Edmonton property owners may get a slight reprieve on their tax bills next year after the majority of city council agreed Wednesday to a series of steps that would lower the tax levy.
Mayor Amarjeet Sohi presented an 11-part omnibus amendment that takes the tax increase to 6.1 per cent, down from the 8.1 per cent finance managers proposed at the beginning of the fall budget adjustment session.
“I think in the present situation lowering as much as possible without compromising our ability to deliver core municipal services that touch on people’s affordability and also not compromise our ability to focus on economic growth,” Sohi told news reporters.
Sohi’s amendment would draw on various financing sources to lower the tax increase and pay for programs that weren’t included in the budget adjustment.
The programs being funded include $1.4 million for turf maintenance to cut grass on city land four times a season, up from the current two and $861,000 for tree pruning.
Edmonton city councillors say they will try to lower the 8.1 per cent proposed tax increase for next year. They agree that the city needs a new approach in the way it balances the books and where it gets its revenue.
There’s $3.1 million to continue the City Centre Optimization project, which helps business improvement areas clean up graffiti and garbage, and maintain sidewalks.
The amendment also takes care of Edmonton Public Transit’s $13 million deficit, using funds from the LRT reserve.
The city would use $13.2 million from new franchise fees from the Epcor utility to reduce the tax levy and $8 million from Epcor dividends to the city.
Sohi suggested using $15 million from a fund usually used for capital projects.
Tim Cartmell, Ward pihêsiwin city councillor, opposed using this funding source. Instead, he had suggested pausing some of the city’s neighbourhood renewal program.
“I think that there’s considerably more money to be found within neighbourhood renewal,” Cartmell said. “This funding source is pay-as-you-go, which is different capital projects. Which ones? Don’t know. Can they manage it? Sure. Will they manage it in the way that we want? Don’t know.”
Sohi wants to direct $462,000 to start an Industrial Growth Hub to grow the non-residential tax base.
The amendment includes replenishing the financial stabilization reserve (FSR) over five years instead of three, which frees up some $20 million for the short term.
The FSR is a rainy day fund for emergency or unforeseen expenses and city policy dictates it have a $75 million minimum.
Based on September operating results, the reserve is projected to be $58.8 million by end of 2024.
Finance managers had suggested using one per cent of the tax levy to replenish the FSR; Sohi suggests using 0.5 per cent of the tax levy for five years.
Renewal fund
Sohi plans to introduce a subsequent motion to create a dedicated fund for renewal projects.
Ward Métis city coun. Ashley Salvador, said she’s been advocating for a renewal fund for years.
“As a councillor who represents a solely mature neighbourhood that were built out in the 50s and 60s, we’ve had questions related to whether rec centres are going to have to be closed, whether we can afford to maintain all these beloved facilities that people have come to love,” she said. “So having a dedicated renewal fund will ensure that we can do that.”
Council also approved Anne Stevenson’s motion to increase Explore Edmonton’s operating budget by $4.7 million for 2025 on a one-time basis, pending an updated work plan that includes an approach to support local tourism and the night-time economy.
Ward Ipiihkoohkanipiaohtsi councillor Jennifer Rice had put forward 12 motions to try to reduce the tax levy, none of which were supported by the rest of council.
Councillors and mayor usually discuss potential amendments before presenting them publicly in council chambers.
Several councillors said they hadn’t seen Rice’s ideas ahead of time.
Council meets again Thursday where the mayor will propose subsequent motions before council votes on the 2025-26 operating and capital budgets.