Edmonton City Council has finalized its 2025 budget, resulting in a property tax increase that has left at least two councillors openly disappointed. The approved 6.9 per cent hike surpasses the initial 6.4 per cent proposed by city administration and marks a significant departure from council's earlier financial plan.
Councillors Voice Opposition to Spending
Ward tastawiyiniwak Councillor Karen Principe required a moment to compose herself following the Thursday vote, which saw her and Ward pihêsiwin Councillor Mike Elliott stand as the lone dissenters. The decision finalizes a total operating budget of $3.93 billion and a capital budget of $2.3 billion.
"No doubt I’m disappointed," Principe stated. "I was hoping to see a tax decrease, not an increase. I was really hoping this council was going to make some tough decisions and say 'no' and have priorities and stick with them."
Proposed Cuts and Financial Impact
In an effort to reduce the burden on taxpayers, Principe put forward several amendments aimed at trimming nearly $29 million from city expenses. Her proposals included:
- Delaying the demolition of the Argyll Velodrome.
- Pushing back the completion of an integrated control centre for Edmonton Transit Service.
- Halting upgrades to bike racks on buses and passenger counters on the LRT.
- Reducing funding for vandalism control.
- Redirecting money from an unknown risks fund and the Epcor dividend toward the tax levy.
However, these motions were all defeated. Had they passed, they would have resulted in a modest 0.1 per cent reduction in the property tax increase, though they would have also meant forfeiting approximately $4.5 million in federal funding for capital projects.
Breaking a Fiscal Promise
The approved hike represents a broken commitment for the council. When the four-year budget cycle was initiated in 2023, the plan was to keep annual tax increases at or below 5 per cent. Council members cited runaway inflation in the wake of the COVID-19 pandemic, coupled with rapid population growth, as the primary factors that derailed this goal.
Principe expressed concern about the city's future fiscal health, noting, "There are many things coming forward that we are likely going to have to say 'no' to try to control the debt and deficit the city’s facing."
For the average Edmonton homeowner, the 6.9 per cent increase translates to paying $816 for every $100,000 of assessed property value. This means the owner of a home valued at $400,000 will see a property tax bill of approximately $3,264.