Edmonton unlikely to see new community revitalization levies in the near future
Edmonton city council said it is unlikely that it will use a community revitalization levy (CRL) to help fund LRT projects, and may not use them for other city projects in the future either.
In an executive committee meeting on March 1, Mayor Don Iveson concluded that future LRT lines will continue to be paid for out of the city’s regular budget instead.
"The incentives aren't there, and we can do this using general revenues," he said.
CRLs use projected future tax revenues to fund projects inside designated boundaries. The city takes on debt to finance the projects, and as they are completed, property values go up and new development is attracted to the area. The municipality can then pay back the debt with the subsequent increase in property tax revenues.
In Alberta, the provincial government also loans its share of the future increase in revenues, collected through the education property tax, towards the city's fund.
"That is really the big cherry on top, and the reason municipalities tend to go down a CRL route in Alberta," Cate Watt, branch manager for the city's assessment and taxation department, told Taproot’s Speaking Municipally. "The province forgoes its education tax for that uplift, and the municipality is allowed to garner that ... and put it into the CRL pool as well."
The City of Edmonton currently has three active CRLs, one of which helped fund the construction of Rogers Place. On Monday, executive committee met to discuss the possibility of creating a new CRL to fund future LRT lines, which could contribute to the city's transit-oriented development goals.