services Committee

Minutes

Meeting #:

27

Date:

Tuesday, September 02, 2025

Time:

9:30 A.m. - 3:00 P.m.

Location:

Andrew S. Haydon Hall, 110 Laurier Avenue West, and by electronic participation

Present:

• Chair: Mayor Mark Sutcliffe, 
• Vice-Chair: Councillor Catherine Kitts, 
• Councillor Matt Luloff, 
• Councillor Laura Dudas, 
• Councillor Cathy Curry, 
• Councillor Glen Gower, 
• Councillor Tim Tierney, 
• Councillor Rawlson King, 
• Councillor Jeff Leiper, 
• Councillor Riley Brockington, 
• Councillor Shawn Menard, 
• and Councillor David Brown 

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1.

Notices and meeting information for meeting participants and the public

Notices and meeting information are attached to the agenda and minutes, including: availability of simultaneous interpretation and accessibility accommodations; in camera meeting procedures; information items not subject to discussion; personal information disclaimer for correspondents and public speakers; notices regarding minutes; and remote participation details.

Accessible formats and communication supports are available, upon request.

Except where otherwise indicated, reports requiring Council consideration will be presented to Council on 10 September 2025 in Finance and Corporate Services Committee Report 27.

The deadline to register by phone to speak, or submit written comments or visual presentations is 4 pm on Friday, 29 August, and the deadline to register to speak by email is 8:30 am on Tuesday, 2 September 2025.

2.

Declarations of Interest

No Declarations of Interest were filed.

3.

Confirmation of Minutes

3.1

FCSC Minutes 26 – 30 June 2025

• Carried

4.

Responses to Inquiries

4.1

OCC-2025-09 - Water Usage Notification

4.2

OCC-2025-12 - Taxation of Additional Units

5.

Finance and Corporate Services Department

5.1

2025 Tax, Transit and Rate Supported Programs Operating and Capital Budget Q2 Status

 File No: ACS2025-FCS-FSP-0010 - Citywide

Items 5.1 (2025 Tax, Transit and Rate Supported Programs Operating and Capital Budget Q2) and 5.2 (Proposed 2026 Budget Directions, Timeline and Consultation Process) were considered simultaneously. 

Mr. Cyril Rogers, General Manager, Finance and Corporate Services Department (FCSD) and Ms. Svetlana Valkova (Deputy CFO, FCSD, provided a presentation.  A copy of the slide presentation is filed with the Office of the City Clerk.

The following members of the public spoke before the Committee and provided comments:
•    Marko Miljusevic
•    James McAvoy
•    Alex Cullen*
•    Patrick Bickerton*
•    Etienne Lefebvre*
•    Carolyn Mackenzie
•    William van Geest, Ecology Ottawa
[    * Individuals / groups marked with an asterisk above either provided comments in writing or by e-mail; all submissions and presentations are held on file with the Office of the City Clerk. ]

The following also responded to questions: 

• Mr. Cyril Rogers, General Manager, Finance and Corporate Services Depart-ment (FCSD);
• Ms. Wendy Stephanson, City Manager;
• Mr. Troy Charter, Acting General Manager, Transit Services Department;
• Mr. Alain Gonthier, General Manager, Public Works; and
• Ms. Tammy Rose, General Manager, Infrastructure and Water Services Department (IWSD);

Following discussion and questions of staff, the Committee received the report recommendation as presented.

• Report Recommendation(s)

  That the Finance and Corporate Services Committee recommend that Council receive the 2025 Q2 Operating and Capital Status and 2025 Year-end Forecast for information as detailed in Documents 1 to 4.

  Received

5.2

Proposed 2026 Budget Directions, Timeline and Consultation Process

File No: ACS2025-FCS-FSP-0009 - Citywide

Items 5.1 (2025 Tax, Transit and Rate Supported Programs Operating and Capital Budget Q2) and 5.2 (Proposed 2026 Budget Directions, Timeline and Consultation Process) were considered simultaneously. 

Mr. Cyril Rogers, General Manager, Finance and Corporate Services Department (FCSD) and Ms. Svetlana Valkova (Deputy CFO, FCSD, provided a presentation.  A copy of the slide presentation is filed with the Office of the City Clerk.

