Edmonton residents are facing significant property tax increases as the city addresses what Mayor Andrew Knack describes as the financial aftermath of pandemic-era restraint. The current administration is proposing a 6.4% tax hike for 2026, marking the continuation of a trend that began in 2023.
The Pandemic Restraint Strategy
During his time as a city councillor from 2019 to 2022, Andrew Knack supported decisions to maintain historically low property tax increases. The COVID-19 lockdowns created unprecedented economic uncertainty, with many Edmontonians facing job losses and income instability. Council deliberately chose not to have taxes keep pace with inflation during this difficult period.
"We were in an incredibly uncertain economic time," Knack recalled during a recent city hall briefing. "People were losing their jobs, people didn't have employment stability, income stability. So, we made a very deliberate decision... I knowingly made those decisions to have the lowest property-tax increases in more than 25 years."
The Reckoning Arrives
Council members understood that their restraint during the pandemic would eventually require compensation. Knack acknowledged that they knew "sooner or later, we were going to have to make up for that." The repayment cycle began in 2023 when Edmonton confronted a perfect storm of rapid population growth and soaring inflation rates.
Now serving as mayor, Knack is guiding council through the final year of the 2023-26 budget cycle, which has been characterized by substantial tax increases. City administration has requested another 6.4% hike for the coming year, with council deliberations scheduled for December 1-4, 2025.
Looking Toward Budget Reform
During his election campaign, Knack emphasized the need to transform Edmonton's budgeting process. He advocated for greater public collaboration and better identification of which services residents consider essential versus non-essential. However, these changes won't take effect until the next four-year budgeting cycle begins in 2027.
For the current year, Knack admits the focus is on keeping the city's "head above water." He aims to eliminate what he calls the "pendulum approach" to budgeting, where minimal increases during 2019-22 were followed by substantial hikes in 2023-26. Knack seeks to provide taxpayers with more predictability in future budget cycles.
"What I heard at a lot of the doors is that they (Edmontonians) are willing to pay, but they want to make sure they are seeing value," Knack explained. "By restructuring how the City of Edmonton will budget, that will give us the chance to co-create the next four-year budget with Edmontonians."
The city currently struggles with approximately $50 million in structural budget variances - areas where council has not funded services to desired levels. Knack identified snow removal and grass cutting as examples of services that have been underfunded due to budget constraints.
