Burggraaf: Here's why the feds, and province, must pay Ottawa its fair share

If the city has to raise property taxes to make up a deficit in payments from the federal government, the feds are essentially transferring that obligation to their own employees who live in Ottawa.

Published Sep 09, 2024  •  Last updated 0 minutes ago  •  3 minute read

Mayor Mark Sutcliffe wants the federal government in particular to ante up on payments in lieu of taxes for federal properties in the capital. Photo by Jean Levac /POSTMEDIA

Last Wednesday, City of Ottawa staff provided an eye-opening presentation to city council on the state of Ottawa’s finances and operational issues ahead of the city’s budget deliberations.

This follows Mayor Mark Sutcliffe’s launch of his Fairness for Ottawa campaign, advocating for Ottawa’s equitable share of federal and provincial funding. The mayor’s initiative highlights the need for Ottawa to receive its fair portion of federal “Payments in Lieu of Taxes” (PILTs) and a commitment to stable transit funding.

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And while the Greater Ottawa Home Builders’ Association supports the mayor’s efforts, what crossed my mind when listening to the presentation was something that the majority of us were doing last Tuesday: sending our kids off to the first day of school.

My family is lucky to live close enough to school for our youngest to be a “walker” but not every child can live close enough to their school to be able walk to it everyday.

Similarly, not everyone can live close enough to walk to work, or shopping, or the multitude of social, music and sporting events that Ottawa hosts throughout the year.

Housing and transportation — both by car and by public transit — are intrinsically linked to our overall cost of living, our lifestyle, and how we interact with our community.

Fairness for Ottawa speaks to these issues because this funding — which isn’t a question elsewhere but somehow is in this city — is crucial for the city’s growth and development into a modern metropolis with the status of a G-7 capital.

The federal PILTs are particularly frustrating as these may add to the tax burden of Ottawa’s residents, many of whom are federal government employees. If the city has to raise property taxes to make up a deficit in PILTs, the federal government is essentially transferring that obligation to its own employees.

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Similarly, when the province doesn’t provide appropriate support for transit, Ottawa residents, both current and future, are left holding the bag. Interest payments on Stage 1 of LRT are part of a new home’s development charge. So new home buyers years from now will be paying the interest on the funds the city had to borrow for LRT construction, when the province should have provided its fair share in the first place.

Equitable funding for the city’s infrastructure projects is integral to supporting housing supply and affordability across Ottawa. By advocating for Ottawa’s fair share, the mayor’s campaign aims to promote a thriving and sustainable city, ultimately benefiting all residents.

As a key stakeholder in the community, GOHBA echoes the call for ongoing support from both federal and provincial governments.

Alleviating financial pressure on the City will allow for a balanced approach to housing-related matters, such as development charges and infrastructure investment, which are crucial if we’re going to reduce costs and increase the housing supply so that more Ottawans have the opportunity to live in their desired home in their desired neighbourhood.

GOHBA believes in working collaboratively with all levels of government to ensure Ottawa’s continued prosperity. We support Mayor Sutcliffe’s call for fairness and are committed to advocating for the resources Ottawa needs to thrive.

Jason Burggraaf is the Executive Director of the Greater Ottawa Home Builders’ Association, the voice for Ottawa’s home building community since 1951.

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