This week, council will debate the fall operating and capital budget adjustments, a process that will determine the city's tax increase in 2025.
Administration has proposed an 8.1% tax increase in 2025 as the city faces an estimated $34 million deficit and a rising cost to deliver municipal services. The proposed budget will mostly result in static service levels, despite the tax rate increase.
Council tentatively approved a 7% increase earlier this year. Administration proposes an additional 1% each year for the next two years to replenish the financial stabilization reserve. The final 0.1% of the proposed increase would pay for higher-than-expected costs for the 2025 election.
Council could cut or add programs to the budget, which would change the tax increase. Administration recommends adding funding to the capital budget for neighbourhood reconstruction in Overlands, Homesteader, Hillview, and Glenwood, as well as to replace or rehabilitate the Wellington, Beverly, and Coliseum LRT bridges. Council could choose to add about $6 million to the budget to build a replacement Harbin Gate at 97 Street NW and 101A Avenue, where the original Chinatown in Edmonton began.
In the operating budget, there are several unfunded service packages that council has the option to add to the budget. Council may continue funding for the City Centre Optimization project, which provides enhanced cleaning services for downtown, and also extend the program to the other 12 business improvement areas, for a total cost of about $6.4 million. There is also a $10-million service package for enhanced turf mowing and weeding.
Tempers flared during a Nov. 13 meeting about the budget. Mayor Amarjeet Sohi said that, for previous budgets, he has worked with his colleagues outside of council chambers to reach consensus on multiple budget items that can be passed all at once using an omnibus motion. Sohi said he plans to do the same this year, but Coun. Tim Cartmell created a motion against this practice, and suggested factions of council have sometimes created the omnibus lists without his input. A tense exchange with multiple points of order followed. Cartmell's motion to stop a budget omnibus ultimately failed.
Sohi wrote an open letter to council outlining how he hopes to reduce the proposed tax levy increase by at least 2%. He recommends to temporarily cut the neighbourhood renewal budget by $15 million, fund enhanced downtown cleaning and introduce cleaning budgets for other business improvement areas, create an industrial growth hub to grow the non-residential tax base, and replenish the city's financial stabilization reserve, which is used for unbudgeted emergency expenses. Sohi also wants to increase community league funding by 25%, increase mowing and weeding service levels, and fund the projected shortfall in the Ride Transit Program.
City administration conducted a budget survey in the fall that suggests Edmontonians are more supportive of service level reductions than paying more property taxes. About half of respondents said they support a reduction in services to keep the tax increase as close to 7% as possible, while about 25% said they supported keeping the service levels the same and paying more.
Meetings stream live on YouTube on the Chamber channel and River Valley Room channel.