Chiarelli also wants to put the $332 million redevelopment of Lansdowne Park on hold and said he would push to defer council approval of the project until he fully understood the state of the city’s finances.
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Mayoral candidate Bob Chiarelli thinks he can pull a trick from the era of his first round as head of the Ottawa city council by promising to freeze property taxes in 2023.
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It’s unclear how he would make the magic happen, considering the high rate of inflation and contracted salary increases in the municipal public service.
He said a “top-down review” of the city’s finances by outside experts in the first 100 days of the term would find the savings needed to hold the line on taxes and user fees in year 1 of a Chiarelli.
“I think it’s important to stabilize the situation and one of the ways to stabilize the situation is to freeze taxes,” Chiarelli said in an interview Sunday, noting that “life in Ottawa is becoming unaffordable” for citizens and small businesses. .
He planned to publish his tax freeze proposal on Monday.
Asked if cuts would be unavoidable under his proposed tax freeze, Chiarelli said he disagreed with the word cuts, noting that the city’s annual spending is about $6 billion and that “efficiencies” can be discovered. “.
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“We can put off things that are not absolutely essential until the economy turns around and things get much more normal,” Chiarelli said.
Chiarelli noted that he succeeded in freezing taxes as regional president and again during a three-year term as the merged city’s first mayor just over 20 years ago.
The city’s long-term debt has increased, requiring the municipality to pay more to service the loan, Chiarelli said. The city’s 2021 audited financial statements put long-term debt at $3 billion at the end of the year.
Chiarelli is also concerned about legal disputes related to LRT, the results of which could cost the city more money.
Under Chiarelli’s fiscal proposal, there would be no spending increases in the first year of the term unless they are related to essential health, security and social services.
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Chiarelli said he hasn’t made a decision on whether his freeze proposal would apply to water and sewer rates, which have seen higher annual increases than property taxes.
The level of taxes for subsequent years in the term would be addressed annually, Chiarelli said.
As for the cost of external review to find savings, Chiarelli said “it’s not insignificant,” but the fees and results are often “responsible.”
Chiarelli also wants to call off the upcoming redevelopment of Lansdowne Park. The city wants to build a new arena and bleachers on the north side at TD Place for $332 million, with high-rise buildings whose revenues would help cover the cost of borrowing money for new sports facilities.
The City Council is scheduled to provide final authorization for Lansdowne 2.0 in 2023, but Chiarelli said he would push to defer a decision until he fully understood the state of the city’s finances.
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Under Mayor Jim Watson’s administration, annual tax increases ranged from 1.9% at the 2014 low mark to 3% at the current period’s high mark. Watson’s approach has been to secure council support for an early annual tax increase and craft a budget that matches the revenue projection.
Watson is not seeking re-election.
Mayoral candidates Catherine McKenney and Mark Sutcliffe were asked if they would make campaign promises on taxes and if they think it is possible to freeze taxes in any given year.
McKenney noted the financial strain families are feeling and promoted his “smart” spending approach, but did not discuss his approach to property taxes and whether a tax promise will be part of his campaign.
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“Ottawa families are feeling the impact of rising cost of living,” McKenney said in a statement sent by his campaign.
“It is more important than ever that we spend wisely at City Hall. Budgets are about priorities. Ottawa can become a city that works better for everyone while remaining fiscally responsible. I have a proven track record of saving the city money while improving the services we have. As mayor, I will meet my campaign promises by spending wisely.”
Similar to Chiarelli’s plan, Sutcliffe said he would lead a “zero-based budget” process that would include a line-by-line review of spending, questioning how every tax dollar is spent.
“Without asking the tough questions, high-priority areas can be underfunded and low-priority areas never get tested,” Sutcliffe said in a statement sent by his campaign. “If we just stack one budget on top of another, taxpayers won’t get value for money. We need a new set of eyes and a new approach to make this happen.”
Sutcliffe said there is an “affordability crisis” in Ottawa and, like McKenney, spoke about the “wise” use of tax money.
“This election is about who Ottawa voters trust to help make their lives better and more affordable. Keeping taxes, fees and transit fees as low as possible is an important part of what residents expect their mayor to do,” Sutcliffe said.
The municipal election is on October 24.
