Budget and Finances

September 8 Council Meeting and Report
The City presented Council with our latest operating and capital financial updates (current to June 30, 2026). These regular updates are one of the ways we keep Council and Edmontonians informed about our finances.

2026 projected year-end results show a $0.5 million surplus for tax-supported operations, which is within 0.01% of the overall $3.3 billion operating budget.

The majority of the City’s major capital projects (with budgets over $20M) are reporting on schedule and within budget. For more information on the delivery of construction projects, visit City-run Projects and Plans.

Council will also hear about the results of public engagement on the 2027-2030 budget.  Thank you to the almost 12,000 Edmontonians who shared their feedback. The results will support the City and Council as we build and finalize our plans for City services, construction projects, taxes and user fees for the next 4 years.

What We Heard Report 2027-2030 Budget 

June 16 Council Meeting Agenda and Report
Council received updates on how the City is working to maintain its $39 billion worth of infrastructure, including bridges, roads, recreation centres and fire halls for the next 4-year budget and beyond. Over the next 4 years, the City will focus on renewing the infrastructure we already have and depend on to keep Edmontonians and our city moving. The City’s infrastructure maintenance needs currently exceed available funding. To support this, the City is setting up a Dedicated Renewal Fund (DRF) reserve. It will hold money to use to help pay for renewal projects.

Council also heard about how the City is prioritizing our renewal projects in the next budget cycle and developing an overall program to manage our long-term capital plans. The City follows a clear process to determine which renewal projects should be prioritized. As a growing City, it’s important that we balance renewal work with important growth projects.

June 16 Council Meeting Agenda and Report
Council discussed the final capital budget adjustment for the 2023 to 2026 budget cycle.

The City regularly adjusts the 4-year budget so it can respond to any changing project needs, emerging issues and changing priorities. Council approved the recommended adjustments resulting in a $126.6 million (1.10%) net increase to the $11.56 billion capital budget.

Six projects will receive new funding. This includes:

• $66.0 million for the Southeast Transit Bus Garage
• $22.2 million for the rehabilitation of the Northbound Low Level Bridge
• $16.0 million for the rehabilitation of the 178 Street over Whitemud Drive Bridge
• $3.7 million for school sites base level development, includes a $250,000 provincial grant for a school or community park
• $1.3 million for the Taxation Assessment Collections System Transformation
• $0.6 million for the Koermann Block Demolition

On May 13, Administration shared two reports with Council.

1. Corporate User Fee Policy 
2. Investment Committee Report

The City is creating a Corporate User Fee Policy to provide a consistent, fair and transparent approach to setting user fees across all its services. As user fees have not increased with inflation or the City’s costs, this policy aims to improve accountability in how we set user fees and improve cost recovery for a better balance between those who use a service and taxpayers as a whole. The policy will be presented alongside the proposed 2027-2030 Budget in the fall.

The 2025 Investment Committee Report provides the performance results for the City’s investment portfolio. Over the last decade, the City’s investments have contributed over $1 billion in dividends and earnings. The report showed that City investments have outperformed their benchmarks over a one-year, four-year and ten-year basis. The City uses the investment earnings to support infrastructure needs for a growing population. The success of our investments has been a large factor in the City being able to provide a robust and growing capital program. The City’s Ed Tel Endowment Fund paid $48 million in dividends to the City in 2025 and ended the year at an all time high valuation of $1.2 billion dollars.

The City has strong investment policies and procedures and the funds are managed by experts to help maximize our investment returns and grow the City’s financial assets. As part of its commitment to financial accountability and transparency, the City shares its investment results every year.

See Agenda Items 7.2 and 7.3 for the Reports

On April 17, 2026, City Council finalized a 6.9% municipal property tax increase for 2026. The approved increase allows the City to address budget challenges and continue delivering the services and construction projects in the 2023-2026 budget.

The increase will affect property owners differently, depending how a property’s assessed value compares to the market. For example, a household with a 2026 assessment of $492,500 will pay $318 per month to help fund City services, including emergency services, parks, trails, roads, bridges, transit, recreation centres, attractions and social supports.

This is the last step in finalizing the tax levy, which determines the total amount of property tax the City needs to collect for the year. The 2026 Property Tax and Supplementary Property Tax Bylaw will be presented to City Council on April 28 which finalizes the tax rates for 2026. Property tax bills include municipal taxes, which are collected by the City to pay for City services, and provincial education taxes. These two taxes change at different rates each year, and are added together to make up the total tax amount property owners must pay. Tax notices will be mailed to all property owners on May 25, with property taxes due on June 30.

