A tale of two budgets

The City of Ottawa's 2025 Budget (adopted in late 2024/early 2025) and 2026 Budget (tabled in November 2025, with final adoption  December 2025) show increases in scale, reflecting growth, inflation, service demands, and priorities like public safety, transit, housing, and infrastructure. Note that 2026 figures are from the draft stage (as of late 2025) a solid basis for comparison.

Key Overall Figures

• 2025 Budget:
  • Focused on a restrained approach with efficiencies (e.g., $54.2 million in savings identified in draft stage).
  • Transit operating budget: ~$856 million (largest ever at the time, with 11.4% increase).
  • Capital investments emphasized road/water/sewer ($184.6 million), housing supply growth, and paramedic enhancements.
  • Property tax increase: 2.9% citywide (including Police), plus 8% for Transit levy.
  • Garbage fee: 7% increase per approved plans.
• 2026 Draft Budget:
  • Operating budget: $5.2 billion.
  • Capital budget: $1.9 billion (higher than 2025's implied ~$1.7 billion in some reports).
  • Larger overall scale, with heavy investments in police (one of the largest increases ever, including 25 new officers), paramedics (23 new), fire equipment, roads ($135 million resurfacing), housing ($23.25 million for affordable projects), and transit.
  • Property tax increase: 3.75% overall (2% citywide municipal levy + Ottawa Public Health/Library/AG, 5% for Police, 8% for Transit).
  • Transit: Net operating ~$906 million in draft approvals; fare increase of 2.5%, maintaining ~67% tax-funded / 33% fare-funded split.
  • Other fees: Increases to water, garbage, recreation, etc., to address pressures.

Comparison Summary (high-level):

• Scale/Growth: 2026 is notably larger, with operating at $5.2B and capital at $1.9B vs. more modest 2025 totals (e.g., transit alone jumped from $856M to ~$906M net). This reflects post-2025 priorities like new Transportation Master Plan rollout and emergency services expansion.

• Property Tax Impact: Higher in 2026 at 3.75% overall vs. 2025's 2.9% citywide (plus Transit). For an average urban homeowner, 2026 draft implies $237 increase; rural lower ($126). Ottawa remains among Ontario's lowest tax rates for large cities.
• Transit Focus: Both years have 8% transit levy hikes and major investments (no service cuts), but 2026 builds on 2025's efficiencies while preparing for expansions like O-Train East. 2025 relied on hoped-for provincial/federal aid; 2026 assumes commitments.
• Public Safety/Emergency: 2026 emphasizes bigger boosts (e.g., new paramedics/fire gear/police officers) vs. 2025's paramedic/equipment focus.
• Housing/Affordability: Both advance affordable housing, but 2026 allocates $23.25M specifically (e.g., Rochester Heights phase 2) amid broader pushes.
• Infrastructure: 2026 ramps up roads/cycling/pedestrian (e.g., priority corridors like Greenbank $56.1M), building on 2025's $184.6M integrated projects.
• Efficiencies/Pressures: Both use service reviews for savings, but external factors (inflation, construction costs, limited senior government funding) drive larger 2026 adjustments.

For deeper details, check official sources:

• 2025 Adopted Budget: https://ottawa.ca/en/city-hall/budget-finance-and-corporate-planning/previous-budgets/budget-2025 (includes full book).
• 2026 Draft: https://ottawa.ca/en/city-hall/budget-finance-and-corporate-planning/draft-budget-2026, plus interactive Budget Explorer (2025 version at open.ottawa.ca; 2026 at ottawa.ca or Engage Ottawa) for charts, breakdowns by department, and downloadable data.
• Engage Ottawa pages: engage.ottawa.ca/city-budget-2025 and engage.ottawa.ca/budget2026 for consultations, magazines, and feedback.

The 2026 budget continues the trend of balancing affordability with investments in core services amid growth and costs