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Discussion of Edmonton’s budget got underway at city hall Tuesday with a potential 7.09 per cent tax increase for 2024.

It was the first of five days in the next two weeks council set aside to debate the city’s financial plans for next year, expected to wrap on Nov. 29. Council set a four-year budget last December with around five per cent tax increases each year.

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But city administrators are presenting a budget 2.13 per cent higher for 2024, largely due to higher costs for police funding and salary settlements, and utilities. City council will ultimately land on a tax rate after deciding which items to cut or add to the city’s operating and capital budgets.

Tuesday’s meeting began with a presentation by city administrators on the draft budget followed by a lengthy private discussion. Councillors asked questions of boards and commissions after the lunch break, including Explore Edmonton, Fort Edmonton Park, Edmonton Police Service and Edmonton Police Commission, End Poverty Edmonton, and GEF Seniors Housing. The meeting was briefly interrupted by a fire alarm.

Mayor Amarjeet Sohi remarked during the meeting, “This is my 11th municipal budget, and this is the most difficult.”

Speaking to reporters before lunch, Sohi said his primary goal for the budget is protecting and enhancing public services, investing in public safety and well-being, and investing in public transit while keeping taxes affordable.

“I hear from Edmontonians that they are struggling with their day-to-day expenses, they are making tough choices and we will have to make tough choices. At the same time, I also know a lot of low-income and middle-income Edmontonians rely on public services and we need to make sure those are protected, and we have also heard public safety concerns,” he said.

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The mayor pointed out that a significant portion of the additional tax increase, 1.6 per cent, is tied to “improving public safety and wellness.” More specifically, a 1.63 per cent increase is, in fact, directly tied to police salary settlements and the revised police funding formula council members approved earlier this year, according to the city’s budget documents.

The mayor, asked if he’s concerned higher taxes will cause affordability issues, acknowledged it would add pressure but said he worries too about Edmontonians who rely on public services and need affordable transportation.

“I think if you can improve community affordability at the same time looking at individual affordability, that is the balance that we’re trying to create in this budget.”

Sohi signaled he wants more funding for Edmonton Transit Service (ETS) to fill gaps created when routes were adjusted in the spring of 2021.

One added request from End Poverty Edmonton discussed Tuesday is $180,000 for city staff to create a quality affordable childcare plan and implement a strategy. Executive director Erick Ambtman said this would pay for city workers to develop a plan that could create tens of thousands of childcare spaces and advocate to the province to bring them in.

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More broadly, Ambtman said he’s frustrated with conversations about the city’s budget focused solely on tax increases.

“If we want a great Edmonton, it costs money … I wish we were having a dialogue about what city we want to live in, and then we can talk about how much it’s going to cost,” Ambtman told reporters during a break.

Meanwhile, the Edmonton Chamber of Commerce and developer lobbyist groups including UDI — Edmonton Metro, BOMA Edmonton and NAIOP Edmonton, expressed concerns about the new proposed tax increase in a Monday news release.

“Our message to the city council is all about balance.  We’re pushing for smart investments and careful spending, aiming to boost Edmonton’s prosperity without burdening people with high taxes,” chamber CEO Doug Griffiths stated.

The group urged council to leverage Epcor’s $8 million higher dividend payout to reduce property taxes, review spending on agencies, boards, and commissions, be transparent about labour cost increases, refine priorities, and review or even cancel capital projects.

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@laurby

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