Ottawa’s
transit services
saw a deficit of $6.6 million in the second quarter of this year, according to a report before the city’s finance committee on Sept. 2.
Among the reasons: delayed implementation of
New Ways to Bus,
higher Para Transpo service delivery costs and Canada Labour Code change for sick leave costs. The shortfall was partially offset by lower compensation due to vacancies and lower diesel fuel costs, said the report.
Meanwhile, transit revenues were $3.8 million below budget, mainly the result of lower-than-budgeted
fare
revenue, lower provincial funding resulting from lower Transit Payment Agreement expenditures, offset partially by higher gas tax revenues.
In other areas, there was also a deficit $9.7 million on tax-supported programs and a surplus of $8.8 million in rate-supported programs such as water, sewer, and stormwater.
The overall deficit was $7.5 million.
The year-end forecast for the tax-supported programs is a projected deficit of $2.1 million, a deficit of $46.7 million for transit services and a surplus of $11.5 million for the rate-supported programs.
As part of the 2024 surplus, the city updated its reserve policy to include a “one-time mitigation measure” of $36 million to offset the potential risk of a 2025 operating deficit for transit if funding from senior levels of government is not received, said the report.
Overall, the deficit is forecast to be $37.3 million, “which is effectively a balanced budget overall with the exception of the $36 million transit funding from senior levels of government,” said the report.
Among the highlights of surpluses and deficits in the second quarter:
- Public Works had a deficit of $25.1 million. That included a $27.8 million deficit due to heavy snowfall early in the year. Parks maintenance had a deficit from increased vehicle-related costs, though this was partially offset by delayed spring contractor work, while forestry services saw a surplus from delays caused by limited contractor availability.
- Community and Social Services had a surplus of $6.8 million, partially as a result of additional revenue in the Municipal Child Care Centres due to the new provincial funding model and additional resident accommodation and provincial revenue in Long-Term Care. That was partially offset by higher expenses for ridership costs associated with the Ontario Disability Support Program Community Bus Pass and EquiPass.
- Recreation, Cultural and Facility Services had a deficit of $1.9 million, driven by aquatics and specialized and city-wide programs, which reported a deficit of $2.4 million due to higher facility maintenance and compensation costs. This was partially offset by higher-than-budgeted program revenues.
- Community Recreation and Cultural Programs reported a surplus of $1.2 million, resulting from lower compensation costs and higher revenue in registrations, short term and arena rentals.
- Finance and Corporate Services had a surplus of $1.3 million, attributed to staffing delays, increased tax and water user fee revenues and higher-than-anticipated revenues from marriage licensing and related services.
- Strategic Initiatives had a surplus of $1.4 million, largely due to vacancies in the first half of the year, as well as purchased services savings.
- Emergency and Protective Services had a surplus of just over $1 million because of higher-than-anticipated parking fines, compensation savings from vacancies and deferred spending on materials and services.
- Elected officials spent $918,000 less than budgeted, primarily because of a one-time increase to constituency services budgets that remained partially unspent at the end of the second quarter.
- The office of the auditor general had a surplus of $186,000 due to vacancies and the timing of purchased services.
- Legal services had a deficit of $525,000, driven by increased arbitration costs and external legal services.
