Edmonton city council digs into 2024 property tax increase before budget debate

City council dug into the details of proposed budget changes on Tuesday, with a bigger property tax increase on the table for 2024.

The plan, which could change during council debate later this month, would increase the property tax rate a little more than seven per cent next year. That's up from the hike of about five per cent council previously approved.

City officials say the higher increase would see Edmonton homeowners pay about $750 in property taxes for every $100,000 of their home's assessed value in 2024. In comparison, homeowners paid $701 in taxes for every $100,000 of assessed value this year.

The way individual tax bills could change depends on the home, and whether its value goes up or down in 2024.

City chief financial officer Stacey Padbury and other staff outlined Edmonton's financial situation Tuesday, saying rapid population growth and inflation have strained their ability to keep up services.

"When we budget, we often ask business areas to manage inflation with no increase in funding," Padbury said.

"If we do this absorption too often, for too long, it can result in an erosion of civic services."

She said the city is looking at $26 million in "unfunded pressures" and meeting all those financial demands would put next year's property tax increase closer to 8.5 per cent.

As it stands, additional funding for the Edmonton Police Service accounts for nearly a quarter of the total proposed 2024 tax increase.

Council approved more money for EPS this year through a new funding formula, and there are also mandated police salary raises because of an arbitrated settlement.

Mayor Amarjeet Sohi said that shouldn't be a surprise to council as they crunch the budget numbers.

"I hope that council members will recognize that their own decisions are adding to the pressures on tax levies," he said.

"These are right investments, which I supported, and I stand by those investments. I hope other council members will stand by those investments as well."

Public transit on council's mind

After the proposed 2024 budget adjustments were released last month, Epcor announced an $8 million increase to the annual dividend it pays the city.

Padbury said that's additional revenue they hadn't contemplated, so council can decide what to do with the money. Putting all of it toward reducing the tax levy would take the increase down to about 6.7 per cent.

Council begins its budget adjustment debate on Nov. 21. Several more days have been set aside to continue the discussion if needed, as council members vote on changes.

Sohi said he'll be bringing forward ideas on trimming the budget but also enhancing services like public transit and snow and ice control.

Ward pihêsiwin Coun. Tim Cartmell said he's hoping to reduce the tax levy.

"There's a few other things that I think we could return that increase back to the number we talked about last year, at the very least."

Ward papastew Coun. Michael Janz said he's concerned about how transit funding is falling behind, and he wants to see more investment.

"Public transit is front of mind for many Edmotonians, and if we can improve that service, that helps people who are experiencing a cost of living crunch."