After lengthy debate at Edmonton City Hall on Tuesday over amendments to the operating budget, city council voted to approve changes that will result in an 8.9 per cent property tax hike in 2024.
The city announced the approved budget adjustments just before 11:30 p.m. on Tuesday.
Discussions earlier in the day originally saw city councillors debate amendments that would have resulted in an 8.7 per cent property tax increase.
“The city is dealing with many of the same financial challenges as Edmontonians, especially when it comes to the cumulative impacts of inflation,” said Stacey Padbury, the city’s chief financial officer and deputy city manager of corporate and financial services.
“Today’s adjustment allows the city to respond to the high costs we’re facing now, as well as to lower revenues and a rapidly growing population, so that we can continue to deliver the services that we heard matter to Edmontonians.”
The city said the tax increase will help the city “respond to several budget pressures that have increased significantly” since the city constructed the current budget in 2022.
Among those increasing costs the city cited were higher-than-expected energy costs, labour costs and Workers’ Compensation Board insurance premiums. At the same time, the city said is it receiving lower-than-expected revenue for gas franchise fees from the utility provider ATCO, from business licences and from transit fares.
Those increased costs and decreasing revenues also come at a time the city said Edmonton is experiencing higher-than-expected population growth.
“We can’t continue to absorb the financial impacts we’re facing this year and beyond without adjusting taxes or service levels,” Padbury said. “And it will likely require some tough choices on both fronts in the years ahead to ensure our long-term financial sustainability.”
Tax notices will be mailed to all property owners on May 23, with property taxes due on June 30.
More to come…