BUDGET 2024
A Tough Budget
Last week's budget decision was a hard one. With so many Edmontonians facing their own financial pressures, it weighed heavy to add to this burden with an 8.9% tax increase. I understand the stress that this puts on businesses, families, and individuals alike - and the justifiable frustration some are feeling.
As hard as this decision was, it was one that Council made unanimously. For me this speaks to the tough reality of where we are right now, and the difficult choices we need to make to set our city up for long-term success.
I wanted to take this opportunity to share my thoughts on the budget process and where I see us going next.
How we got here
A number of external factors have led us to our current situation. My colleagues Councillors Salvador and Knack have provided excellent overviews of these factors but in brief:
Property taxes have been kept below the rate of inflation for many years. These haven't been savings, they've been deferred costs that are now coming due.
The cost of doing City business - from labour to equipment to utilities - have all been increasing. The same inflation that's hitting Edmontonians is impacting the City too.
Support we relied on from the Province is no longer available. They are contributing about $70m less a year in operating dollars, and infrastructure grants are about a third of what they were in 2011.
We are growing rapidly as a city, with 65,000 new residents added in 2023. This creates more demands on our programs and services.
But there's hope amidst these challenges. We have a solid credit rating and we are well within budget limits set by policy. Staff and Council have found a cumulative of $1.9B in savings since 2015 and we are on track to realize millions more in funding reallocations as part of our OP12 exercise. The urgency to continue making best use of our collective resources is clear and is something I will remain focused on.
What we got done
Beyond the headline numbers, there are important things Council was able to do through this budget. We protected the services that our residents rely on every day, and invested in the incredible staff who make these services possible. We kept funding in place for enhanced cleaning in the central neighbourhoods, an essential part of our economic recovery and downtown revitalization. We invested in local businesses by helping to grow our visitor economy. We avoided significant increases to user fees to help keep transit, recreation, and other services affordable. And we introduced supports for seniors who struggle to clear their sidewalks of snow. Amidst the challenges, these steps are setting the foundations for a thriving community.
What's next
Our work is far from done. Over the next six months, I will stay focused on how we prioritize our spending to deliver quality services for Edmontonians and ensure we put our city on a path to a financially sustainable future. While the road ahead may be challenging, I'm confident that by working together, we can build a better Edmonton for everyone.