The following members of the public spoke before the Committee and provided comments:
•    Marko Miljusevic
•    James McAvoy
•    Alex Cullen*
•    Patrick Bickerton*
•    Etienne Lefebvre*
•    Carolyn Mackenzie
•    William van Geest, Ecology Ottawa
[    * Individuals / groups marked with an asterisk above either provided comments in writing or by e-mail; all submissions and presentations are held on file with the Office of the City Clerk. ]

The following also responded to questions: 

• Mr. Cyril Rogers, General Manager, Finance and Corporate Services Depart-ment (FCSD);
• Ms. Wendy Stephanson, City Manager;
• Mr. Troy Charter, Acting General Manager, Transit Services Department;
• Mr. Alain Gonthier, General Manager, Public Works; and
• Ms. Tammy Rose, General Manager, Infrastructure and Water Services Department (IWSD);

The following Motions were introduced by Councillor Menard and Councillor Brockington.

The Chair ruled that Councillor Menard's motion with respect to U-Passes was out of order, as he noted that staff had been previously directed to negotiate and conclude new U-Pass agreements. As such it would have been a matter of reconsideration and as such, the Motion was not dealt with. 

Following discussion and questions of staff, the Committee carried the report recommendations as amended by FCSC Motion 2025-27-02 on a vote of 9 Yeas to 3 Nays, with Councillor M. Luloff dissenting on 2.b.i), Councillor R. Brockington dissenting on 2.d). and Councillor D. Brown dissenting on 2.d i) and ii).

• Report Recommendation(s)

  That the Finance and Corporate Services Committee recommend that Council approve the following:

  1. The approach and timetable for consultation and consideration of the 2026 Budget as outlined in the report.
  2. The following directions for developing the Draft 2026 Budget: 
     1. That the Draft 2026 Municipal Budget be developed in accordance with Section 290 of the Municipal Act, which requires municipalities to prepare and adopt a balanced budget, ensuring that total expenditures do not exceed total revenues. To balance the City’s expenditures, funding sources include grants from other levels of government, fees and service charges (including rates and fares), property taxes, payment in lieu of taxes, and reserves.
     2. That the Draft 2026 Municipal Tax Supported Budgets be developed with an overall net tax requirement increase of no more than 3.75 per cent including:
        1. The City-wide tax levy increase of up to 2.9 percent, which includes funding for City-wide tax supported services, Library and Public Health, and that Council recommend that the Library and Public Health Boards develop their draft budgets based on their pro rata share of this. 
        2. The Ottawa Police Services levy be increased between 2.9 per cent and 6.5 per cent and that Council recommend that the Police Services Board develop their draft budget based on this. 
     3. That the municipal tax supported services include a list of budget efficiencies for the Draft 2026 Budget. To date the City has avoided an additional 10 per cent tax increase over this Term of Council through $207.5 million of achieved savings. These efficiencies reduce the overall tax supported net requirement while maintaining service and balancing affordability.
        1. That Council recommend that the Library and Public Health Boards develop their draft budgets to include a list of budget efficiencies to reduce the overall tax supported net requirement.
        2. That Council recommend that the Ottawa Police Services Board develop their draft budget to include a list of budget efficiencies to reduce the overall tax supported net requirement.
     4. That the Draft 2026 Transit Budget be developed in consideration of the continued path to financial sustainability, work of the Transit Long-Range Financial Plan Working Group and advocacy for support from other levels of government, including the provincial commitment to upload the Ottawa LRT as announced in the Province of Ontario’s 2025 Budget, and the following items:
        1. A transit levy increase of between 3 and 15 per cent  
        2. A fare increase between 2.5 and 7.5 per cent
        3. A list of operating efficiencies to reduce the overall fare and transit tax levy requirement  
        4. Identify a list of capital investment deferrals for consideration as part of the tabled Draft 2026 Transit Budget
        5. Identify any funding related to the provincial commitment to upload the Ottawa LRT 
        6. Identify federal funding from the Capital Plan under the Baseline Funding Stream of the Canada Public Transit Fund (CPTF)
        7. Identify any other levers for consideration as part of the tabled Draft 2026 Transit Budget 
     5. That the assessment growth taxation revenues generated from new properties be estimated at 1.6 per cent of the current taxation for 2025 and that Council recommend that the Library, Public Health, and the Police Services Boards develop their budgets within this allocation.
     6. That City user fees and charges increase in accordance with the direction outlined in the Fiscal Framework or the Long-Range Financial Plans.  
     7. That the garbage fee be increased in accordance with the approved Solid Waste Services Master Plan and Solid Waste Long-Range Financial Plan, reflecting a 10 per cent increase in 2026. 
     8. That the Draft 2026 Capital Budget be developed in accordance with the direction outlined in the 2024 Development Charges (DC) Provisional Background Study, Long-Range Financial Plans and Fiscal Framework.  
     9. That the Draft 2026 Rate Supported Budget be developed in accordance with the approved 2025 Long-Range Financial Plan VI - Water, Wastewater and Stormwater.  
  3. That the 2026 Recreation, Culture and Facility Services User Fees be approved to allow registrations and rentals sold in 2025 for 2026 to use 2026 rates, as described in this report.  

