A pilot project that would give Ottawa's university students a price break on transit is expected to be put to a campus referendum in a couple of weeks.

A positive vote would clear the way for a plan that was part of Ottawa city council's new budget which was approved Thursday. Council voted in favour of the universal pass (U-Pass) for University of Ottawa and Carleton students, despite warnings it would cost the city $3 million per semester.

"After 10 years of lobbying, it is great that the city of Ottawa finally supported students and voted in favour of offering an affordable U-Pass," said Shelley Melanson, chair of the Canadian Federation of Students-Ontario. "Now it is up to students to decide whether or not they wish to participate in the program."

Carleton University Students’ Association president Erik Halliwell is quoted in the student newspaper as saying he is positive the referendum will pass.

Once that's done, the pass will be offered next fall at a cost of $145 per semester, down from the $242 normally charged by OC Transpo.

Transit fees, property taxes to increase

Transit users overall are winners under the budget, despite approval for fare increases, according to the councillor overseeing of the system.

In passing the budget by a vote of 22-2, councillors approved a 7.5-per-cent hike in transit fares. On the other side of the ledger, the city will restore evening and weekend service on dozens of OC Transpo routes.

"Council found a means to keep those transit services in place and still come in with a reasonable tax increase, so I think this is, quite frankly, a victory for transit users," said Councillor Alex Cullen, chair of the transit committee.

OC Transpo is expected to increase fares by 20 to 40 cents, which will would raise prices to between $3 and $5 for adults.

City councillors have called this a reasonable, stay-the-course budget.

They restored cuts to the city's forestry program as well as half a million dollars in funding to Crime Prevention Ottawa.

Ottawa Mayor Larry O'Brien told reporters he was "delighted with the outcome" of all the wrangling.

"I always want taxes to be lower, that's part of my nature, but the process has improved," O'Brien said, referring to a 3.77 per cent tax hike for residential properties, which will add about $140 to the average homeowner's tax bill this year.

In addition, council approved an increase of nearly 10 per cent in the water and sewer rate.

The city will put off $20 million worth of capital projects and $2 million worth of repairs to Lansdowne Park.

More savings will come as the city moves to cheaper green bins for townhome developments.