Edmonton city council wrapped up fall budget adjustments on Thursday, approving a number of changes to the 2023-2026 budget that will result in a 6.1% property tax increase in 2025 and a 6.8% one in 2026. Edmonton Mayor Amarjeet Sohi said the approval of the 2025 budget adjustments “represents a significant step forward in building a more inclusive and sustainable Edmonton.” “These decisions reflect our shared priorities of protecting core services, investing in critical infrastructure and ensuring fiscal responsibility,” said Sohi in a Thursday press release.“I am proud of the collaborative efforts that shaped this budget, reducing the overall tax levy increase by 2%, and I remain committed to working alongside Council, City staff and our community partners to deliver on our vision for a city that works for everyone.”The City of Edmonton said the approved budget adjustments include revenue increases and spending reductions as part of ongoing efforts to tackle budget issues. Since last fall, it has been making adjustments to the budget to respond to challenges such as inflationary pressures, rapid population growth and changing service needs, making service delivery more expensive than what was forecasted when the four-year budget was developed and approved in 2022. By approving property tax increases, it said it will help to bring its operating revenues in line with the actual costs to deliver services now.To limit the required property tax increases, it said Edmonton city council approved adjustments such as accepting administration’s recommended $8.5 million in ongoing savings, including many small changes to obtain savings in contracts, materials and equipment. Also, it pointed out it approved service changes such as slowing down the Heritage Program.The City of Edmonton will be using the $8 million increase in the EPCOR dividend and the $9.7 million increase in franchise fee revenue to lower the tax levy. Additionally, it will be addressing the projected transit revenue shortfall for the rest of the budget cycle using the LRT Reserve to offset the projected transit revenue shortfall for 2025 and 2026.To fund capital projects, it will be reducing the annual transfer from the operating budget by $15 million. It will develop a longer-term plan to restore these funds, which will be presented to Edmonton city council next year. Without adding to property tax requirements, the City of Edmonton said city council approved several service increases such as ongoing funding for Centre City Optimization to continue work to support cleanliness, safety, and vibrancy downtown. It added it has provided ongoing funding to provide Capital City Cleanup for Business Improvement Areas outside of downtown. It will be advancing the Industrial Action Plan to support more industrial development within Edmonton. While property taxes will be going up, it will be increasing funding for turf and horticulture maintenance to help ensure well-maintained accessible green infrastructure and a healthy urban forest. “Today’s budget decisions are an example of how Council is taking the lead on navigating the City through a challenging time with inflationary pressures, a rapidly growing population and changing service needs,” said City of Edmonton City Manager Eddie Robar. “The decisions that City Council made will allow us to maintain the roads, bridges, pathways and transit that move people; deliver the emergency services and social supports people count on; and activate attractions, recreation centres, sports fields and parks that make Edmonton a great place to call home.”City of Edmonton Chief Financial Officer and Deputy City Manager of Financial and Corporate Services Stacey Padbury said the fall budget adjustments have “allowed us to make some progress in tackling the City’s budget challenges.” “These challenges are complex, and it will take time and tough choices to manage them,” said Padbury.“We’ll continue to be open and transparent about our finances, the challenges we face and what we’re doing to manage them to ensure our continued financial stability.”The City of Edmonton said city council approved several capital adjustments, leading to a $234 million addition to the capital budget. The adjustments include a $105 million in tax-supported debt for the Yellowhead Trail Freeway Conversion Program, $87 million in new profiles from the Neighbourhood Renewal Program, and $41 million in increased provincial funding for Terwillegar Drive Expressway upgrades. It said it will continue to deliver on more than 200 projects in the 2023-2026 capital budget that had been approved in 2022. This includes LRT expansion projects, the Lewis Farms Recreation Centre, and the High Level Bridge and William Hawrelak Park rehabilitation projects.Depending on how people’s property assessed value compares to the market, the City of Edmonton said the annual tax increase will affect every property owner differently. It said an average Edmonton household would pay about $813 in property taxes for every $100,000 of their assessed home value in 2025. This is an increase of $47 more than in 2024. Property owners will learn about their assessment in January and will receive their tax notices in May. The fall supplemental operating and capital budget adjustments are part of Edmonton city council’s multi-year budgeting approach. Adjustments are scheduled each year so the City of Edmonton can respond to significant changes that have happened since the four-year budget was set. Moving forward, the City of Edmonton said the spring operating budget adjustment will be focused on finalizing the tax levy increase approved in the fall unless there are unforeseen circumstances. It confirmed the spring operating budget adjustments will happen in April, and the next capital budget adjustments will happen in June. Edmonton city council completed spring operating budget adjustment discussions in April, approving a number of changes to the 2023-2026 budget to arrive at an 8.9% property tax increase for 2024..Edmonton city council's 2024 spring budget adjustments includes an 8.9% property tax increase.These adjustments allow the City of Edmonton to respond to growing financial pressures so it can continue to deliver the 70 services Edmontonians rely on. “The City is dealing with many of the same financial challenges as Edmontonians, especially when it comes to the cumulative impacts of inflation,” said Padbury.
