2023 FALL BUDGET ADJUSTMENT
Findings savings, funding priorities: A Closer Look at Our Fall Budget Adjustment
Last week City Council approved an adjustment to our 2024 budget which results in a property tax levy increase of 6.6% for the coming year. While this is higher than I would have liked to see, I feel Council's decision balanced the need to respond to our challenging current conditions without shortchanging our future.
A quick note to start: unlike our four year budget deliberations last December, this recent budget decision was focused on adjustments only. The points I discuss below cover just a small portion of the overall budget. I'd encourage you to check out my thoughts from last year's budget to get a fuller picture of how we're investing in Edmontonians during the full four years.
Finding savings
Recognizing the economic challenges we all face, Council worked hard to identify savings above and beyond what was originally proposed in the budget. Between budget reductions and using a larger-than-expected EPCOR dividend, we were able to both reduce the proposed tax increase from 7.09% to 6.6% and invest in key priorities. These reductions included creative efficiencies, like taking a different approach to City insurance and allowing On Demand vehicles to purchase gas from City fueling stations. They also included prudent financial management like reducing management bonuses and redirecting funds from external partner projects that have been stalled for a number of years.
These actions are part of the work Council and City staff are doing to find $240m over the next four years to reinvest in the services and strategies that help us support all Edmontonians. There will be more to come in the spring and I look forward to this ongoing work of fiscal responsibility.
Funding priorities
In addition to finding savings, we also found ways to invest in core services that Edmontonians are asking for.
Edmonton Transit Service (ETS) has had no additional conventional bus hours added since 2016, leading to a gap of 260,000 annual service hours to meet service standards. As it stood, we wouldn't have been able to invest meaningfully in service hour increases until after the new bus garage was completed in 2029. But during this budget adjustment, we were able to take advantage of two unique opportunities to bring more transit service online sooner.
With the Valley Line Southeast LRT up and running, we were able to reallocate 70,000 service hours from the bus precursor service. We were also able to take advantage of an opportunity to lease a satellite bus barn, allowing us to purchase 20 new buses and provide 50,000 annual hours of new service. The 120,000 total new hours will go towards providing new routes, improving frequencies and coverage, and adding more peak and off peak service. These changes will go a long way to ensure that all Edmontonians have access to an efficient and affordable option to get around the city.
Knowing the significant impact that encampments continue to have in ward O-day'min and across the city, our budget also included an additional $3m for encampment response next year. As I've discussed before, it is unacceptable to have encampments in our community and we will continue working to invest in both immediate responses and long term solutions. We can't do this alone and I hope we can continue to work in collaboration with our Provincial partners to address the housing crisis. I'm encouraged by the Province's recent commitment to 1,700 emergency shelter spaces in Edmonton this winter. This will almost triple our current capacity and is a critical first step in reducing encampments in our city.
I was also pleased to support $450,000 a year starting in 2025 to support expanding the Heritage Valley branch of EPL. Our libraries are such an important part of the fabric of our city and I'm so grateful to EPL for finding a cost effective way to increase this public service.
Evidence-based decision making
Another key outcome of our budget deliberations was holding off on some decisions until the spring. This will allow us to have actual, rather than speculative, information to guide our decision making. In these uncertain times, it's hard to predict our financial future. By waiting until the spring, we have provided ourselves flexibility to respond to changing conditions. We'll be able to make informed choices that align with the best interests of our city, now and in the future. My top priorities for the spring will be securing resources for the enforcement of noisy vehicles, transit and downtown safety, and core maintenance services.
Moving forward
I'm grateful to Mayor Sohi for his leadership in these budget conversations and for all the collaboration between my Council colleagues. It's tempting to make short-term decisions that neglect critical needs or defer tough decisions to the next election cycle. I'm proud that we instead found ways to weather the storms of today while also laying the foundation for a resilient and thriving Edmonton in the years to come.
Thank you for your ongoing engagement, and please don't hesitate to reach out to my office (anne.stevenson@edmonton.ca or 780-496-8333) with any questions or concerns.
