$10 million in red-light camera revenue not allocated to Ottawa’s road safety fund, audit finds

A red light camera sign is seen in Ottawa in this undated photo. (CTV News Ottawa)

Ottawa’s auditor general has found millions of dollars in revenue from the city’s red-light cameras could have been allocated to road safety initiatives over the past four years, with the funding supporting the City of Ottawa’s general operating budget and police.

Auditor General Nathalie Gougeon’s audit of Ottawa’s Red-Light Camera and the Automated Speed Enforcement programs found “multiple best practices” have been embedded within the programs, including the use of data to determine the locations of the cameras.

Ottawa currently has 85 red light cameras at intersections across the city, along with 60 photo radar cameras located in school zones, community safety zones and “high speed” locations. Revenue generated from the cameras supports Ottawa’s Road Safety Action Plan, which funds road safety initiatives across the city.

However, Gougeon’s report shows approximately $10.7 million in gross revenue generated by new red-light cameras installed since 2020 has not been transferred to the Road Safety Reserve Fund.

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The report, to be presented to the Audit Committee on April 29, shows the Road Safety Action Plan approved by Council in December 2019 included a recommendation that revenues from “new red-light cameras installed beyond 2020, be allocated to the Road Safety Action Plan Program.” Ottawa has installed 24 new red-light cameras since 2020.

“Since that Council direction, no revenues from net new red-light cameras has been allocated to the Road Safety Reserve Fund,” Gougeon’s report said. “The audit found revenue generated from the Red-Light Camera program is exclusively allocated to the City’s operating budget along with an annual transfer to the Ottawa Police Service.”

Management told the auditor general that when the Road Safety Action Plan was developed, a “baseline revenue target” of $11.75 million was calculated to allocate to the City’s general operating budget, according to the report. Management said it was determined revenues above that amount would be allocated to the Road Safety Reserve Fund, according to the report.

The auditor general notes a decision was also made to allocate an estimated $3 million a year from the red-light camera revenue for the Ottawa Police Service.

“Given the nature of the transfer, the City did not have an expectation that the funds would specifically be used for road safety,” the report says.

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Gougeon’s report says that despite 24 new red-light cameras being installed since 2020, the audit found the program has fallen short of the established baseline target of $11.75 million set by city staff since 2021.

“Management has indicated that this was caused by a combination of changes in driver behaviour and the result of the pandemic, with less cars on the road. As noted, no revenue has been transferred to the Road Safety Reserve Fund from the Red-Light Camera program.”

The audit shows between 2021 and 2024, $32.9 million in red light camera ticket revenue has been transferred to the city’s operating budget, while $8.4 million has been allocated to the Ottawa Police Service.

“Based on our own analysis of ticket volume generated by new red-light cameras introduced after 2020, approximately $10.7 million in gross revenue has been generated by these cameras that could have been transferred to the Road Safety Reserve Fund,” the report states, adding management indicated “it was assumed” Council’s direction would not have an impact on the operating budget.

“Not allocating net new revenues generated from new red-light cameras installed after 2020 to the dedicated Road Safety Reserve Fund means that these funds will not be used exclusively for road safety initiatives. This can impact the level of public trust in the program as well as limit road safety outcomes that could be achieved through road safety initiatives funded by red light camera revenues.”

The auditor general’s report recommends city staff “revisit the approach for allocating revenues from the Red-Light Camera program to the Road Safety Reserve Fund.” Staff say management agreed with the recommendation, and staff will present a report to council in the fall on budget allocations.

Gougeon’s report finds $5 million in 2023 and $29 million in 2024 from the photo radar cameras has been transferred to the Road Safety Reserve Fund. However, the audit found the revenues being generated from the program and transferred to the Road Safety Reserve Fund for road safety initiatives is not being reported.

“Formal reporting of the amount of automated speed net revenues used to support road safety initiatives would increase transparency and better demonstrate the value of the program and how it is contributing to the overall goal of improved road safety,” the report says.

The auditor general’s report makes several recommendations to “improve effectiveness of the program” and in “demonstrating how the programs are supporting the overall objectives of improved road safety.” The recommendations include:

• Review and update the site selection methodology for photo radar cameras to “incorporate a more balanced approach across all potential sites.” The audit says while the city focuses on speed and traffic volume to pick locations, “it can result in a disproportionate weighting of traffic data.”
• Establishing performance indicators for the Red-Light Camera program to indicate the impacts on overall road safety. Gougeon’s report notes the program has not established any formal key performance indicators to demonstrate the impact on safety.
• Expanding the performance indicators for the Automated Speed Enforcement Program. The audit notes Ottawa only focuses on speed reductions, “They do not provide a complete picture of the Automated Speed Enforcement Program’s contribution to broader road safety outcomes.”

The City of Ottawa initially launched a Red-Light Camera pilot project in 2000, with two cameras rotating at eight locations. The photo radar camera program launched in Ottawa in 2020.