  Carried as amended by Motion FCSC-2025-27-02, with Councillor M. Luloff dissenting on 2.b. i), Councillor R. Brockington dissenting on 2. d. and Councillor D. Brown dissenting on 2.d. i) and ii).

  For (9)	M. Luloff, L. Dudas, G. Gower, T. Tierney, R. Brockington, C. Kitts, C. Curry, D. Brown, and M. Sutcliffe
  Against (3)	R. King, J. Leiper, and S. Menard

  Carried (9 to 3)
• Motion No. FCSC 2025 - 27-02
  Moved by R. Brockington

  THEREFORE BE IT RESOLVED THAT item 5.2 (2.G) be amended to add:

  1. A list of operating efficiencies to reduce the overall garbage fees.
  Carried
• Motion No. FCSC 2025 - 27-03
  Moved by S. Menard

  WHEREAS the U-Pass agreements between the city and four post-secondary institutions —Algonquin College, Carleton University, St. Paul University and the University of Ottawa—have proven successful for more than a decade, providing students with a means of navigating our city and OC Transpo with a steady and sizable revenue stream; and

  WHEREAS in recent years, revenue from the U-Pass has accounted for 19% to 27% of OC Transpo revenues, annually; and

  WHEREAS encouraging transit use provides financial and environmental benefits to the city; and

  WHEREAS Ottawa’s U-Pass price is among the highest—if not the absolute highest—U-Pass price in Canada; and

  WHEREAS the city has an agreement with each of the four institutions to limit annual price increases to 2.5%; and

  WHEREAS any increase beyond 2.5% would require potential referendums and could end the U-Pass program in Ottawa without explicit agreement between the city and each of the schools; and

  WHEREAS maintaining the integrity of the U-Pass program is vital for OC

  Transpo and the city’s transportation system;

  THEREFORE, BE IT RESOLVED THAT item 5.2 D ii be amended to add:

  The U-Pass will not increase by more than the percentage prescribed in the existing agreements.

  Ruled out of order

5.3

Procurement By-law update – Trade Policy

File No. ACS2025-FCS-PRO-0002 - Citywide

• Report Recommendation(s)

  That the Finance and Corporate Services Committee recommend Council approve the amendments to the Procurement By-Law as detailed in this report and in Document 1.
  
  

  Carried

5.4

2024 Investments, Endowment Fund, and Other Treasury Activities

File No. ACS2025-FCS-FIN-0007 - Citywide

• Report Recommendation(s)
  
  That the Finance and Corporate Services Committee recommend that Council: 

  1. Receive the results of the City’s investments for 2024, as required by Ontario Regulation 438/97 as amended, Section 8(1), and the City of Ottawa Investment Policy. 
  2. Receive the 2024 Long-Term and Short-Term Debt Summary.
  3. Approve the dissolution of the Endowment Committee transitioning the endowment fund holdings to the funds being invested under the prudent investor regime overseen by the Ottawa Investment Board.
  4. Approve the final Statement of Investment Policies and Procedures governing the funds being invested under the prudent investor regime reviewed by the Ottawa Investment Board.
  5. Delegate authority to the Chief Financial Officer/Treasurer to execute the amendments to the Facility Agreements with the Ottawa Community Ice Partners (OCIP), as described in this report. 
  6. Receive the Treasury Services Contracts report as required by Delegation of Authority By-law 2025-69 Schedule B, section 15(2).
  Carried

5.5

West Carleton Environmental Centre Host Community Fee & Legacy Fund Q2 2025 Update

FIle No. ACS2025-FCS-FSP-0011 - Citywide 

• Report Recommendation(s)

  That the Finance and Corporate Services Committee recommend that Council receive this report for information. 

  Received

5.6

New Affordable Housing Tax Subclass

File No.  ACS2025-FCS-REV-0005 - Citywide

• Report Recommendation(s)

  That the Finance and Corporate Services Committee recommend that Council:

  1. Adopt the new Affordable Rental Housing property tax subclass for multi-residential and new multi-residential classes for the 2026 taxation year.
  2. Direct the Deputy City Treasurer, Revenue Services, to conduct a detailed analysis of the associated financial implications once a listing of qualifying properties is available from the Municipal Property Assessment Corporation (MPAC) and recommend an Affordable Rental Housing Subclass discount rate between 0 per cent and 35 per cent through the 2026 annual Tax Policy report.
  Carried

6.

