Edmontonians are facing the possibility of a 13 per cent tax hike next year if service cuts are not made. At a recent executive committee meeting, councillors were given a preview of the city’s financial outlook for 2025. A preliminary estimate projected a tax levy increase of 13 per cent without any adjustments. With some adjustments and deferring certain costs, the city is projecting an 8.8 per cent tax hike for next year. The city is facing $88 million in budget challenges, including inflationary pressures, a growing population, and changing service needs.
In response to the financial challenges, the city is committed to finding a balance between delivering essential services to Edmontonians while keeping property taxes and user fees manageable. Stacey Padbury, the chief financial officer and deputy city manager of financial and corporate services, stated that difficult choices will need to be made in order to address the ongoing budget challenges. This may involve increased property taxes and user fees, as well as potential reductions in service levels. Mayor Amarjeet Sohi expressed concerns about the proposed tax hike numbers, stating that they are too high for residents to absorb.
Earlier this year, council approved an 8.9 per cent tax hike for 2024, citing inflation and decreased revenues as reasons for the increase. Mayor Sohi emphasized the need to review all city services and departments to identify areas where reductions can be made in order to avoid continually raising taxes. While core services will not be affected by any potential budget adjustments, other non-essential services may see cuts. The city’s administration will present its fall budget adjustment recommendations in November, with council deliberating on any adjustments in December.
Inflationary pressures and growing population are driving up costs for the city, including fuel costs and other expenses. The city is facing a challenging financial situation that will require careful planning and decision-making to ensure financial stability in the coming years. Mayor Sohi stressed the importance of finding a balance between maintaining essential services and managing tax increases for residents. Council members will continue to assess the budget in the coming months and look for ways to address the budget challenges facing the city while meeting the needs of its residents.
Overall, the city of Edmonton is facing significant budget challenges and is exploring options to address them while maintaining its financial health. The possibility of a 13 per cent tax hike next year looms unless adjustments are made to address the $88 million in budget challenges. Mayor Sohi and city councillors are aware of the impact that tax increases can have on Edmontonians and are seeking ways to reduce the proposed hike. With careful planning and decision-making, the city hopes to find a balance that allows for the delivery of essential services without overburdening residents with excessive tax increases.
