Ottawa Mayor Larry O'Brien backed away from his promise to keep taxes frozen when he took part in a unanimous city council vote to hike the city's property taxes almost five per cent.

Councillors cheered and applauded as O'Brien voted "yes" to the 4.9 per cent increase during Wednesday's budget meeting.

O'Brien said the amount was far from his oft-repeated election slogan of "zero means zero," but it was the right thing for the city.

"We are facing some harsh realities," the mayor said, "and this is too good a city for me to let a stubborn position sit between us and the quality of life that every citizen in Ottawa is asking for."

The total includes two increases that O'Brien previously supported:

• A 1.44 per cent increase to fund police services.
• A two per cent levy to pay for maintenance and repairs to the city's aging infrastructure.

The remainder is a 1.46 increase to regular property taxes. The items will all be charged to a household based on the value of their property, but will appear as separate lines on the municipal tax bill.

The final tax rate will be set in April.

Coun. Rick Chiarelli said the mayor has learned an important lesson: "Value means value and no matter what price you are paying, you have to look at the services you are getting for it."

He added: "We're getting pretty darn good services for the amount we're paying right now."

But Chiarelli also said that without the mayor's zero per cent tax increase target, the increase might have been much higher than 4.9 per cent.

The council vote, which set the 2008 operating budgets for front-line services and the capital budget, also included a number of other cost increases for taxpayers:

• Transit fares will go up 7.5 per cent.
• Parking rates will go up 50 cents per hour and will also apply on weekends and evenings.
• Adults will pay more to use city recreational facilities.
• Solid waste disposal rates will go up.
• A development application will cost builders more.

However, there were increases to services as well:

• The Museum Sustainability Strategy will get $680,000.
• The city will spend $134 million on housing.
• Rural libraries and rural ambulances will get $330,000 to boost service.
• The city is to hire 38 new paramedics at a cost of $1.575 million.

The city also committed to starting a new fund for central area transit improvements with a focus on better traffic flow.

During the next four months, the city is to look for ways to reduce administration costs. Savings found could be used to lower the final tax rate that is set in April, said a City of Ottawa news release.