The City Budget and the need for Federal funding to support Edmontonians through COVID-19

I updated the media yesterday on the Spring Operating Budget Adjustment reports released this afternoon. You can watch the press conference here:

First, I want to reiterate that this Council is very committed to bringing down the tax rate as low as possible and we understand everyone is struggling. I can’t promise an outcome for next week’s Council meeting, because we still need a full discussion with council and we are actively looking at ways our own office budgets can contribute to lowering the expenses, but I am glad that we’ve already come down from what was previously approved last December. That’s an extraordinary feat with a nine-figure hit projected to our revenues.

I also want to address recent talk of going into deficit or being given the ability to. Edmonton City Council feels very strongly that deficits are the wrong financial course for our City in this crisis.

This is why Mayors across the province and country have been calling upon provinces and the federal government for the same kind of urgent liquidity injections that households and businesses have received. We’re going to need strong municipalities more than ever to deliver essential services and support business and community rebound from Covid 19.

You may have heard our ask to the federal government yesterday from FCM — that municipalities nationwide face a near-term gap of $10-15 billion.

That assumes physical distancing continues for up to six months, with municipal revenue impacts continuing through the end of 2020.

We’re calling for at least $10 billion in emergency federal operating funding. That includes at least $7.6 billion in direct allocations (like the federal Gas Tax Fund) for all local governments—plus $2.4 billion for municipalities with transit systems (based 100% on ridership).

To be effective nationwide, funding should be straightforward, direct and flexible. That means a single transfer that municipalities can direct to areas of highest needs.

We don’t want to sound needy. It’s simply that municipalities literally have no way of covering for these funds without suddenly raising taxes or slashing services and I’m confident most Edmontonians don’t support those choices.