Ontario Construction News staff writer
The City of Ottawa has released its draft budget for 2025, focusing on transportation improvements and expanding affordable housing options. The budget reflects a goal to maintaining essential services while addressing current financial challenges.
Over the past two years, the city says in a statement it has implemented strong financial planning, conducted service reviews, and adopted innovative solutions. The 2025 draft budget identifies $54.2 million in savings through service reviews and efficiency measures, bringing total savings since 2023 to $207.7 million.
“This budget has been difficult to prepare, especially with the affordability crisis facing many residents,” said Mayor Mark Sutcliffe. “In order to invest in what matters most—emergency services, public transit, affordable housing, roads, and supports for the most vulnerable—we’ve had to make tough decisions. This budget strikes a responsible balance, keeping tax increases low while addressing Ottawans’ top priorities.”
Investments in affordable housing
The draft budget includes significant investments aimed at addressing Ottawa’s housing crisis, particularly in affordable housing. Key initiatives include:
- $120 million over three years from the Provincial Homelessness Prevention Program to alleviate pressures in the homelessness sector, expand overflow shelters, and address basic needs for vulnerable populations.
- $48.8 million from the Ministry of Municipal Affairs and Housing’s Homelessness Prevention Program to support shelters, housing loss prevention programs, and supportive housing initiatives.
- $34.2 million from Immigration, Refugees and Citizenship Canada’s Interim Housing Assistance Program to assist with the City’s response to asylum seekers.
- $18.9 million in base funding for the Housing Long-Range Financial Plan, with potential for an additional $4 million pending approval of Vacant Unit Tax changes.
- $15.9 million through the Reach Home program to fund housing providers and support the City’s Housing First initiatives.
The City is also working to streamline housing development through zoning updates, faster approvals, and leveraging up to $176.3 million from the Housing Accelerator Fund to support affordable housing projects.
Strengthening transportation networks
The draft budget includes major investments in transportation infrastructure to improve mobility across the city. Key projects include:
- $200 million for integrated road rehabilitation projects to ensure Ottawa’s road network remains in good condition.
- $89.6 million for road resurfacing and upgrades citywide, with $13.5 million earmarked for local road renewal to meet community needs.
- $25.7 million for pedestrian and road safety initiatives, including $12.7 million for signalized intersections.
Public transit is also a key focus, with investments aimed at expanding service reliability and efficiency. Notable updates include:
- The opening of O-Train Lines 2 and 4 by the end of 2024 and the extension of O-Train Line 1 to Trim Station in 2025.
- Replacing more than 100 aging buses with zero-emission vehicles.
- Implementing the New Ways to Bus route network to improve service efficiency.
- Expanding Para Transpo service to meet rising demand.
The draft budget will be reviewed by all standing city council committees in the coming weeks and could be approved by city council on Dec. 11.
“Draft Budget 2025 is a pivotal step in addressing the city’s most pressing issues,” said city manager Wendy Stephanson. “We’ve made significant progress in advancing Council’s priorities, and this budget demonstrates our ongoing commitment to tackling the challenges facing Ottawa—from housing and transportation to the well-being of our most vulnerable residents.
“Our careful financial management has positioned us well, with a healthy reserve, low debt, and a strong credit rating, allowing us to make prudent investments in the city’s future.”
For more details on the 2025 draft budget, residents can visit ottawa.ca.