Edmonton property tax increase will sit at 6.4% in the new year

Edmonton city staff tabled a budget that maintains the 6.4 per cent property tax increase for 2026. CTV News Edmonton's Jeremy Thompson reports.

The average Edmonton homeowner will be looking at paying an extra $230 a year come 2026 after the city tabled its budget Thursday afternoon.

City staff said they worked hard to keep the increase as low as possible, but absorbing tens of millions of dollars in extra costs from inflation has been difficult resulting in cuts to some city services like bus and facility cleaning.

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“In this budget update, we’re recommending $13 million in increases to budget for some services that are consistently costing more to deliver like animal care and control, spring street sweeping and vandalism repairs,” said Stacey Padbury, deputy city manager and CFO.

It also recommends not paying for new buses, extra paving on arterial roads or planning and design for a handful of road-widening projects.

“For the past few years, we’ve been taking the fiscally responsible steps needed to bring the budget in line with the increasing cost of service delivery,” said Padbury.

Since 2023, the city said it has made adjustments to the four-year budget in response to pressures from inflation and rapid population growth.

“While the city planned for these pressures, they’re much bigger than what was forecast when the budget was developed in 2022,” said a statement from city staff. “These challenges contributed to deficits in 2023 and 2024 and continue to impact city finances.”

The adjustment proposes $24 million in new projects including the demolition of the Argyll Park velodrome, replacing the roof on the Rossdale Power Plant and prepping land for new schools.

Rising home values will earn the city about $23 million more than expected. City investments are also earning more revenue than anticipated.

Meanwhile, administration recommends that $22 million in one-time revenues and savings be used to help restore the Financial Stabilization Reserve to its minimum threshold.

The reserve is used to offset one-time financial pressures such as deficits. The city said it was drawn below its minimum balance to address deficits in the last two years.

City staff also propose adding $98 million to budget for existing projects like neighbourhood renewal and fire stations to account for inflation on parts and labour.

Next year marks the final of the current four-year budget, giving council little wiggle room to make major changes.

Council will start with the proposed budget as a baseline once talks begin next month.

Reports will be presented to council on Nov. 25. Council will then decide on any adjustments to the budget from Dec. 1 to 4.