Budget Restraint
This year’s three-year Operating Budget binder is exactly 734 pages long, and over the past week I’ve been over it numerous times looking for ways to reduce what Council is asking you to contribute to building, running, and fixing our City.
When planning for this budget started, we were the fastest growing city in the country. And while we’ve fared better than the rest of Alberta, we have slowed down and every day I hear stories of businesses making tough decisions and, in turn, families coming to grips with layoffs.
That’s why the proposed hike of 4.9% a year is a lot to ask of Edmontonians, and why I’ll work with Council to bring this number down – hopefully into the mid-3% range.
At its core, our job is to ensure the City respects every tax dollar you give us, no matter what shape the economy is in. In times of constraint, however, that means doing the basic things the city needs to continue operating, while making hard choices about the ‘nice to haves’ that can very quickly drive up the tax rate. It also means not spending property tax dollars on areas that fall under provincial jurisdiction, like housing. When it’s all said and done, almost $60 million in worthy new projects and initiatives will likely go unfunded, all in the name of restraint.
One proposal I have is to take a hard look at the City’s Neighbourhood Renewal Program – currently a 1.5% tax increase every year in this 2016-2018 budget. My suggestion at Transportation Committee yesterday was aimed at suspending this dedicated 1.5% annual tax increase for the next three years, looking instead to fund this program from savings on other work and from revenue sources other than property taxes as they become available.
I’m confident that we’ll be able to maintain the planned pace of work for 2016. However, for 2017 and 2018 we’ll have to see what happens to pricing, transfers from others orders of governments, and where the economy is tracking. Much has been promised by the new provincial and federal governments in the way of new transfers to cities, but it’s too soon to bank on them, so we’ll re-evaluate after the their spring budgets.
Council’s full budget deliberations will begin on November 27th and there will be many other adjustments to the budget as we go along. Rather than rushing to make unfocused cuts, my colleagues and I directed City staff to start on a full-scale program and service level review of the City’s operations that will scrutinize program effectiveness and deliver real and sustainable savings in the months and years ahead. This sort of review is key to ensuring good value for your money and strategically evaluating the efficacy of our operations.
All of this will be on top of the $53 million in cost-avoidance and efficiency reallocations already identified last year and this year through Council’s 2% initiative. My office (along with Councillor offices) have also flatlined our budgets for the next three years.
This budget, in this climate, is all about having the discipline to stick to our own jurisdiction – and the restraint to stick to the essentials. Tax relief is equally important for businesses as it is for homeowners, and I’m personally committed to bringing the number down.
8 thoughts on “Budget Restraint”
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3% increase is still a lot to ask in economic conditions where most will see no wage increase.
If now is not the time to be more responsible, when is? Will the taxes ever go down or stay the same? Will there ever be enough money?
Perhaps the City should look at flatlining the entire budget for at least the next year. It is going to be hard enough dealing with the increased taxes the provincial and federal governments are placing on us (who knows how much the rail tax increase will be felt by consumers?) Many, many Albertans have lost their jobs – the City needs to be very conscious of this and not add to the burden of its citizens.
Don’t you dare raise taxes to fund the AGA..
If you don’t like it, move to Sherwood Park or Leduc.
Will the city look into tax revenue from surrounding municipalities?
If people who live in St. Albert, or Leduc come into the city to work and take advantage of the city’s services, how does the city recoup this expense?
Now, if you reverse your “stance” on LRT spending. You are spending money that Edmontonians do not want you to spend…. You are destroying your reputation, and creating a white elephant, and letting other people fund this…. Why don’t you fund this with your own dollars… Most edmontonians don’t even use the LRT. You and your administration were a mistake to get elected…
It is unfortunate that Council has been playing this game with us for the past couple of years. … talking about a significant increase in taxes ahead of the budget and then at the last minute lowering it by a little to give the impression to the public that Council is on our side so that we feel grateful that the initial tax hike didn’t get approved.
I agree with the others’ comments; there should be a tax freeze given the current economic situation. Instead, Council should be more focused on making sure that there is more accountability at the management level so that projects get done more effectively and on budget rather than asking us to bear the brunt of all this mismanagement of City resources.
Thanks.
Why are we spending money foolishly in tough economic times on bike lanes which do not work and rather allocate the money towards policing,homeless , etc.?
Why is the media so blind to this but more so……………to our City council?
Ya know it is semi respectfully submitted but how can we respect Don (a real mayor represents his people) when money is blown and allocated to dumb projects?
Peace brothers and sisters!