Edmonton projecting $67.8M surplus, council considering 'Band-Aid' investments
The City of Edmonton is projecting a small surplus this year of nearly $70 million, with council mulling how best to incorporate that money into a challenging budget cycle.
After better-than-expected cost-savings and higher interest returns on investments, the city says Edmonton is projected to end this fiscal year in the black with $67.8 million. That projection comes after administration received its third-quarter financial results.
The finalized amount will be known by the end of March once the city provides end-of-year financial statements. For budget deliberations over the next few weeks, councillors will have to decide what to do with around $42 million of the surplus that is available.
"In the grand scheme of things of a $3.2 billion budget, it's a bit of a drop in the bucket," said Coun. Keren Tang, who represents Ward Karhiio.
"It's a bit of a Band-Aid in the near term, and we need it because we are bleeding."
Mayor Amarjeet Sohi said on social media Thursday afternoon that he would prefer to invest the "benefits of our good fiscal management" to build more affordable housing, "take bold climate action," and expand the city's industrial tax base.
"I aim to tap into the city's smart use of funds to make sure your top priorities are funded," Sohi added.
Many major initiatives like on-demand transit, the Touch the Water Promenade, Anthony Henday Drive interchange at 135 Street and improvements to snow clearing remain unfunded by the proposed municipal budget that is already calling for four years of 3.9 per cent property tax rate increases.
Tim Cartmell, Ward pihêsiwin councillor, says the city has to be prudent with how it spends the surplus to not add further operating costs to future year budgets where a surplus is not guaranteed.
"Interest rates went up, we gained more money because of it," Cartmell said. "But on the other side of the ledger, what we are going to talk about in the next three weeks are a number of projects, a number of initiatives that require more money to support.
"If we borrow more money, that money is more expensive, loan costs are going up. So there's a bit of a yin and a yang here, so I would not get too carried away."
His concern is that if the whole surplus is spent on a new capital project, that would require the city to borrow money and a further $5 to $6 million in debt servicing costs — which approximately amounts to a 0.3 per cent property tax.
"It might help with some of our choices, but it does not solve our problem over the next three weeks," Cartmell added.
- 'Budget '23 is coming': Toews non-committal on Edmonton's ask for more help with shelter beds
- 'People are hurting': Edmontonians drop off donations for holiday food drive
Tang said the province revealed a projected surplus of $12.3 billion, which could make more of an impact on helping Edmonton deal with homelessness.
"I don't know what amount of money is going to resolve our challenge because the need keeps rising," she said. "At the same time, there are some pieces that need some immediate solutions."
CTVNews.ca Top Stories
BREAKING Trudeau promises $1B in loans for child-care providers to expand care centres
The federal government is launching a new loan program to help child-care providers in Canada expand their spaces, and will be extending further student loan forgiveness and training options for early childhood educators, Prime Minister Justin Trudeau announced Thursday.
Where is the worst place for allergy sufferers in Canada?
The spring allergy season has started early in many parts of Canada, with high levels of pollen in some cities already. Experts weigh in on which areas have it worse so far this season.
Sunshine list: These were the Ontario public sector's highest earners in 2023
Ontario released its annual sunshine list Thursday afternoon, noting that the largest year-over-year increases were in hospitals, municipalities, and post-secondary sectors.
Multiple bridges in Calgary shut down for police incident
Calgary police have shut down a number of bridges into and out of the downtown core as officers deal with a distraught individual.
N.B. man wins $64 million from Lotto 6/49
A New Brunswicker will go to bed Thursday night much richer than he was Wednesday after collecting on a winning lottery ticket he let sit on his bedroom dresser for nearly a year.
'Nonsense:' Doug Ford slams lawsuits filed by Ontario school boards against social media platforms
Premier Doug Ford says that lawsuits launched by four Ontario school boards against a trio of social media platforms are “nonsense” and risk becoming a distraction to the work that really matters.
Why some Christians are angry about Trump's 'God Bless the USA' Bible
Former U.S. President Donald Trump is officially selling a copy of the Bible themed to Lee Greenwood’s famous song, 'God Bless the USA.' But the concept of a Bible covered in the American flag has raised concern among religious circles.
Do these exercises for core strength if you can't stomach doing planks
Planks are one of the most effective exercises for strengthening your midsection, as they target all of your major core muscles: the transverse abdominis, rectus abdominis, external obliques and internal obliques. Yet despite the popularity of various 10-minute plank challenges, planking is actually one of the most dreaded core exercises, according to many fitness experts.
Several flight attendants from Pakistan have gone missing after landing in Canada
Multiple flight attendants from Pakistan International Airlines have abandoned their jobs and are believed to have sought asylum in Canada in the past year and a half, a spokesperson for the government-owned airline says.