Hamilton’s idea would cost 5 times more in Ottawa
The head of Ottawa’s transit committee estimates it would cost taxpayers $500 more a year to offer free public transit here, as the City of Hamilton is considering doing.
As fares make up roughly half of OC Transpo’s operating budget, Coun. Alex Cullen said doubling the existing transit levy would be a simple way to estimate how much a free service would cost the average taxpayer in Ottawa.
“There is a good argument to reduce the cost of transit, but the question is where to find the money?” he said.
Cullen was responding to reports that Hamilton transit planners are studying making its system free, at a cost to the taxpayer of nearly $31 million per year. The Hamilton report suggests free transit would add $161 more in taxes for a home assessed at $250,000, but Cullen said the cost would be much higher in Ottawa.
In 2006, Hamilton transit logged 21.2 million trips compared to 91.9 million in Ottawa. Ottawa, therefore, would need to make up nearly $165 million a year on the taxpayer, compared to $30.9 million for Hamilton.
Such an increase would represent a 16 per cent jump in property taxes, which Cullen said is too much to ask taxpayers to bear.
But proponents warn against dismissing the idea, saying the environmental and social benefits should also be weighed.
Given the rising cost of oil, the present system is not sustainable into the future, said Hamilton Coun. Sam Merulla, who initially proposed the idea last year.
“Down the road, I think it’s inevitable that every municipality will be offering free public transit. It’s just a question of sustainability,” he said.
