Transit commission greenlights budget with $39M hole
Ottawa's proposed $706-million transit budget counts on $47 million in savings and postponed spending and includes a $39 million hole the city hopes another level of government will fill.
"I still have some significant concerns with the 2023 budget projecting a deficit, which city staff haven't fully been able to explain how we're going to cover off," said River Coun. Riley Brockington, who voted against it Thursday at the end of an 8.5-hour transit commission meeting.
Transit ridership has been hit hard by the pandemic and in the past few years, the province has made up the difference.
Ontario's Ford government gave Ottawa a grant of $65 million last year, which didn't cover the city's transit shortfall. The city had to deplete its transit reserve fund, which is currently in the red to the tune of $2.5 million.
Last year, transit staff based its 2022 budget on ridership returning to 82 per cent pre-pandemic levels — a level few believed realistic.
In fact, the average ridership for last year was only 52 per cent.
Again this year, Ottawa — like most Ontario municipalities — is counting on some help to shore up its transit budget. The city has set a ridership expectation of 70 per cent of pre-pandemic levels, which appears more reasonable given ridership passed 60 per cent three of the last four months in 2022.
Statistics Canada's national urban transit ridership average topped 70 per cent in September and November.
Transit ridership and COVID
Ottawa's transit budget is facing other pressures including a fare freeze, higher fuel costs and $16 million connected to launching the Trillium rail line, which is expected in early September.
OC Transpo is proposing to save $4.4 million by retiring 117 older buses managers say are no longer used and are expensive to maintain.
OC Transpo is also reducing by $42.6 million how much it's putting aside for its capital reserve fund. It says it will save money on items such as getting ready for the western extension of the LRT and reducing spending on bus detours for the LRT construction because of lower ridership.
The city has not provided how much money would be saved for each specific item.
Capital Coun. Shawn Menard dissented on the $42.6 million reduction in capital contributions, but voted for the rest of the transit budget.
Looking to improve service
More than 20 public delegations spoke to a transit service they couldn't count on, with buses that were late or never came. Many spoke of being late for work or school, sometimes having to take a cab or ride-hail they couldn't afford.
The transit commission heard Thursday that on a bad day, there can be 400 bus cancellations.
Despite the tight budget, OC Transpo general manager Renée Amilcar was optimistic that service would become more reliable in 2023. The transit department is continuing to hire new drivers and getting rid of those older buses will mean more attention from maintenance staff on newer ones.
OC Transpo will be hiring the equivalent of 112 full-time new employees, some of whom will be working on the 13-stop north-south Trillium Line.
The budget does not call for any service cuts, but doesn't look to expand routes either. A major route re-organization is set to take place later this year.
An approved motion moved by Brockington would see children up to 12 years old ride for free, up from the current age of eight, although the councillor will have to work with staff to find $87,000 to pay for that.
The transit budget still has to be approved by the full council at its meeting set for March 1.
