City of Ottawa forecasts $14.4M surplus in 2018

City Hall

As the city heads into a fall election, finance officials are predicting that the municipality will end the year with a sizable surplus.

In a mid-year report being tabled at Monday’s finance and economic development committee, city staff forecast a full-year surplus of $14.4 million.

Here are some of the reasons cited by city staff for the surplus:

  • A booming construction sector is generating additional building permit revenue;

  • Unfilled vacancies at city hall are reducing compensation costs;

  • Reduced demand for cultural and recreational programs;

  • Higher investment income;

  • Higher revenues from fines and penalties;

  • Lower bank service charges; and

  • Purchasing discounts

Included in the $14.4-million forecasted surplus is $5.1 million from water and sewer services.

At the same time, the city’s community and social services department is forecasting a deficit of $5.7 million, primarily a result of long-term care compensation due to sick leave and around-the-close coverage as well as shelter costs and growing demand for accomodations.