OC Transpo finances in 'very, very good shape,' says city - Action News
Home WebMail Monday, November 11, 2024, 04:58 AM | Calgary | -1.3°C | Regions Advertise Login | Our platform is in maintenance mode. Some URLs may not be available. |
Ottawa

OC Transpo finances in 'very, very good shape,' says city

The dire picture for OC Transpo'sfinances during thesecond year of the COVID-19 pandemic appears to have improved greatly.

Despite pandemic and low ridership, city transit department not in peril for 2021

A person wearing a mask steps onto a red and white city bus.
Nine OC Transpo bus routes will be suspended in mid-June, mostly those carrying suburbanites to offices downtown. More than a dozen public delegations addressed the transit commission Wednesday calling for better service, not cuts. (Francis Ferland/CBC)

The dire picture for OC Transpo'sfinances during the second year of the COVID-19 pandemic appears to have improved greatly.

Back in the fall, the City of Ottawapredicted a deficit of $73 million for transit operations, a figure that was based on what now appears to be an optimistic projection that ridership would average 72 per cent in 2021. The pandemic carries on, however, and overall ridership inthe first quarterhasn't come close to that estimate, averaging below 30per cent with far fewer fares paid.

Despite this,a report with updated projections that goes to the finance committee on April 6 will show OC Transpo shouldn't struggle this year.

"Right now you're in very, very good shape for 2021," transportation general manager John Manconi told the transit commission Wednesday.

In 2020, transit revenues suffered pandemic-related pressures of$108 millionbut COVID-related funding from upper levels of government covered all of it, according to areport by finance staff.

In fact,the reportstates$62 million was left over to be used in2021 andspent byMarch 31. The Ontario governmenthas also confirmed an extra$73.3 million for the rest of the year, for a total of $135 million in 2021.

Meanwhile, the federal government last weekannounced a doubling of gas tax transfers to municipalities the City of Ottawa is set to receive an extra $57 million, of which some typically goes to transit and its budget still needs to be tabled on April 19. The transit department has also found several million in savings.

Commission hears about upcoming changes

The outlook might have improved, but on April 21 transit staff will still give transit commission criteria on which to base deeper transit cuts, if they need to be made. Such cutswould take until 2022 to implement, Manconi said, but he doesn't even suggest they make them.

"This team is not recommending drastic service cuts," Manconi said.

Wednesday's meeting, however, did focus on changes to take effect in mid-June that involve suspending some bus routes, shortening others, and sending some buses by only every 30 minutes.

The moves would save $5.5 million by end of year, would reduce the workforce by 70 people through redeployment and attrition.

Route changes draw outcry

More than a dozen transit riders and advocates addressed the commission Wednesday, urgingOC Transpo not to cut serviceand to think ofriders who have no other transportationchoices.

Jonathan Davisrides downtown daily with his son, and says the pair used to stand on a crowded busbefore thepandemic but now sometimes find themselves alone.

Davis thinks OC Transpo should pursue new riders by offering better service and prices.

"You're making the cuts based on ridership that's decreased on these routes," Davis told commission while audibly riding the LRT. "You're not even coming close to measuring the untapped market you have in these neighbourhoods, the people you've been excluding for years."

Sofia Descalzi,in her mid-20s and has no car, said the new route changes will add 10 minutes to her commute from Beacon Hill.

"I want to live here, I want to stay here, but I do not want to live in a city that's disconnected and where it's hard to get around," said Descalzi.

Transit staff insisted the changes were not cuts, but "adjustments" because no area of the city would lose transit permanently and promised to restore service wheneverridership bounces back.

"When you only have two people on a bus, the taxpayers of Ottawa expect us to do something about that," explainedtransit commission chairAllanHubley.

CBC Newsletters

Add some good to your morning and evening.

A variety of newsletters you'll love, delivered straight to you.

...



Discover all CBC newsletters in theSubscription Centre.opens new window

This site is protected by reCAPTCHA and the Google Privacy Policy and Google Terms of Service apply.