On Nov. 10, residents re-elected Mayor Bob Chiarelli to a second term at the helm of the amalgamated City of Ottawa. It was a solid win for the mayor, who, with no real opposition, put forward a vague platform of no tax increases and little else of substance. Notable, however, was the fact Chiarelli was beaten by provincial enforcement officer Terry Kilrea in several rural wards. Observers said rural voters were expressing their disillusionment with amalgamation, as well as with other policies related to bilingualism and the anti-smoking bylaw.
Voters also went to the polls Oct. 2, tossing out the Conservatives and ushering in Dalton McGuinty's Liberals. In 2004, people will be called to vote at the federal level, with Prime Minister Paul Martin expected to call a spring election.
With all these elections - and what appears to be a Liberal love-in - officials and observers at the local level are rubbing their hands with delight at the possibilities for Ottawa. People are speculating the mayor's connections could harvest a big payday for the city's infrastructure needs. Specifically, a portion of the gas tax that would cover the city's transit needs, including the infamous O-Train. However, a dark cloud is descending on official Ottawa, as the fiscal realities of both the provincial and federal governments sink in. McGuinty has inherited a $5-billion-plus deficit and, at the federal level, health care has quickly eaten up any surplus that would have gone to cities. On the plus side, a new deal for cities appears to have made it to the third or fourth priority on Martin's agenda. In the meantime, local officials have to clean up their own back yard, as the city struggles with a $109-million operational shortfall and a minimum $50-million capital shortfall. Complicating matters is the mayor's promise not to increase the property tax rate.
Owners of Ottawa's small and medium-sized businesses united this summer to form the Coalition for a Successful Economy. (Which begs the question, what other kind of economy would you want?) The group, spearheaded by the Greater Ottawa Chamber of Commerce, the Canadian Federation of Independent Business and the National Capital Business Alliance, boasts that it represents 100,000 local employees who are part of 20 organizations. The right-wing group was borne out of the lingering perception of an anti-business agenda at city hall. It cited the fact the mayor put the blame for an unforeseen $23-million property tax increase at the feet of the business community, since any tax increases for business owners are capped at five per cent. Local businesspeople also cited red tape at city hall, financial mismanagement and delays in obtaining permits as proof of an anti-business sentiment, while also pointing to amalgamation, social engineering and a council heavily weighted to the left.
Although it was created out of protest, the group appears to have led to better communication between business and city hall. The coalition met with Mayor Chiarelli and senior staff this summer. The exhaustive meeting addressed every concern in detail, somewhat easing the perception of an anti-business sentiment. However, a right-wing movement appears to be picking up steam at city hall, with Councillor Jan Harder saying she will run for mayor in 2006. Harder is conducting a parallel pre-review of the city's finances, calling in a high-powered group of fiscal conservatives to help. The group includes Canadian Taxpayers Federation former president Walter Robinson, Greater Ottawa Chamber of Commerce reps and a couple of former senior administrators from the old city of Nepean. To date, the group has found $40 million in potential savings and promises more to come.
Fire policemen? Cut money for the Tulip Festival or the Ottawa Centre for Research and Innovation? Shut off air conditioning in buses? These are just some of the suggestions staff have offered as part of the universal program review and opportunity log. Although some councillors have latched on to doomsday scenarios, calling the suggestions "death wishes" and "gutwrenching", most are taking a practical approach to finding $109 million in operational savings. They've got a tough job ahead of them as they start to deliberate the 2004 budget. Creating even more of a challenge is a little motion approved in December to avoid raising property taxes. The rate may not increase, but some people will have to pay more anyway as property tax values skyrocket. The budget deliberations take on even more importance this year as Mayor Chiarelli has prefaced the issue with demands for both the provincial and federal governments to acknowledge the impossible situation faced by growing municipalities: exploding populations, increased demand for services, downloading, a "broken" property tax system and stagnant revenue sources. Chiarelli is one of dozens of Canadian mayors screaming for a new deal for cities, which would acknowledge the economic generation powers of municipalities in Canada. The business community says the city must get its own financial house in order before it taps into any new revenue sources. Whatever the outcome of 2004 budget deliberations, there promises to be fireworks as special interest groups, concerned residents and councillors fight to keep their respective pet projects on the books.
