Starting in the upcoming year, Ottawa residents utilizing pre-authorized debit payments for their water bills or property taxes will notice a 55-cent service fee per transaction. Some individuals, like Ralph Anzarouth, express feeling like they are being incrementally charged. Anzarouth criticized the fee as a sly method of increasing revenue rather than offering a benefit.
While the fee may seem insignificant to many, Anzarouth argues that it penalizes responsible homeowners. He sarcastically praised the city’s “innovation in modern revenue generation.” Anzarouth highlighted that the fee could potentially escalate in the future, leading to unexpected additional costs for residents.
Online feedback mirrors Anzarouth’s sentiments, with many residents perceiving the service fee as a revenue-generating tactic by the city. Property owners in Ottawa have multiple payment options for taxes, including pre-authorized debit and installment plans, as outlined in a city staff report from April.
The city recently informed residents of the new fee through a letter. Deputy city treasurer Joseph Muhuni explained that the fee aims to cover the expenses associated with maintaining the service and offset the higher processing costs of automatic payments compared to other electronic payment methods.
According to the city staff report, each pre-authorized debit transaction costs 74 cents. The new fee is designed to bridge the gap in administration costs between pre-authorized debit and other electronic payment methods. Muhuni clarified that historically, the city covered these expenses, but the new fee shifts towards a user-pay model.
The fee is estimated to generate around $820,000 annually, based on the previous year’s data. In 2024, the city had over 100,000 tax accounts and nearly 90,000 water utility accounts on pre-authorized debit plans, with an average of 1,500 additional transactions processed annually.
Barrhaven East Councilor Wilson Lo acknowledged residents’ frustrations, emphasizing that while 55 cents may seem minimal, when combined with other city charges, it contributes to a larger financial burden on residents.
