Edmonton's tax increase could dip to 6.1% as city council endorses mayor's proposed changes
CBC
Edmonton property owners may get a slight reprieve on their tax bills next year after the majority of city council agreed Wednesday to a series of steps that would lower the tax levy.
Mayor Amarjeet Sohi presented an 11-part omnibus amendment that takes the tax increase to 6.1 per cent, down from the 8.1 per cent finance managers proposed at the beginning of the fall budget adjustment session.
"I think in the present situation lowering as much as possible without compromising our ability to deliver core municipal services that touch on people's affordability and also not compromise our ability to focus on economic growth," Sohi told news reporters.
Sohi's amendment would draw on various financing sources to lower the tax increase and pay for programs that weren't included in the budget adjustment.
The programs being funded include $1.4 million for turf maintenance to cut grass on city land four times a season, up from the current two and $861,000 for tree pruning.
There's $3.1 million to continue the City Centre Optimization project, which helps business improvement areas clean up graffiti and garbage, and maintain sidewalks.
The amendment also takes care of Edmonton Transit Service's $13 million deficit, using funds from the LRT reserve.
The city would use $13.2 million from new franchise fees from the Epcor utility to reduce the tax levy and $8 million from Epcor dividends to the city.
Sohi suggested using $15 million from a fund usually used for capital projects.
Tim Cartmell, Ward pihêsiwin city councillor, opposed using this funding source. Instead, he had suggested pausing some of the city's neighbourhood renewal program.
"I think that there's considerably more money to be found within neighbourhood renewal," Cartmell said. "This funding source is pay-as-you-go, which is different capital projects. Which ones? Don't know. Can they manage it? Sure. Will they manage it in the way that we want? Don't know."
Sohi wants to direct $462,000 to start an Industrial Growth Hub to grow the non-residential tax base.
The amendment includes replenishing the financial stabilization reserve (FSR) over five years instead of three, which frees up some $20 million for the short term.
The FSR is a rainy day fund for emergency or unforeseen expenses and city policy dictates it have a $75 million minimum.
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