HOLDING THE LINE
Council votes for tax freeze
Edmonton city council has approved a property tax freeze for the first time since 1997.
In finalizing the 2021 budget adjustments Friday, council found $64 million in savings to reduce next year's tax levy from the previously-approved 3.2 per cent to provide some economic relief to residents and business owners during the COVID-19 pandemic.
The budget passed 12-1 with Coun. Mike Nickel the sole vote in opposition.
But the tax freeze doesn't come without some cuts to city service levels and operations that impact residents.
Transit fares for tickets and passes will increase by two per cent in February, while cash fares will remain at $3.50 until May with further discussion about the proposed increase to be held in the spring. An adult monthly pass will jump to $100 from the current $97 price tag.
Using chemicals instead of manual labour more frequently to control weeds, a $500,000 cut to Edmonton Federation of Community Leagues funding and delaying the opening of outdoor pools into July are a few of about 90 budget changes in an effort to save money.
Mayor Don Iveson said it was a tough budget to get to zero, but felt it was necessary to provide a bit of a break for residents during the pandemic.
“This was a difficult budget. As is the case with many Edmontonians and businesses in our city, this year has been hard financially,” he said. “During these trying times, Edmontonians do look to their city for support and for the important and essential municipal services that we provide them.”
Some of the proposed cuts to the
budget were overturned by council during deliberations Wednesday night with offsetting funding found in the city's reserve as well as a $1.1-million ongoing reduction to the Edmonton Public Library budget.
Council unanimously reinstated the five city recreation facilities that were on the chopping block next year to save $1.2 million next year after significant pushback from local community leagues. Oliver, Scona and Eastglen pools, as well as Oliver and Tipton arenas, will remain in operation, but the city will be working to develop new amenities to serve as replacements for the aging facilities.
Transit service will not be reduced when the new bus network comes online next April, as was initially proposed, and the city will continue to offer its spay and neu
ter service. Council also reinstated the $3.75-million community investment operating grant program for next year, using a portion of the $5.5 million diverted from the Edmonton Police Service budget approved in 2018, and city staff have been directed to work on reimagining the program for future years. The police budget for 2021 is $383.8 million.
With the cuts in services come impacts to the city's workforce.
Interim city manager Adam Laughlin said 347 full-time equivalent positions will be permanently impacted as the workforce budget dropped by $18.2 million. About 112 current employees will need to be laid off as a result, with the remaining positions vacant. Of the affected employees, 91 per cent will be from union positions.
“The work of every City of Ed
monton employee is important and adds significant value to Edmontonians. Any reductions, whether they are staffing or service reductions, will be a loss to someone in our community. This was hard work,” said an emotional Laughlin. “Unfortunately, there will be a loss of staff decisions. With the budget now concluded, administration will work through the next steps related to these workforce reductions and we plan to have this completed in early 2021.”
Edmonton Chamber of Commerce president and CEO Janet Riopel commended city council for being able to reach the goal of a tax freeze during these difficult times for many families and businesses.
“Businesses and families across our region have had to dig deep and find cost savings throughout the economic downturn, and COVID
has only served to compound their struggles. By taking this action, city council has demonstrated they appreciate the challenges job creators and Edmontonians are facing,” Riopel said in a statement. “The city has shown flexibility and creativity to achieve this zero-per-cent increase, and we urge a continued commitment to transformational change in order to make our city more efficient for the long run.”
Assessment values and the mill rate for Edmonton's portion of the provincial education property taxes will be determined next year and discussed during spring budget adjustments. As of right now, the city projects residents of a typical $387,000 home would pay $2,538 in property taxes.