Council brainstorms ways to reduce proposed tax increases

Councillors are looking for ways to save property owners money over the next three years, in the face of 4.9-per-cent tax increases and a tight budget.

On Monday, they got their first chance to ask questions about where the money goes.

• City proposes 4.9 per cent tax increase for next 3 years

City staff have already found $29.9 million in savings through efficiencies, of which $10.1 million can be spent on other things.

But councillors said those savings are not enough. Coun. Mike Nickel said more must be done to save people from "tax fatigue."

"We're raising taxes beyond people's ability to pay," Nickel said.

Councillors must find $13.7 million for every one per cent they want to cut from the tax increase. And they have a few ideas.

Review everything the city has to offer

Council plans to review every service and program the city offers, from green shacks to police, to see if there is room for savings.

Coun. Michael Oshry suggested it may be time to scale back on things that aren't as beneficial as they used to be.

"We keep adding programs and services every year after year, and we rarely look at taking some things out," he said.

He wouldn't say which programs he thinks should be eliminated, but said this review would help narrow it down.

"I don't think council has the knowledge to make those decisions," Oshry said. "Not really enough to say, 'This program we should cut.' "

The city hasn't taken on a "serious review" of its services since 1997, according to chief financial officer Todd Burge.

The review at that time was focused on finding $50 million in savings. Councillors and city staff said it was bad for moral, and resulted in some short-sighted decisions.

Mayor Don Iveson described it as "hacking toward the goal." He said part of the reason the city has to spend so much on neighbourhood renewal now is the cost cutting measures that were part of that review.

This time, he said, will be different. Iveson said there will be no set cost-cutting target for this review.

Oshry said Edmonton is a "vastly different city" than it was in 1997, making this a good time to clean house.

Councillors will consider the review later in November. If approved, it would take about two years and be focused on finding savings for the 2017 and 2018 operating budgets.

Slow down neighbourhood renewal

This year, 1.5 per cent of the tax increase is dedicated to neighbourhood renewal. Coun. Michael Walters raised the possibility to bringing that number down to one per cent.

The city has collected funds through a dedicated tax levy to improve neighbourhood paving and sidewalks since 2009, and that program is expected to finish in 2022.

If council reduced the funds, it could delay the completion date by four to six years, according to transportation manager Dorian Wandzura.

Walters suggested the city could make up the difference with $20 million announced by the provincial government for city infrastructure projects.

Iveson said he doesn't want to see neighbourhood renewal slowed down. In fact, he wants it finished even faster.

"I actually think we should be going the other direction," he said. "I think we should consider front loading neighbourhood renewal, get it done in this council's mandate."

Iveson suggested council could put off paying for future LRT operations, which accounts for 0.8 per cent of the tax increase, and put that money into the neighbourhood renewal fund instead.

Hiring freeze

As the budget stands now, Edmonton would hire 478 new full-time employees over the next three years to keep up with the city's growth.

Burge said many of the positions will be used to staff new facilities such as fire stations and recreation centres.

The city also must pay $29 million more in union wage increases to existing staff, which accounts for about 2.1 per cent of the tax increase.

Coun. Andrew Knack asked what would happen if council did not approve funds to hire new staff. Administration said they would provide an answer before council debates the budget at the end of the month.

Edmonton's chief economist, John Rose, said a hiring freeze would have an impact on the economy of the entire city.

He said the municipality is one of the largest employers in Edmonton, second only to the provincial government.

Councillors will debate all the possibilities over the next month and a half. The tax increase won't be finalized until the mill rate is set in the spring.