Ottawa residents will have a better idea of ​​how their municipal taxes will be spent next year when city staff tables the City of Ottawa’s draft 2025 budget on Wednesday.

Under proposed budgetary guidelines approved in September, staff will draft a budget that includes a 2.9 per cent property tax increase to cover a variety of municipal services and the Ottawa police tax.

If approved, a 2.9 percent property tax hike would add $125 to the average urban property tax bill. The average commercial property owner would pay $268 more in 2025.

This amount does not include funding to fill a $120 million hole in the transit budget as OC Transpo struggles with low ridership resulting from the COVID-19 pandemic. Ottawa Mayor Mark Sutcliffe and councilors were ask the federal and provincial governments dedicate $140 million per year over three years to public transit to make up the deficit.

Without this funding, staff say the city may have to increase transit taxes, increase fares, adjust fare reductions or consider operational deficiencies and service reductions.

A 37 percent increase in the transit tax would equate to a 7 percent hike in property taxes, which would see homeowners facing a 9.9 percent tax hike in 2025.

Councilors approved a budget of 5.8 billion dollars for the city in 2024, which included a 2.5 percent increase in property taxes, a 2.5 percent rate increase and a 2.5 percent increase in the Ottawa Police Service budget.

Some community groups urged the city to consider other revenue-raising tools, including increasing property taxes and parking fees. The groups are seeking increased funding for public transit and affordable housing.

Other Canadian cities facing significant tax hikes in 2024 include Toronto: 9.5 percent, Vancouver: 7.5 percent, Edmonton: 8.9 percent and Calgary: 7.8 percent. hundred.

Sutcliffe has defended keeping property taxes low, citing a campaign promise when he ran for mayor.

Councilors will discuss and debate the proposed budget on Wednesday and at committee meetings over the next three weeks before final approval on December 11.