OC Transpo posted a multi-million-dollar budget deficit last year, mainly due to fewer passengers riding buses and the O-Train and no funding from upper levels of government. A report for the finance and corporate services committee shows OC Transpo ran a $52-million deficit in 2025, up from a $25 million operating deficit in 2024. “Revenue pressures resulted from lower ridership, increased use of discounted fares, reduced reliance on gas tax and reserves due to unissued debt, and $36 million of senior government funding that was not received,” staff said. OC Transpo ran a $20.2 million deficit in its fare revenue budget due to lower ridership and people using discounted fares. Statistics show there were 70.7 million passenger trips on OC Transpo buses and the O-Train in 2025, up 3.9 per cent from 2024. The report shows OC Transpo saved money with the delayed opening of the O-Train East Extension from Blair Station to Trim Station, and $2 million in performance deductions to Rideau Transit Maintenance. The transit service also found savings in reduced spending on diesel fuel and facility costs. The city will use $44.9 million from the Tax Stabilization Reserve and $7 million from the Transit Operating Reserve to cover the budget deficit. Overall, the city posted a $20.9 million budget deficit in 2025, mainly due to the OC Transpo budget deficit. “Had this funding been provided, the overall City results would have been in a $15 million surplus,” staff said. City of Ottawa services post surplus The City of Ottawa ended 2025 with a $31.9 million budget surplus in the tax-supported programs. The surplus came despite the Public Works department budget being buried by snow. Staff say the Public Works department posted a $28.7 million budget deficit mainly due to Road Services dealing with a “significantly harsher winter season.” “Seventy snow days, 43 per cent above the five-year average and 294 cm of snowfall, 40 per cent higher than average, requiring increased deployment of staff and equipment,” staff said. The Emergency and Protective Services section posted a $4.3 million budget deficit due to higher compensation costs and increased Workplace Safety and Insurance Board charges in fire services. Departments that posted a surplus include Community and Social Services due to additional revenue in Municipal Child Care Centres and a $1.7 million surplus in Recreation, Cultural and Facility Operations Departments due to higher revenues from registrations and rentals. The Corporate Commons Expenditures and Revenues budget saw a $40 million surplus due to higher early payment discounts, lower financial charges related to new debt and investment income exceeding expectations. Ottawa also saw a $16 million surplus in tax-related expenditures and revenues due to higher supplementary taxation and payments in lieu of taxes. The Ottawa Police Service ran a $25.133 million deficit last year.
