Edmonton mayoral candidates submit property tax plans as the city faces a projected $ 75 million deficit in 2022

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Facing a projected $ 75 million shortfall in 2022, Edmonton mayoral candidates are laying out their plans to avoid a large property tax hike by finalizing the budget this fall.

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Setting the 2022 tax rate will be one of the first issues for Edmonton’s next city council during the fall supplemental budget adjustment. The current budget has an approved tax increase of 1.8 percent, but in its most recent financial update to city council, the city projects a deficit of $ 75 million next year as a result of the COVID-19 pandemic that should be made up.

If it were recovered throughout the tax lien, it would amount to a further increase of 4.3 percent. The city’s finance team is still looking for options to address the deficit through funding strategies other than the tax levy that will be presented to the new council in November.

The projected budget deficit includes a projected $ 63 million reduction in traffic, recreation and automated compliance revenue, as well as $ 12 million in increased costs to aid economic recovery.

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At a virtual mayoral candidates forum hosted by the Edmonton Chamber of Commerce Thursday morning, five top contenders in the race shared why they would fight in the council budget conversation that will decide how much of the revenue shortfall should. offset through property taxes. .

All candidates promise to keep taxes as low as possible as Edmontons continue to fight the economic impacts of the COVID-19 pandemic, but they vary in what that means.

Amarjeet Sohi said that as mayor he would call for a comprehensive review of the city’s finances and would work to ensure that any tax increase is less than the rate of inflation, but that does not necessarily mean a freeze. Sohi said there is no way the city can continue to provide essential services to Edmonton residents and sustain years of 0 percent tax increases.

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“If we can get to 0 percent this year, it would be great, but it can’t be at the expense of the public services that people depend on during our pandemic recovery,” Sohi said in a statement to Postmedia. “Committing to raising well below the rate of inflation is a realistic way to keep tax rates low without compromising those services.”

Michael Oshry, who has frequently focused on Sohi’s fiscal policy during the campaign, said that a tax increase below the inflation rate could still be too high, which currently stands at 4.4 percent in Edmonton. The city’s operating budget has grown about $ 400 million since Oshry left the council in 2017, he said, calling for a tax freeze in 2022 followed by a push for a decrease from one percent to two percent in 2023.

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To accomplish this, Oshry said he would call for a complete overhaul of the city’s programs and services, as well as a move away from development, such as the Blatchford project, that will impact operating costs.

“The city has not grown that much, we are just spending money on everything to try to appease everyone and we will have to make some smart and tough decisions down the road,” Oshry said Thursday. “We need to step up and help everyone in our city succeed.”

Kim Krushell said she is concerned that businesses will choose to go elsewhere due to high taxes in the city and will fight for a tax freeze next year as a result if elected to help businesses stay on their feet. If elected, she would also request a review of the residential and non-residential tax rate.

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“I think it is really important for us to understand how much these taxes are going to create a situation where we are going to have a lot of businesses closed because COVID-19 exacerbates everything,” he said. “I think it’s really important that our next mayor and council fix our fiscal situation and that we focus on helping businesses in every way possible.”

For Mike Nickel, he said his plan is to cut tax collection 3.3 percent next year by lowering city clerical staffing levels and cutting outside consulting costs. If approved, he projects that this would save the city $ 109 million a year, but would also affect 257 positions in the city.

“We have to focus on the fundamental results of bringing things into the city,” he said. “It’s about reducing the tax dollar.”

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Cheryll Watson switched the subject of tax rates to the other candidates, noting that she was the only one in Thursday’s forum who did not participate in a council that approved increases in the past. He noted that he does not want tax collection to continue to rise, but did not provide a specific figure that he would fight for in next year’s budget.

“I am the only one sitting here in this scenario who has not increased her taxes,” she said. “It’s time for us to go back to our mandate, the things you expect us to do as your city government, re-align ourselves, shape our city services into a more affordable offering to one that truly delivers to you, our businesses. . “

The city also currently projects a 2021 budget surplus of $ 18.7 million that could also be used to offset some of the revenue reductions projected for 2022. The council was able to freeze property taxes in 2021 by finding savings worth $ 142 million to offset the additional costs of the pandemic.

Election day is October 18.

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Reference-edmontonjournal.com

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