7% tax hike on table as Edmonton city council begins 2024 budget debate

Property owners in Edmonton face a 7.09 per cent tax increase for 2024as the city says it's trying to manage inflation, agrowing populationand the maintenance and enhancement ofcore services.

Budget deliberations started Tuesday at city hall, where council will discuss the need for the hike, which is up from the nearly five per cent they approved last year.

Andre Corbould, the city manager, outlined the reasons for the adjustments, including inflation, utilities, an increase in police salaries and parks and roads services.

He said administration recognizes that it's a difficult request.

"We also know that when we ask for funds from Edmontonians, we need to be clear about how they're spent."

Part of the proposed increase would go toward filling a nearly $44-million funding gap for police, including $19.7 million in salary increases agreed on in an arbitrated settlement earlier this year.

Another $11.8 million is approved in the police funding formula alongside$2.9 million for the healthy streets community hub in Chinatown.

Police take up the biggest portion of the city's operating budget at 15.2 per cent, followed by transit at 12.5.

Council is scheduled to discuss and vote on the budget adjustments by Nov. 29.

If the change is approved, Edmonton homeowners will pay about $750 in property taxes for every $100,000 of their home's assessed value in 2024.

Homeowners paid $701 in taxes for every $100,000 of assessed value this year.

'Tough choices'

Mayor Amarjeet Sohi said it's important to invest in public safety and transit while trying to keep taxes as low as possible.

"I hear from Edmontonians that they're struggling, where their day-to-day expenses, they're making some tough choices and we will have to make some tough choices."

Before budget deliberations began, the Edmonton Chamber of Commerce sent a release to media, expressing worry that some local businesses wouldn't survive a seven per cent increase.

"It's daunting," Doug Griffiths, CEO of the Edmonton Chamber of Commerce, said of businesses trying to recover from the past couple of years.

"Now to see only the second year into this four-year budget cycle, that proposed 7.09 per cent increase on property taxes is coming is very disconcerting."

City managers are also requesting $13.8 million to pay for staff, peace officers and cleaning crewsto respond to encampments and increase access tobridge housing spaces plus twohygiene hubsfor unhoused people.

More funding asks

Some groups are asking for more money.

Erick Ambtman, executive director of End Poverty Edmonton, wants the city to invest $180,000 to train staff foran early learning and care plan.

He said he's frustrated that the conversation is focused on property taxes instead of improving life in Edmonton.

"I want totalk about what kind of city I want and I understand that it's going to cost money to have that city," Ambtman said.

"We have the audacity to say we're going to try to end poverty.I want to be a part of that, I want to be a part of that community."

Explore Edmonton is asking for $10.3 million to continue growing the economy and broadening the mandate to attract events and bids.

"We leverage the dollars that you put in," CEO Traci Bednard said.

"When you provide $1we've been able to generate another $6 just for the bid and the economic impact of those of course is far greater to the businesses that support tourism in our city."

Last year, council also agreed to find $60 million a year in savings or cuts to services and programs that don't affect core services like snow removal and transit.