The City of Edmonton proposes a 1.8 percent property tax increase by 2022, projecting a COVID-19 deficit of $ 96.7 million.

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The City of Edmonton recommends an increase in property tax collection in 2022 of 1.8 percent, with 0.7 percent going to the Edmonton Police Service, as part of the proposed $ 3.1 billion operating budget.

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In the city’s fall budget adjustments released Monday afternoon, CFO Stacey Padbury outlined the city’s plan to keep the tax increase at 1.8 percent, which was approved in the spring. Initial tax collection for 2022 was slated for 2.6 percent, but the city has been working to minimize the financial burden on taxpayers as a result of the COVID-19 pandemic. If approved by the council, this will be the highest tax increase since 2019.

The previous council approved a property tax freeze for 2021, but Padbury said this year’s increase is necessary so the city can continue to provide basic services to Edmonton residents. The increase is broken down by a 0.7% increase in surveillance, 0.7% in the basic budget of civic departments, 0.3% in the alley renovation program and 0.1% in the construction of LRT Valley Line West.

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“The city must approach the current budget in a way that takes into account the financial circumstances of taxpayers, maintains adequate funding for basic services, and provides the long-term financial sustainability of the city, all with the economic environment in mind. defiant, “Padbury said in the report. “Given the more pronounced inflationary pressures, the administration believes that the 1.8 percent tax increase recommended in this budget for 2022 is fiscally prudent and supports the current economic climate.”

The city generally hosts media availability when budget documents are released, but Padbury was unavailable to answer questions Monday and limited information was sent to Postmedia via email.

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The Edmonton Police Service is slated to receive $ 395.7 million next year, an increase of $ 11.9 million from 2021. This is an $ 11 million reduction from the amount proposed after the previous council decided to reduce the police budget continuously and reallocate the funds. to social service groups, also with a focus on community safety.

What the city will do with that $ 11 million has yet to be determined. The Council is currently in the process of redirecting the final portion of the $ 5.5 million that was withdrawn from the 2021 police budget. With $ 1.4 million remaining, the city recommends that most of the money be provided to the Advisory Committee Against Racism to obtain additional grant funds. Future investments and opportunities with the $ 11 million could include providing Indian housing supports, improving 24/7 outreach and crisis supports, as well as transforming the city’s approaches to law enforcement and the camps.

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COVID-19 income deficit

The city also projects an operating budget deficit of $ 96.7 million in 2022 as a result of the COVID-19 pandemic, which it hopes to offset in one-time adjustments without an impact on the tax.

The estimated impact is less than the deficit of $ 152.9 million in 2021, but is still expected largely as a result of the reduction in the number of passengers in transit and the use of the recreation center. The projected revenue reduction in transit alone is $ 53.7 million. If the deficit were filled through the tax levy, a 5.7 percent increase would be required, but Padbury said the city can offset these additional expenses through one-time adjustments.

“The administration will manage the effect of the COVID-19 pandemic on the 2022 operating budget through a one-time budget adjustment that matches the anticipated deficit with a compensatory financing strategy and has no impact on the 2022 tax,” he said Padbury in the report. . “The long-term effects of the pandemic on the needs and preferences of citizens, including the way they use city services, are unclear. The budget impacts of COVID-19 will be treated as one-time changes until there is greater certainty of the permanent impact on city services, or it is clear that single funding strategies are no longer practical or feasible. “

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Additional COVID-19 costs, including work-from-home arrangements and improved cleaning, are expected to cost $ 16 million. The city plans to use several strategies to overcome the deficit without affecting city services, including the use of a special dividend of $ 10.8 million in the Ed Tel Endowment Fund. Expense management strategies to reduce spending on contractors, consulting, training and hosting will also be implemented next year for a projected savings of $ 4.3 million.

Capital projects

For the capital budget, city officials recommend a $ 218.8 million increase for tax-backed operations to fund many new projects to be built during the 2023-26 budget cycle, including rehabilitation projects at downtown Edmonton conventions and exhibitions. The city also recommends that the 50 Street CPR grade separation project be fully funded with an additional investment of $ 42.4 million. The Council will also be required to make a decision on the proposed Coronation Park Recreation Center project, which will require additional funding to move forward.

The Council will have its first opportunity to discuss the proposed budget adjustments next Monday. A public hearing will be held on November 29 to give Edmontons a chance to comment. Budget documents can be found in the city ​​website.

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