Budget Frequently Asked Questions (FAQ)

In 2018, when approving the original 2019-2022 4-year operating budget, Council approved tax increases of 2.6% for each year of the budget. In light of the pandemic and the current economic landscape, Council subsequently adjusted the budgets resulting in a 0% tax increase in 2021 and a reasonable 1.9% tax increase in 2022. The 2022 tax increase is lower than what was originally approved and is lower than inflation. This increase puts the City in a strong position to respond to the financial uncertainty caused by the pandemic, results in no unintended decreases to existing programs and services, and allows the City to be able to manage its capital plan for 2022. This is also one of the lowest increases among major Canadian cities.

For more information, visit 2022 Budget Highlights .

COVID has had a significant impact on our revenue sources, including transit, and community and recreation facility revenues, and has also resulted in increased costs for things like personal protective equipment (PPE) and enhanced cleaning. 

The estimated budget impact of the pandemic in 2020, 2021 and 2022 has been $152.9 million, $152.0 million and $96.7 million respectively. The pandemic has had a combined total budget impact on the City of just over $400 million. This is one of the most significant impacts on the City’s operating budget in recent history.
 
The City respects the value of Edmontonians’ tax dollars and the financial challenges faced by many residents, so Administration has worked hard to keep the property tax levy low over the past 2 years and look at other ways to manage the financial impacts of COVID-19 on the budget.   

The City has been managing the impacts of COVID through management of its expenditures, using support from other levels of government, and drawing funds from reserves, including those that are used to fund the capital program. Although taxes have not been raised, managing the impacts of COVID comes at a cost. 

The City realizes that the pandemic will likely have permanent impacts to the way people use and interact with City services, which will mean permanent impacts to the City’s operating budget. The City plans to address them in the 2023-2026 budget, when we have a better understanding of the long-term impact of COVID on things like transit ridership and recreation facility attendance.

The budget is the City’s plan for where it will get money (revenues) and how it will spend it (expenditures)  in alignment with our long-term vision.

The City budgets in 4-year cycles, with the next cycle running from 2023-2026. This longer view makes it easier to plan stable programs and services, and move our plans forward to build and maintain things like LRT, recreation centres and roads. It also gives Edmontonians a better sense of what to expect with property taxes. 

The budget is reviewed and adjusted each year, as needed. 

The budget has two main parts: the operating budget and the capital budget. There are also separate budgets for public utilities: Waste Services and the Blatchford Utility.

The operating budget reflects the estimated cost for the City to provide programs and services, and the way in which those costs will be paid for, including property taxes and user fees.

Examples of these programs and services are:

• Maintaining the roads and public transit systems that move people
• Police, bylaws and fire rescue services to keep people safe
• Parks, waste management and drainage to keep the city clean and healthy
• Social programs and leisure activities that make Edmonton a great place to live, work and visit

The capital budget is for the things the City builds. It pays for building and maintaining infrastructure.

Examples are:

• Roads
• Bridges
• LRT
• Recreation centres
• Fire halls
• Police stations
• Libraries

The City has 2 budgets for public utilities: one for Waste Services and one for Blatchford Renewable Energy. 

Monthly utility rates (and not property taxes) pay for all residential waste services, including:

• Garbage collection
• Blue bag and blue bin recycling
• Recycling depots
• Reuse Centre
• Eco stations
• Big Bin events
• Assisted waste collection

Blatchford Renewable Energy charges a customer rate as well, including a component to cover operating costs and infrastructure.

Blatchford Renewable Energy owns and operates the Blatchford community’s District Energy Sharing System (DESS). This system will provide heating, cooling and hot water services to Blatchford residents and businesses through monthly utility rates.

The City has over 70 services and programs. Each business area looks at what money they think they’ll need over the next 4 years in order to deliver on their programs and services, and move construction projects forward.

Then, the City looks at what it can afford, and prioritizes the needs of each business area based on what’s absolutely necessary and how it aligns with our strategic long-term vision.