Office of the City Clerk

6.1

Reimbursement of Members’ legal expenses related to the Code of Conduct for Members of Council

ACS2025-OCC-GEN-0008 - Citywide

Councillor R. Brockington introduced a Motion (on behalf of Councillor S. Plante). Following discussion and questions of staff, the Committee carried the report recommendations as amended by FCSC Motion 2025-27-04, with Vice-Chair C. Kitts dissenting.  

• Report Recommendation(s) 

  That the Finance and Corporate Services Committee recommend City Council approve amendments to the Complaint Protocol for the Code of Conduct for Members of Council and the Elected Officials’ Office Manual, as described in this report.

  The item was put to Committee and Carried as amended by Motion FCSC-2025-27-04 with Vice-Chair C. Kitts dissenting. 

  Carried as amended
• Motion No. FCSC 2025 - 27-04
  Moved by R. Brockington

  BE IT RESOLVED THAT the amendments to the Complaint Protocol for the Code of Conduct for Members of Council and the Elected Officials’ Office Manual be deemed to come into force as of January 1^st, 2025.

  Carried with Vice-Chair C. Kitts dissenting.

  Carried

6.2

Status Update – Finance and Corporate Services Committee Inquiries and Motions for the period ending 20 August 2025

File No. ACS2024-OCC-CCS-0099 - Citywide

• Report recommendation(s)

  That the Finance and Corporate Services Committee receive this report for information.

  Received

7.

Strategic Initiatives Department

7.1

Affordable Housing Community Improvement Plan – Applications for Tax Increment Equivalent Grants (TIEGs) Report

File No. ACS2025-SI-HSI-0016 - Ward: Somerset (14) and Rideau-Rockcliffe (13)

Following discussion and questions of staff, the Committee carried the report recommendations as presented.

• Report Recommendation(s)

  That Finance and Corporate Services Committee recommend that Council:

  1. Approve the application submitted by Taggart (City Centre) Ltd. for the property at 299 City Centre Avenue, for the Tax Increment Equivalent Grant (TIEG) under the Affordable Housing Community Improvement Plan (CIP), for a total grant of approximately $6,660,000, in the form of annual grants between $6,000 and $8,000 per affordable unit per year, or 50 per cent of the incremental increase in the municipal portion of property taxes, whichever is less, for a period of 20 years, subject to the establishment of, and in accordance with, the terms and conditions of an Affordable Housing CIP Agreement, and extend the deadline to obtain an Occupancy Permit post-approval from four years to five years;
  2. Approve the application submitted by Bayview Wateridge Inc., for the property at 375 Codd’s Road, for the Tax Increment Equivalent Grant (TIEG) under the Affordable Housing Community Improvement Plan (CIP), for a total grant of approximately $2,640,000, in the form of annual grants between $6,000 and $8,000 per affordable unit per year, or 50 per cent of the incremental increase in the municipal portion of property taxes, whichever is less, for a period of 20 years, subject to the establishment of, and in accordance with, the terms and conditions of an Affordable Housing CIP Agreement;
  3. Delegate authority to the Interim Director of Housing Solutions and Investment Services to execute Affordable Housing CIP Agreements establishing the terms and conditions governing the payment of the Affordable Housing TIEG with the owners and/or beneficial owners for the noted properties at:
     i.    299 City Centre Avenue (Ward 14. Somerset)
     ii.    375 Codd’s Road (Ward 13. Rideau – Rockcliffe)
     with such agreements being to the satisfaction of the City Solicitor and the Chief Financial Officer;
  4. Delegate authority to the Interim Director of Housing Solutions and Investment Services to make minor adjustments to the Council-approved number of units and associated TIEG, within the 50 per cent tax increment cap, prior to the execution of the Affordable Housing CIP Agreement. 
     
