Overview

During the City of Ottawa's 2002 budget process, a funding gap in the City's capital program was identified. More detailed study was undertaken and this funding gap was forecast to be $270 million by 2006, or approximately $100 million each year from 2004 on. As a result, Council directed staff to prepare a long-range financial plan to outline the City's operating and capital needs, and to recommend strategies to address the funding gap.

In response, this long-range financial plan examines operating and capital needs over a period of ten years (2002-2011), sets out assumptions on which these needs are based, presents existing funding sources, outlines potential new funding sources (both those under Council's control and those which may require decisions of other parties), and recommends actions by which the City can secure a solid financial future.

The long-range financial plan sets out a short-term capital forecast (2002-2006), and a long-term capital forecast (2007-2011). The short-term forecast provides significant detail on projects both anticipated and now underway. The long-term forecast offers reasonable spending estimates by grouping related projects together in spending envelopes. This two-part method has been used because planned projects may be affected over time by many variables, including economic fluctuations, changing growth rates, amendments to legislation and regulations, and further provincial downloading.

Although, this long-range financial plan constitutes a comprehensive examination of the City's capital and operating needs, additional work remains. Next steps will include submission of the draft 2003 budget estimates, an asset management review for transportation, water and wastewater infrastructure, and a final version of the City's Official Plan. A second phase of the long-range financial plan will be developed based on this information and the results of the City's other growth plans (the human services plan, the arts and heritage plan, the economic plan, and the corporate strategic plan). This second report will provide a more detailed ten-year forecast that will be submitted to Council in late 2003, along with the 2004 draft budget estimates.

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