'Gruelling' budget process ends with tax increase of 4.96% in 2023
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City council has approved Edmonton's 2023-2026 budgets, which will result in property tax increases of just under 5% in each of the next four years.
The $7.9-billion capital budget passed 9-4, with councillors Tim Cartmell, Sarah Hamilton, Karen Principe, and Jennifer Rice opposed. The operating budget, with expenditures of nearly $3.3 billion in 2023, $3.3 billion in 2024, $3.5 billion in 2025, and $3.6 billion in 2026, passed 8-5, with the same councillors opposed as well as Coun. Andrew Knack.
The resulting tax increases have been set at 4.96% in 2023, 4.96% in 2024, 4.95% in 2025, and 4.39% in 2026. Council will have the opportunity to make budget adjustments every fall, which could alter those numbers slightly.
"My focus during this budget has been affordability, not austerity," Mayor Amarjeet Sohi said in his closing remarks. "All of us have a responsibility to own it. I will support this budget, because I am proud of the collaboration we fostered."
Despite that collaboration, several councillors commented on how difficult the past few weeks have been. "This budget process has been absolutely gruelling and exhausting," said Coun. Michael Janz. "A rollercoaster like no other."
Coun. Jennifer Rice indicated she could not support a tax increase above 4%. "The outcome and the process fell short of what I believe Edmontonians told us they expected of council," she said.
Coun. Keren Tang also used her closing remarks to address the process, suggesting that council was "drowning in information" and might need a different approach. She wondered aloud if there might be a more iterative and responsive budget process used in the future.
City council approved about $223 million in adjustments to the capital budget, including the approval of $100 million for the Edmonton Bike Plan, a decision that will likely remain controversial for years to come. Other big-ticket items included $53 million for deep energy retrofits of City of Edmonton facilities, $35 million for the demolition of the Coliseum, and $34.5 million for a district energy network strategy.
On the operating budget, council asked for a "city-wide, comprehensive corporate review of all programs and services" with a goal of reducing expenses by $60 million over the four-year budget cycle. Additionally, council asked administration to identify "an additional minimum $240 million that city council can transition to its directed priority areas of housing, climate change, public transit, and core services."
Other operating approvals included the $5-million Edmonton Edge Fund, nearly $8 million per year for on-demand transit, nearly $11 million more over the four-year budget cycle for enhanced snow and ice control, a one-time increase of $5 million for Explore Edmonton, $2 million to partially fund the climate adaptation strategy, and $1.5 million for a municipal drug response.
The closest votes were 7-6 in favour of reducing capital funding for the Edmonton Valley Zoo by $24.5 million, and 7-6 in favour of boosting operating funding for animal welfare by about $3.3 million. Motions to increase funding for transit cleaning, decrease funding for a program focused on diversity and inclusion at the City of Edmonton, and increase operating funding for the Fort Edmonton Park expansion were all defeated 6-7.
Council also considered more than two dozen subsequent motions for things arising from the deliberations.
"Will more good be done for the people of Edmonton in this budget than there is to disagree with?" Coun. Aaron Paquette said in his closing remarks. "And the answer is obviously yes, there's no debating that."
