April 11, 2024
The City released its spring operating budget adjustment report today, recommending an 8.7 per cent tax increase for 2024 in order to respond to several increasing cost pressures and continue to provide the services outlined in the 2023-2026 budget. This is an additional 2.1 per cent increase than what was approved in November 2023.
“Since Council last discussed the 2024 budget last fall, we have encountered higher WCB premiums and we have a better understanding of longer term labour costs,” said Stacey Padbury, the City’s Chief Financial Officer and Deputy City Manager of Financial and Corporate Services. “In order to keep our financial status strong and maintain services we need to fund these pressures through increased property taxes."
The recommended budget adjustments will allow the City to maintain funding for its 70 services, including the attractions, emergency services, parks, roads, trails, bridges, recreation centres, social supports and transit that Edmontonians use every day. It will also allow the City to deliver on the service increases that City Council approved for 2024, including:
- Operating the new Metro Line LRT to the new NAIT Station
- Adding more bus service hours to improve public transit access and align to service standards
- Expanding library service at Heritage Valley
- Advancing the work on Edmonton's Anti-Racism Strategy and Truth and Reconciliation
The City’s at a financial crossroads
Just like all Edmontonians, the City is still recovering from the lasting economic effects of the pandemic. For the City and other municipalities, this means increasing demands for service as well as higher costs coming from a prolonged period of inflation.
“We know households and businesses are experiencing higher costs than they were just a few years ago, including for utilities, fuel, insurance and employee salaries. We’re feeling those same pressures at the City,” said Padbury. “During the pandemic, the City kept tax increases below inflation to support Edmontonians, but now we need to catch up with rising costs. We’ve reached a point where we need to make choices between increasing taxes or reducing service levels to ensure that the City remains in its current fiscally sustainable position.”
The spring supplemental operating budget adjustment is the last step in finalizing the annual tax increase. The report is scheduled for discussion at the City Council meeting on April 23 and 24. The City will bring forward bylaws on April 30 to set the tax rates based on the approved tax increase. Tax notices will be mailed to all property owners on May 24, with property taxes due on June 30.
The recommended tax increase would mean that Edmonton households would pay about $65 more for every $100,000 of their assessed home value in 2024. This means that the average household in Edmonton would pay about $8.96 per day. The property tax increase will affect individual property owners differently, depending how their property’s assessed value compares to the market.
