Getting to 0%: budget discussions begin at Council

City Council will begin discussing the fall budget adjustment with the objective of reaching a 0% tax increase for 2021. To get there, City Administration has identified $56.5 million in proposed budget reductions, including:

• $9.7 million in efficiencies,
• $6.4 million in expense reductions (i.e. contracts, professional services, travel, and training),
• $1.4 million in savings from facility closures,
• $6.4 million in reductions to funding to community partners,
• $1.2 million in increased revenues,
• $13.2 million in service level reductions,
• $18.2 million in workforce strategies (i.e. vacancy management, personnel reductions, overtime reductions, and strategies that consolidate work).

Reducing costs is not new to our approach. Between 2014 and 2018, Council directed Administration to find annual savings equivalent to 2% of the annual tax levy through innovation and continuous improvement, leading to over $127 million in efficiencies. In recent years, the City has been reviewing all services for efficiency, effectiveness and relevance through the Program and Service Review. In addition to those adjustments, late last year, the City quickly cut about $25 million in response to sudden changes in provincial funding to municipalities.

All this being said, it’s important to stress that because we have already been trimming for years getting to 0% will likely require some noticeable changes to services that Edmontonians receive. However, my goal throughout this budget discussion will be to find efficiencies while ensuring the City is providing our communities with what we need to weather this pandemic, like maintaining critical infrastructure and services that keep Edmontonians safe. It’s also essential we keep investing in assets and services that will allow Edmonton to emerge, post-COVID, a healthy, urban and climate-resilient city that supports a prosperous metro region.

Although Council discussions are just beginning, I’d like to thank City Administration for finding these expense reductions as a starting point. I’m also looking forward to hearing from Edmontonians at the budget public hearing on December 3. 

Finally, I would like to make clear that our work on reducing costs and supporting economic recovery will not end after these budget discussions. Next year, we will get into the bulk of the “Reimagine” work, which will include major reviews of City services. This work will be critical to how the City adapts to the new normal and emerges stronger than before.

Read more on the City of Edmonton’s budget process here.