Property taxes in Edmonton are expected to increase by 8.7% this year due to the city’s financial troubles.
Originally increasing property taxes by 6.6% in November, city administrators then adjusted the tax raise to 8.7% for 2024 due to Edmonton’s limited money.
City council announced the new numbers on Thursday, making this the highest tax increase in over a decade for Edmontonians.
The City of Edmonton also stated taxes will likely increase by 1.7%, which is higher than initially anticipated following the next two years.
Half the money from the 8.7% raise will be used to sustain city services, according to Stacey Padbury, the city’s Chief Financial Officer and Deputy City Manager.
“We don’t take this increase recommendation lightly. However, to maintain the financial stability we face, these are the decisions that need to be made,” said Padbury.
“The city is dealing with the same financial challenges Edmontonians are dealing with as we recover from a high inflation period, which is resulting in an increased cost to deliver the same level of services,” she added.
Edmonton will be accessing funds from its financial stabilization reserve to make up for its $50 million deficit, leaving the account balance $60 million short of its minimum requirement.
The City of Edmonton admits they’re “out of money”
After almost reaching its debt limit, the City of Edmonton now struggles to afford funding for basic services such as transit stations, LRT cars, and homeless shelters.
“The city’s tapped, the city’s out of money,” said Councillor Tim Cartmell last month.
After the chaotic city workers’ strike created multiple financial complications and tax increases for Edmontontians, City Manager Andre Corbould announced his resignation, making him the seventh top bureaucrat to leave in a year.
Alberta Premier Danielle Smith took notice of Edmonton’s disarray, saying, “That is a sign that has us concerned about stability.”
Edmonton struggles to fund homeless shelters and transit services
After the city wasted $82 million on failed electric ETS vehicles, they now require $257 million to replace over 300 buses and $240 million for 37 LRT cars.
Due to the financial situation, city councillors began “picking and choosing” where the limited money could go, and decided not to refund Edmonton homeless services such as Boyle Street and the Bissel Centre.
“When budgets increase, taxes tend to follow. I don’t want to see that happen, which means we’re going to have to start picking and choosing what we’re going to do,” Councillor Cartmell said.
