As Edmonton city council contemplates an 8.1% rate hike, here’s what’s in the 2025 budget

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City council will debate Edmonton’s municipal budget this month and set the property tax increase for next year.

Administrative staff released drafts of the operating and capital budgets on Thursday. Council will need to decide whether to accept the recommendations with an 8.1 per cent property tax increase, cut services to keep the rate lower, or add new programs that will increase the rate. Budget discussions are set to start Nov. 13 at city hall.

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Here’s what’s proposed for next year.

Most services will be the same

Just as Edmontonians are experiencing rising costs in their daily lives, the City of Edmonton says the same is true for the municipality.

There isn’t much new in this budget.

Most of the overall 8.1 per cent increase, according to the city, simply covers rising costs to keep a similar level of service across all the different city departments, such as filling potholes, snow removal, public transit and parks and recreation. After years of lower increases despite inflation, and with rising population, the city says there’s a higher demand for existing programs.

In general, the city’s three largest ongoing costs are police, public transit, and payments on debt taken out for capital projects such as LRT expansions, large road projects and recreation centres.

City officials reviewed all the departments and looked for places to potentially find savings, hoping to set the right balance between higher costs and cuts to programs, budget documents say.

City council tentatively approved a seven per cent increase for 2025 earlier this year. The municipality’s finance department is suggesting another one per cent each of the next two years to replenish Edmonton’s rainy-day fund, the Financial Stabilization Reserve (FSR). That fund will be mostly depleted by the end of the year after paying out two years of deficits — Edmonton expects to be $34.4 million in the red by the end of 2024. The other 0.1 per cent is tied to higher-than-expected costs for the next civic election.

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A large portion goes to salaries — about half of the approximately $3.7-billion operating budget. Many city employees saw increases this year after settling long-standing labour disputes. Related costs include about $5.2 million more for employee benefits premiums and $1.5 million toward paying higher Workers’ Compensation Board premiums.

Neighbourhood renewal, Terwillegar Drive, renos

Most of the $151 million new for the city’s capital budget was earmarked for projects already approved at various stages. While property taxes don’t pay for capital projects directly, public dollars are used to make payments on the debt borrowed for construction.

The largest capital budget top-up, $87.4 million, will continue the long-standing neighbourhood renewal program. Funds are being shifted from a dedicated reserve toward neighbourhood reconstruction in Overlanders and Homesteader, and for both neighbourhood and alley renewal in Hillview and Glenwood.

The second-most expensive item is the increase in costs to expand Terwillegar Drive expressway — $41 million, but this will be paid for with a provincial grant.

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Renos: buildings, bridges, trails, and Harbin Gate

Big renovations to some existing city office buildings is one new expense.

The capital budget includes $22.7 million to retrofit other civic buildings to accommodate staff currently working out of Chancery Hall and Century Place. Edmonton is planning to close and sell those buildings and the land — which will ultimately save the city money — but says buildings need some renovations to accommodate the shift in the meantime. The plan is to pay off the cost of renovations with proceeds from the land sales down the road.

There’s also funding to replace Wellington Bridge ($29 million), upgrade a snow storage site ($28.8 million), and renew Beverly Bridge ($16.7 million). As well, $6 million to finish Chinatown’s Harbin Gate and $7 million to renew trails in Rundle Park is included.

Costly elections, fuel, building maintenance

To the operating budget: one significant unexpected cost is next year’s municipal election.

New rules legislated by the Alberta government this year will cost about $3.1 million for the city to implement for the October 2025 election, a budget report states. Costs are driven by rules that prevent using electronic vote-counting machines, or tabulators, meaning the city will need to hire more people to count ballots by hand. Keeping a permanent electors list and tracking new campaign financing requirements are also adding to the bill.

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Keeping vehicles running and buildings open is a growing expense.

Fuel and maintenance for buses, snow plows and other city vehicles, and buildings, will cost about $19.7 million more in 2025, administrative staff are projecting. Budget documents say without this increase some Edmonton Transit Buses (ETS) buses could be grounded and put out of service at a time when ridership levels are reaching a high point.

There’s also another $871,000 to maintain community and recreation facilities.

Theatre and policing

City council agreed earlier this year to maintain Citadel Theatre when the building’s lease expired. That cost is estimated at $1.4 million in 2025. Operating the Orange Hub will also be more expensive than expected, up $320,000.

There are one-time costs for renaming Oliver to Wîhkwêntôwin for about $500,000, also approved by council.

Edmonton Police Service (EPS) will see an increase in 2025 as well — $880,000. The increase is automatic, set by the council-approved funding formula. There’s a much bigger increase set for 2026 of $7 million.

City policy requires that police funding not make up more than 30 per cent of the total civic spending. For 2025, EPS funding will account for 28.3 per cent, and 29.5 per cent in 2026.

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Fixing asphalt and concrete broken for utilities

Adding $2 million to repair roads and sidewalks broken by installing utilities is part of the plan.

This program was paused in 2020 and eliminated in 2021, but the work continued by pulling in resources from other programs. The draft budget asks for money specific to this work, so staff aren’t taken away from their other duties: filling potholes and snow and ice removal.

There’s also $2.7 million for technology and software licensing and maintenance, $450,000 to do sweeps of bird nests before and after turf and horticultural season, and $500,000 for parking enforcement contract costs.

As well, the city needs to fill a $1.3-million hole for lost rent from selling off city-owned properties which will, over time, save money.

Not included: school sites, mowing and weeding, cleanup for BIAs

There are a few optional projects city council could add when budget debates begin this month.

Setting aside money to prepare land for future schools is on the table.

If council wants to proceed — in response to Alberta’s school accelerator program — this would add $27.1 million to the capital budget in addition to $13 million, specifically for a future grades 7-12 school in Glenridding at Windermere District Park.

As for ongoing costs, council could choose to spend an extra $10.2 million for grass mowing and weeding. There’s an associated $1.9 million cost on top of this to buy 14 John Deere and four Toro motors, one two-tonne truck and a wood chipper.

Another option is continuing the popular enhanced Downtown cleanup program and expanding it to the 13 BIAs by spending $6.3-$6.7 million.

lboothby@postmedia.com

@laurby

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