Sohi motion cuts nearly $70M from Edmonton budget but adds $91M in new spending

Edmontonians are staring down a five per cent tax increase from city hall, and it could get even higher.

On Tuesday night, council continued to spend more than save, despite passing Mayor Amarjeet Sohi's multipart motion that included nearly $70 million in cuts.

The result will be less money for planning the LRT expansion to the northwest and a hiring freeze for vacant city positions.

"It will look at streamlining the management, it will look at layers of accountability within the organization, it will look at consultant fees," Sohi explained.

But the same motion also included $91 million in new spending, including money to staff affordable housing support, respond to homeless camps and improve snow clearing.

"Invest in services that increase affordability overall for the community and for households," Sohi urged.

With the mayor’s motion passed, the projected tax increase has gone up, to more than five per cent per year in the next two years and up over four percent per year from 2025 on.

Coun. Erin Rutherford is frustrated by all the spending and some of her colleagues who are supporting it.

"Yeah, we have an increase. I don't think there’s any way of avoiding an increase, but not to this level," the Ward Anirniq representative said.

"I’m seeing a lot of the councillors that often talk about fiscal responsibility being the ones that are not moving any reductions and approving a lot of the increases."

Another cost that will go up for Edmontonians is parking downtown, with roughly 90 E-park spaces getting more expensive.

Drivers will also have to pay to park in the evenings and on Sundays, in a move expected to generate an extra $2 million a year for the city.

"By no means is this a drastic change, but it is, I think, a prudent way to make sure we’re managing our parking resources in the most efficient way possible," said Coun. Ashley Salvador.

"The things that have been put on the table as increases and additions, I do think are absolutely worthwhile, and are going to contribute to a better city overall."

Council is expected to approve a final increase on Friday.