Alberta’s capital city will see some new funding from the Government of Alberta this year, plus some repeatedly-requested property tax payments.
Alberta Finance Minister Nate Horner on Thursday introduced the budget for the 2025-26 fiscal year, forecasting a deficit of $5.2 billion on revenues of $74.1 billion. They come after a surplus of $4.6 billion last year on revenue of $80.7 billion.
Property tax payments have been a point of contention between Edmonton and other Alberta municipalities since the Grant in Lieu of Taxes was reduced by 50 per cent between 2019 and 2020.
The province said it will be increasing the grants by $17.2 million this fiscal year, which will bring funding up to 75 per cent of eligible property taxes on provincially owned buildings. The grant is set to increase to 100 per cent in 2026.
“Our persistent and data-based advocacy on behalf of Edmontonians is paying off,” Mayor Amarjeet Sohi said. “I am glad that the province will start finally paying their full share of property taxes”
Sohi said the increased grant funding for property tax will be used to lower property taxes for Edmonton homeowners.
“That would help us reduce the burden on taxes and make people’s living more affordable.”
Sohi estimates the City of Edmonton is owed more than $90 million in unpaid provincial property taxes since the grant was reduced five years ago.
Finance Minister Nate Horner said there will “absolutely not” be any back pay on the properties.
“The premier, she was very clear on this. She wanted this program reinstated, we’re going to reinstate it,” Horner said. “The City of Edmonton is the biggest beneficiary of that return to that policy change, but no – $5.2-billion deficit and not a path back, no retroactive payments.”
Sohi said he’s also glad to see $106 million for downtown revitalization efforts in Edmonton, with $16.4 million to begin servicing land for housing in Edmonton’s Ice District and $52 million for a previously unannounced facility at the Fan Park east of Rogers Place.
The province said the indoor-outdoor community event centre is a collaboration between Alberta, the City of Edmonton and the Edmonton Oilers Entertainment Group.
It also includes $37.5 million for the demolition of the former Northlands Coliseum, which city administration previously estimated would cost about $35 million.
Calgary and Edmonton will share a combined $2.9 billion in provincial and federal funding for LRT projects.
Sohi has been pushing the province for years to bring Edmonton spending more fairly in-line with Calgary. He said he’s glad to see the province listening but that there’s a “long way to go.”
“I have identified a number of inequities that still exist, and I will continue to work with (the) provincial government and premier Smith and her ministers and staff to ensure that Edmonton receives full equity moving forward.”
All Alberta municipalities will receive $820 million this year to advance local priorities, for an increase of just over 13 per cent from last year.
