Projected financial shortfall could see city halt spending on new projects
Edmonton City Council during budget talks in December 2022 (Jeremy Thompson/CTV News Edmonton.)
New projects could take a backseat to maintenance and renewal work in Edmonton over the coming years as city council tries to rein in spending and adapt to new financial pressures.
Councillors received an update on city finances Monday morning as they look for ways to cut down the projected 13-per-cent property tax hike projected for 2025.
This year has presented new financial challenges, including firefighters and bus drivers working more overtime than expected, partly because of unfilled jobs and staff on stress leave.
Gasoline prices are up and revenue from certain construction permits and transit is down along with funding from the province.
The city is also paying down debt for money it borrowed to build several recent major projects such as recreation centres, light-rail transit and roads.
"All of these pieces are just adding up," Ward Papastew Coun. Michael Janz told media. "It's kind of like we moved into the new home, we redid the kitchen, we redid the garage, we put in a hot tub, and now, there's no money to spend for the next decade."
City staff are projecting a $34-million deficit this year.
Multiple councillors say the city needs to make structural changes to how it operates as a corporation.
Suggestions include a tighter focus on core city services and dedicating most new spending to maintenance work for a few years.
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