Ottawa's aging infrastructure faces $229M funding gap yearly
City staff recommend doubling property tax contributions and drawing down reserves to address crumbling arenas, roads, and rec facilities over the next decade.
The City of Ottawa is staring down a $229 million annual shortfall to maintain and replace aging infrastructure — and the bill will eventually land on residents and future councils.
City staff asked the finance committee to approve a long-range plan to close the gap, which includes aging arenas, recreation facilities, roads, and parks expected to reach the end of their useful life within 10 years. More than 130 facilities fall into this category, with a replacement value of $541 million.
The recommendations approved 9-2 by the committee propose doubling the property tax contribution toward infrastructure from $6 million to $12 million in 2027 and 2028. The city would also allocate 0.15 per cent of growth in property tax revenue to the capital budget each year—estimated at $3.5 million. A one-time draw-down of $32 million from the capital reserve fund and $60 million in additional debt over two years would round out the funding strategy.
Staff suggested a one per cent property tax levy would cost the average homeowner about $46 per year. The city could also generate revenue by retiring and selling high-maintenance facilities no longer suitable for use.
The priority list of 40 facilities needing full replacement has an estimated value of $231 million. Council will see the finalized list in 2027. But even with the proposed measures, staff acknowledged: "it is not feasible to replace all 40 facilities" at current market rates with modern design requirements.
Mayoral and council candidates warned the committee that approving the long-range plan risks "kicking the can down the road" for future administrations. The debate underscores a familiar Ottawa tension: aging public assets, limited budgets, and the question of who pays.