A 5-Point Plan For Budget 2018

As City Council heads towards our budget debates later this fall, we get another opportunity to show how serious we are about our economic resilience and our commitment to keeping taxes reasonable while we serve Edmontonians. I’ve thought long and hard about this and I’m happy to share my plan to keep Edmonton on a sound fiscal path.

I have heard loud and clear from Edmontonians – and the business community in particular – that they no longer want to see tax increases that are out of step with inflation or the pace of growth. I know that policy decisions locally, provincially and nationally have added incremental costs to households and businesses, and that this has had cumulative impact on our cost competitiveness. And I know Council has heard these calls too – which is why you’re already hearing more about restraint from Council.

However, it’s important to know that we didn’t suddenly wake up and realize we had to be more prudent with your tax dollars. Quite the opposite, in fact. If you’ll recall back to my 2013 election platform, I called for administration to find savings in its operations each and every year. And since 2013, nearly $68 million in savings have been harvested to cover other pressures or reduce the tax burden—our taxes would be 4% higher without those efforts. I’ve also championed applying more data and analytics in our decision-making so can be more precise with our services and quickly adapt to new pressures. But we can do more.

That’s why I’m proposing a five point plan to keep Edmonton’s budget on track:

1. Roll back the subsidy on suburban growth: City analysis shows that new suburban growth has been significantly subsidized by existing taxpayers, and especially businesses. It’s time to use different tools to fairly allocate the costs of growth such as rec centres, fire stations and key roadways without deeply impacting housing affordability.
2. Secure a new long-term funding deal with the province: Provincial infrastructure grants have been slashed while our city keeps growing. Edmonton’s growth is pivotal to our region and our province’s economy. We need a new deal with the province to cover key infrastructure costs while lessening the property tax burden on Edmontonians.
3. Make cuts where services are no longer relevant or effective: Our Program and Service Review is carefully analyzing every City service and program for its efficiency and effectiveness. Following through on the review’s findings will mean tough decisions for Council on facilities and services.
4. Protect the investments we’ve made in our core infrastructure: In the 1990s we didn’t invest in our roads and sewers – and our city fell behind. We must continue with our support of neighbourhood renewal, investments in Yellowhead Trail and expanding our LRT network to keep Edmonton moving.
5. Limit new spending: There will be many new spending asks for Council to consider. Any new spending must deliver long-term efficiencies and a return on investment for Edmonton taxpayers.

This will undoubtedly be City Council’s toughest budget in a decade or so. The pressures we face are not only our own, they come from other orders of government, they come from our business community, and they come from our citizens.

Over the coming weeks, my office will roll out more details about this plan to pass a budget that reflects the priorities of Edmontonians and allows our city to continue to grow. Tomorrow morning, I’ll speak to the media at 9:15 a.m. and on the evening of October 24th, I’ll take your questions on Facebook live.

But we can do more – if we can be more creative about how we work through these challenges, and commit to restraint, we will put Edmonton in a position to thrive for decades to come.