  Carried

7.2

Riverside South - Limebank Extension – Stage 2 LRT – Transfer Agreement

File No. ACS2025-SI-HSI-0018 - Ward: Osgoode (20) Riverside-South Findlay Creek (22)

• Report Recommendation(s)

  That Finance and Economic Development Committee recommend Council:

  1. Declare certain lands previously acquired for the purposes of the cancelled North-South LRT project and shown on Document “1” (the “Surplus City Lands”), as surplus to municipal needs 
  2. Authorize the Interim Director, Housing Solutions and Investment, Strategic Initiatives Department staff to execute a Transfer Agreement with Riverside South Development Corp. (“RSDC”) to provide for the transactions summarized in Document “4” attached to this Report (the “Transfer Agreement”) and,
  3. Authorize Housing Solutions and Investment, Strategic Initiatives Department  staff to take such steps as may be required to complete the transactions contemplated in the Transfer Agreement, including the disposal of the Surplus City Lands to RSDC and the acquisition by the City of lands required for the Stage 2 LRT Project (Trillium Line Extension), owned by RSDC and described in Document “2” to this Report (the “RSDC Lands”) as well as a drainage easement over the Drainage Easement lands described in Document “3” to this Report.
  Carried

8.

In Camera Items

• Motion No. FCSC 2025 - 27-05
  Moved by C. Kitts

  BE IT RESOLVED THAT the Finance and Corporate Services Committee resolve in camera pursuant to Subsection 13(1)(a) of the Procedure By-law, as the subject matter relates to the security of the property of the City, to receive a presentation on cyber security and the external threat landscape, which is confidential and will not be reported out.

  Carried

8.1

Cybersecurity Update Q3 – In Camera – Report Out Date: Not to be Reported Out

That, in accordance with Procedure By-law 2025-100, the Finance and Corporate Services Committee resolve to move In-Camera pursuant to Subsection 13(1)(a), to close part of a meeting to members of the public as the subject matter considered is “the security of the property of the City”, at which time a verbal update will be provided on cyber security and the external threat landscape, which is confidential and will not be reported out.

Committee resolved In Camera at 12:59 pm and resumed in open session at 2:23 pm.

Upon resuming in open session, Mayor Sutcliffe advised that the Finance and Corporate Services Committee met In Camera to receive an update on Cybersecurity and the external threat landscape.

These matters will not be reported out as they relate to Subsection 13(1)(a) of the Procedure By-law, as the subject matter relates to the security of the property of the City.

During the in camera session, no votes were taken other than procedural motions and/or directions to staff. 

9.

Information Previously Distributed

9.1

Donation Procedures for Members of Council – Status update reporting

 ACS2025-OCC-GEN-0009

9.2

NOMA 2025 Conference Delegate Report (Riley Brockington)

ACS2025-OCC-GEN-0012

Prior to the Consent Agenda, Councillor Brockington moved a motion to add the IPD to the Agenda. 

• Motion No. FCSC 2025-27-01
  Moved by R. Brockington

  WHEREAS Councillor Brockington’s Information Previously Distributed memorandum (IPD) memo was issued after publication of the Agenda for today's meeting, and adding it to the September agenda instead of the next meeting would allow for timely reporting; 

  BE IT RESOLVED THAT the Finance and Corporate Services Committee approve the addition of Councillor Brockington’s  (IPD) related to the Northwestern Ontario Municipal Association Conference AGM,  be listed for consideration by the Committee at today’s meeting, pursuant to subsection 89(3) of the Procedure By-law (being by-law no. 2025-100).

  Carried

10.

Notices of Motions (For Consideration at Subsequent Meeting)

There were no Notices of Motion.

11.

Inquiries

11.1

VUT Impact on Building Starts and Rental Market

Submitted by Councillor L. Dudas

• What was the total revenue generated from the city for vacant unit tax on condominiums and multi-residential properties with six or less units in the 2022 and 2023 occupancy years?

  In the 2022 Occupancy Year, multi-residential properties with 2-6 units (2.8%) and condominiums (1.9%) had the highest vacancy rate of all housing types, representing 971 units. How many of those units remain vacant in 2023?

  How many multi-residential properties with six or less units that were built in the last 5 years have been charged under the VUT?

  How many planning applications and buildings starts for condominiums or multi-residential units properties with 2 to 6 units have been submitted or undertaken since the launch of the VUT in January 2023? How does that compare to the previous five years?

  How does the above compare with planning applications and building starts for multi-residential properties with seven or more units over the same period of time (2023 to today)?

  Using the VUT declaration data, how many units have transitioned from tenanted to owner occupied since the introduction of the VUT?

  How many of the units that were required to pay a VUT were registered to individuals versus corporations?

  How many units marked tenanted in the VUT declaration were owned by corporations vs individuals?

   

12.

Other Business

There was no other business.

13.

Adjournment

Next Meeting

Tuesday, 7 October, 2025

The meeting adjourned at 2:26 pm.