Edmonton's newly elected city council has moved swiftly to propose a substantial increase in property taxes, a decision that has sparked debate about fiscal responsibility and affordability for residents.
A Swift Decision on Tax Increases
On the 45th day of its term, following an October municipal election, the current Edmonton city council voted in favour of a 6.92 per cent property tax increase for homeowners. This vote occurred on a Wednesday, just one day after city administration had presented a recommendation for a 6.4 per cent hike. The majority supporting this move consists largely of returning councillors from the previous council.
The additional spending power sought by the council majority is intended to better fund the city's tourism office. The decision suggests a continuation of the previous council's spending approach, which critics argue operates under the assumption that taxpayers have unlimited capacity to fund municipal projects.
Proposals and Votes: A Range of Opinions
The debate revealed varying appetites for tax increases. Ward Dene Councillor Aaron Paquette proposed an even more aggressive measure, suggesting a single-year tax increase of well over nine per cent. His goal was to fully replenish the city's depleted "financial stabilization reserve" in one move, rather than through instalments. This reserve, used in recent years to cover budgetary overspending, has been drawn down by $64.5 million.
Paquette's proposal was voted down by every other councillor. However, the core motion for added expenditures leading to the 6.92 per cent hike passed with support from most. The notable exceptions who voted against the added spending were Councillors Reed Clarke, Thu Parmar, Karen Principe, and Michael Elliott. Surprisingly, Mayor Andrew Knack also voted against the additional spending, despite being in favour of the original 6.4 per cent increase recommended by administration.
Long-Term Impact and Political Irony
If approved in the final budget, this increase would add to a significant cumulative tax burden for Edmonton homeowners. Over the past three years, property taxes have risen by approximately 22 per cent. Looking back a decade, the total increase exceeds 45 per cent, even when accounting for smaller hikes during the pandemic years.
An ironic point highlighted by critics is that every councillor who endorsed this increase had been supported by Working Families Edmonton. This coalition of unions and environmentalists, which operated as a municipal party without formally admitting it, claims to represent working families. Critics argue that the proposed tax hike will place the greatest financial strain on those very households, especially if their income has not kept pace with the rising cost of municipal government.
The council's decision sets the stage for further budget deliberations, with the final tax rate still subject to change. The move underscores ongoing tensions at Edmonton City Hall between funding civic ambitions and maintaining affordability for taxpayers.
