Edmonton city council looking for ways to lower tax increase as budget deliberations heat up

Budget debate is in full swing at Edmonton city hall as the final set of deliberations began Monday.

City councillors discussed how to lower the proposed tax increase of 8.1 per cent for 2025 but also the bigger picture of the city's finances.

The city's finance managers say several areas, including public transit, materials, contracts, fuel and personnel, cost more than projected because of inflationary pressures and rapid population growth.

"We can't keep going back to property taxes. That is not a model that provides services, safety, security for everyone," Coun. Michael Janz told media. 

"It's an outdated model. It should be a part of it, but it can't be the only part and we need real help from the province and the feds." 

Mayor Amarjeet Sohi referenced a proposed plan aiming to lower the property tax increase to six per cent, that he posted on social media last week. Among the plan's priorities is a focus on affordability and core services. 

"We put more money into public safety and well-being, put more money into public transit. We put more money into snow and ice control. We were opening the libraries on Sundays that were not open before," he said. 

"So we have invested back in those core services, and I want to focus on protecting those at the same time reducing expenditures."

Sohi said an overhaul of the budget is needed as council only has a short window to debate. 

"It is not a sufficient amount of time. I think we need to do is go back to what we what we used to do in 2008-2009 when we actually did a line by line analysis of every department leading up to the final budget."

Watch | What do councillors think of the 8.1 per cent increase?

What Edmonton city councillors think of the proposed 8.1 per cent tax increase

2 days ago

Duration 2:29

Edmonton city councillors say they will try to lower the 8.1 per cent proposed tax increase for next year. They agree that the city needs a new approach in the way it balances the books and where it gets its revenue.

Coun. Tim Cartmell said every dollar counts for the average Edmontonian. 

"Even if 8.1 goes to 6.6 or 5.6 [per cent] that is still roughly 30 per cent in three years," said Cartmell.

The city says it is experiencing funding shortfalls in multiple key areas. 

Public transit is facing a $13 million deficit this year, partly because fuel costs are nearly $6 million more than budgeted.  

Major infrastructure projects are also facing shortfalls, for example, the Yellowhead Trail freeway conversion project is $105 million short. 

Janz said part of the issue with funding services is the size of the city and lack of density.

"When we look at why is snow removal so expensive in Edmonton, it's because we have that 11,000 kilometres of road." 

He added that there is a strong need for change. 

"If we're serious about actually reducing property tax in the long term, we need to change the way we build. We need a lot more infill. We need a lot less sprawl." 

Budget deliberations will continue until Thursday.