Edmonton homeowners are facing a confirmed property tax increase of 6.92 per cent next year, following a key budget decision by City Council on Wednesday, December 3, 2025. The rise comes after councillors voted to provide stable, ongoing funding to the city's tourism and marketing agency, Explore Edmonton.
Councillor's 'Rip Off the Band-Aid' Motion Defeated
Before settling on the 6.9 per cent increase, council debated a much more aggressive proposal. Councillor Aaron Paquette put forward a motion calling for the city to immediately inject $64.5 million into its financial stabilization reserve, restoring the fund to its minimum required balance in a single year.
Paquette argued this approach would "rip off the Band-Aid," preventing larger tax hikes in future years. "The numbers don't lie and the facts don't lie," Paquette told council. He warned that under the current multi-year repayment plan, ratepayers could face significant ongoing increases as the city defers essential costs.
His motion would have pushed the 2026 property tax increase to over nine per cent. However, the proposal was soundly defeated in a 12-1 vote, with Paquette casting the sole vote in favour.
Explore Edmonton Secures Ongoing Funding
The central budget decision saw council approve a motion by Councillor Erin Rutherford to provide $11 million in additional annual funding to Explore Edmonton through the municipal tax levy. The vote passed 8-5, securing the agency's financial future.
Mayor Andrew Knack, who voted against the motion, acknowledged the economic value of the agency. He told reporters that every dollar spent on Explore Edmonton generates approximately $29 for the local economy, benefiting hotels, restaurants, and small businesses across the city.
The approved funding solidifies the 6.9 per cent tax increase, with one final day of budget deliberations remaining to finalize the city's $3.8 billion operating budget.
Implications for Edmonton Homeowners and City Finances
The council's decisions have several key implications:
- Immediate Tax Impact: The average Edmonton homeowner will see their property tax bill rise by nearly 7 per cent in 2026.
- Reserve Repayment Plan: The city will proceed with repaying its financial stabilization reserve over the next three years, rather than immediately.
- Tourism Economy Support: Explore Edmonton receives stable funding to continue attracting events and visitors to the city.
The debate highlighted a fundamental tension in municipal budgeting: balancing immediate taxpayer relief with long-term fiscal sustainability. While council opted against the sharper short-term pain proposed by Councillor Paquette, the approved increase still represents a significant cost for residents amid broader economic pressures.