Council also discussed property taxes for the 2027-2030 budget cycle, including what’s driving increases and possible benchmarks, like household income and inflation.

Public engagement is on now to advise Administration on the development of the next 4-year budget. Tell us what matters to you through public engagement open until May 1. For details on how to get involved, visit engaged.edmonton.ca/budget.
 

See Agenda Items 7.1 and 7.2 for the Report

Public engagement is now closed. Thank you for providing feedback.

A What We Heard report summarizing feedback from the 2027-2030 Budget Engagement will be publicly available this fall.

The proposed 2027-2030 Budget will be presented to Council in November, and Council will deliberate on the budget in December 2026.

Decision-Making Timeline 

March - May 2026: Public Engagement 

• Public engagement activities conducted to inform the development of the 2027–2030 Budget
• Input collected through online and in-person methods

Fall 2026: Analysis and Preparation of Council Report 

• Engagement input analyzed and synthesized
• Key themes, considerations and implications identified
• Administration prepares a summary of findings to inform budget development

December 2026: Council Review and Deliberation 

• Council reviews the proposed 2027–2030 Budget
• Council considers public engagement findings alongside financial, operational, and strategic information

On March 17, Administration gave Council an update on City finances, sharing year-end results for 2025. The City shares regular updates on its finances three times a year to keep Council and Edmontonians informed on how the City is managing its finances.

The preliminary year-end results show a $31 million surplus, finishing the year less than 1% over the $3.8 billion operating budget for 2025.

This surplus is due to careful management and one-time savings. This is a positive step towards managing our budget challenges and a majority of these funds will be transferred into the Financial Stabilization Reserve (FSR). The FSR is currently under its minimum balance and it is a top priority that the City continues to replenish it as it is used to help offset one-time tax-supported deficits, emerging financial needs and unanticipated budget shortfalls. In 2024, Council approved a strategy to support reaching the minimum balance by 2028.

The majority of significant capital projects (over $20 million) are also progressing well, with 82% reporting within budget and 97% on schedule. The City strategically uses debt to advance large infrastructure projects, ending the 2025 fiscal year with $4.6 billion in outstanding debt and using 69% of the tax-supported debt-servicing limit. 

See Agenda Items 7.1 and 7.2 for the Report

Starting March 5, Administration will give department and branch presentations to Council. These presentations are part of an updated approach to building the next 4-year budget. They’ll give Council in-depth information, based on the current budget, to inform their decisions on the 2027-2030 budget. Council will debate and approve the new budget late this year.

Each presentation may cover a department or branch overview, funding model, costs, budget variances, staffing, deliverables, services and available audit information. 

Administration is working towards a new budget reporting process by the end of the 2027-2030 budget cycle that will track results and outcomes to assess the impact of decisions. Presentations will be delivered in the following order:

• Office of the City Manager
• Financial and Corporate Services
• Urban Planning and Economy
• Integrated Infrastructure Services
• City Operations - Fleet and Facility Services
• City Operations - Parks and Roads Services
• City Operations - Edmonton Transit Service
• Community Services - Edmonton Fire Rescue Services
• Community Services -  Social Development
• Community Services - Community Standards
• Community Services - Community Recreation and Culture

See Agenda for Department Presentations

On January 27, 2026, Council heard about 3 reports connected to the next 4-year budget:

1. 2027-2036 Capital Investment Outlook (CIO)
2. 2027-2036 Operating Investment Outlook (OIO)
3. Budget Planning Process

The CIO and the OIO are an important step in building the next 4-year budget because they give a long-term forecast of the City’s revenues, expenses, challenges and opportunities. 

The CIO is focused on the City’s renewal gap: 

• The City has $39.8 billion of infrastructure (such as fire halls, bridges, rec centres, roads, parks) and is facing a significant challenge to maintain it due to the growing number and age of its assets.
• There’s a $10 billion gap between available funding and what it would cost to maintain City infrastructure to its ideal level.
• This is a key challenge of a growing city. We’ll have to focus on using available funding to renew the most critical infrastructure projects.

The OIO shows the long-term budget cost of maintaining existing service levels as Edmonton grows: 

• This forecast for the operating budget shows it would take tax increases of 3.7-5.6% to maintain current service levels for a growing city.
• Administration will continue exploring ways to reduce operating costs and limit the tax increases needed to help pay for those costs.
• Given the significant reductions we've made in recent years, the City will need to focus on revenue generation strategies and service reductions in the next budget cycle. 

Council also heard about the process to develop the 2027-2030 budget this year. It will include regular check-ins with Council, in-depth presentations about City departments and extensive public engagement. 

Administration will present the recommended 4-year budgets this fall, and Council will deliberate and approve them late this year.