Mayor Bob Chiarelli

City of Ottawa staff have set the stage for a zero-per-cent tax increase and now it's up to the community to say what kind of city they want as a result, says Ottawa Mayor Bob Chiarelli.

"What I want personally is to try to meet public concensus," the mayor said, referring to the attempt to freeze property tax rates. He said the draft budget provides a reality check for the people who don't want property taxes to increase.

Chiarelli made the comments Wednesday in response to the release of the 2004 draft operating and capital budgets.

Staff were given the task of finding $109 million in operational savings, as well as $50 million in immediate capital demands.

As a result, the city has indicated that 750 jobs could be eliminated.

That total includes 250 positions that are already vacant and 270 positions that are seasonal, casual or temporary. About 111 of the job cuts would result from corporate restructuring, 123 from budget reductions and 53 from a trimming of the management ranks.

"We can't meet the payroll with the revenue that's coming in now," acting city manager Steve Kanellakos said during a presentation.

Despite the property tax freeze scenario staff have brought forward, Kanellakos said that 80 per cent of Ottawa residents will still see a property tax increase because of rising assessment values.

Other dramatic proposals include closing two fire stations and nine outdoor pools, eliminating funding for festivals and drastically reducing funding for many social services.

The business community will feel the impact in large reductions to economic development agencies the Ottawa Centre for Research and Innovation, the Ottawa Life Sciences Council and the Ottawa Tourism and Convention Authority. Waste pick-up for 3,500 businesses will also be eliminated and hours reduced at community service centres. In addition, fees for most business-related services and permits will increase.

Greater Ottawa Chamber of Commerce president Gail Logan blasted the draft document for cutting funding to economic development agencies that help bring in increased revenue. "Why aren't we out there getting more revenue?" She also criticized the city for doing what the private sector could do more efficiently and effectively. "Why are they even delivering services that are already in the private sector?" she said.

City staff were able find some efficiencies with which to trim the budget.

The draft budget shows that staff found $28.5 million in "administrative efficiencies," as well as $6.9 million in new revenue and new business opportunities. On the positive side of the ledger, the city will save up to $18 million as a result of the federal government's initiative to eliminate the GST for municipalities.

The draft document indicates that a total of $49.3 million worth of programs and services could be cut if council approves the budget.

In addition, $10.1 million worth of programs will be deferred, including 2.5-per-cent growth in the transit system, hiring new paramedics and purchasing new ambulances.

Overall, the proposed cuts reduce the capital budget to $265.5 million from the $596.5 million that was forecast for the 2003 budget.

From Feb. 12 to 29, the public will have a chance to provide feedback on the proposed budget. In early March, standing committees will review the documents and hear public delegations. Council will then deliberate, make amendments and approve the final budget.

OTTAWA'S BUDGET BY THE NUMBERS

* zero per cent property tax increase scenario

* $2 billion operating budget

* $265.5 million capital budget

* reduction of 750 jobs

* three-per-cent increase to most user fees and service charges

* three-per-cent increase for water and sewer rates