There are a lot of other factors that go into decision-making about the budget. The City also looks at the economy, the state of our savings and investments, anticipated funding from other orders of government and our financial forecasts for the next 10 years. 

We also seek a lot of input from City Council and Edmontonians.  

For the 2023-2026 budget, all of these pieces will come together in 2 documents:

• The Corporate Business Plan, a 4-year plan that moves us towards our strategic goals. 
• The Budget, the 4-year plan for how we’ll use available resources for our business plan over the next four years.

City Administration presents these documents to City Council, followed by public hearings and debates. Council makes adjustments and finally—Council approves it. Budget approval must happen before December 31 each year (it's the law in Alberta).

For more information, visit Budget Process and Financial Strategy.

The City budgets in 4-year cycles. This long view makes it easier to plan stable programs and services, and move our plans forward to build and maintain things like LRT, rec centres and roads, all in alignment with our long-term strategic plans. It also gives Edmontonians a better sense of what to expect with property taxes.  

The 2022 budget was set in 2018 as part of a 4-year budget, which the City reviews and adjusts every year. Council will consider the 2023-2026 budget next fall.

Multi-year budgets typically need adjustments so the City can respond to any changes that happened since the 4-year budget was set, including:

• Changes in external factors such as provincial or federal budgets or legislation
• Adjustments for operating impacts of capital
• Unforeseen changes to economic forecasts
• Council-directed changes 

Twice a year, Administration brings forward the Supplemental Operating Budget Adjustment (SOBA) and Supplemental Capital Budget Adjustment (SCBA). Council also approves adjustments to the Waste Services and Blatchford Renewable Energy operating budgets in separate reports to Utility Committee. Through these reports, Council can make changes without revisiting the 4-year budgets as a whole. 

The fall supplemental operating budget adjustment process is used to make ongoing adjustments to the budget in advance of the budget year. The spring supplemental operating budget adjustment is more restrictive, and is used to respond to the release of the provincial and federal budgets, and deal with any emerging items before finalizing the property tax levy.

The City’s operating and capital budgets plan for investment in programs, services and infrastructure over 4 years. This means keeping the lights on, plowing snow, and building sidewalks and bridges. Administration reports to Council 3 times a year through the financial updates on how operating and capital project spending compares to those plans, including where the City will be at the end of the year. 

The capital financial update also provides updates on major capital projects as well as on the City’s debt position. The operating financial update also provides an update on the City’s larger reserves and an update on the economy.

Knowing the current state of City spending against the operating and capital budgets can help Council make choices about where to stay the course in the previously approved 4-year budgets and what to change in the budget for the current year. 

The Budget Non-Statutory Public Hearing is typically held in November or December. These annual hearings are a chance for residents to speak directly with Council about the budget.

This isn’t the only way Edmontonians influence the budget. From electing a representative to Council to speaking at regular public hearings, attending public engagement events, participating in surveys, or reaching out to Council and Administration directly, Edmontonians speak up all year about what matters most to them and where tax dollars should go. 

There are limits to what cities can afford to provide. Setting or adjusting a budget is about making choices. 

When it comes to making decisions about Edmonton’s future, everything flows from the City Plan. It reflects Council’s vision, which in turn comes from intensive public engagement. Our budgets show how we will shape and direct our work to bring the City Plan to life. The City Plan’s priorities should be clearly reflected in where we’ve placed our resources, from dollars and cents to the staff, programs and infrastructure they fund.

That’s easy to say, but prioritizing over 70 services and all the work the City does is a complex task. Council will factor in social and safety considerations; impact to the economy and the environment; potential savings and risks; demand for services and the level of service now available; and public feedback of all kinds. Sometimes Council acts to take advantage of limited-time grants from the provincial or federal governments and/or debt at low rates that are locked in for the term of the borrowing to advance key transformational projects, like LRT expansion.

For ongoing projects or services that may need to be adjusted, Council will look at costs versus savings of every decision, as well as the impact on Edmontonians who rely on a service, or who are looking forward to the benefits of the project once it’s complete.