Fact Sheet on the City of Ottawa’s Long-Term Debt

The 2012 audited statement results are in line with the Council-approved Long Range
Financial Plan and Budget 2012.

Municipal debt may only be used for capital expenditures, not for operating costs.

At the end of 2012, the City owned capital assets that cost $15.7 billion when originally
acquired. With outstanding net debt of $1.4 billion, that means only 10% of the value of the
assets was funded from debt.

To put this in context for a taxpayer, that would mean a $30,000 mortgage on a home
valued at $300,000.

The $15.7 billion in capital assets represents $16,764 per capita.

Of the total $1.4 billion in debt outstanding at the end of 2012, $245 million was authorized
by this current Council.
 $200 million for Ottawa on the Move program and the balance for development
charge and rate supported debt.

The City’s two credit rating agencies consider the City’s debt levels to be manageable.
They have recently re-confirmed the City’s credit ratings:
 Moody’s: Aaa (highest rating possible)
 Standard & Poor’s : AA+ (second highest rating)

In 2012, principal and interest payments equaled 7.9% of City-raised revenues versus the
25% limit.
 Under the borrowing limits imposed by the Province of Ontario, the City can issue
debt up to the point where all the principal and interest repayments in the year are
equal to 25% of the yearly revenues raised through taxation and user fees.

In 2012, debt cost repayments for long term debt represented 5.45% of City-raised
revenues compared to Council’s 7.5% limit.
 In addition to Provincial limits, in 2001, City Council established an upper limit on
debt repayments for tax and rate supported debt at 7.5% of City-raised revenue.

Compared to Toronto, Montreal, Calgary, Edmonton and Vancouver, at the end of 2011
(latest financial statements issued) Ottawa has the lowest total debt per capita ($1,535)
and the third lowest tax-supported debt per capita ($887). (Table 1)
[Type text]
Table 1 - Ottawa Municipal Debt Comparison (2011) *
Net tax debt
per capita
$
Ottawa
Toronto
Vancouver
Calgary
Edmonton
Montreal
887
1,113
2,535
819
859
1,950
**Net total debt
per capita
$
1,535
2,427
3,647
3,683
2,898
2,939
* Calculated by DBRS – Ottawa calculated using DBRS methodology
** Includes rate, gas tax and mortgage debt