Sohi: Edmonton can close fiscal gap without sacrificing services

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I have always believed that strong cities are built on strong services. Like many Edmontonians, affordable and accessible city services have opened the door to opportunities throughout my life. Public transit, well-maintained roads, and reliable emergency services are the foundation of any thriving city. Libraries, recreation centres, and affordable housing — these are not just services; they are investments in our people, our economy, and our future.

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And our investments are working. Crime rates are falling, transit ridership is rising, more people are using our libraries and recreation centres than ever before, and we have exceeded our affordable housing targets. This year, we will finally meet our service standards for snow and ice control — a promise I am proud to deliver on.

Our commitment to anti-racism and reconciliation is building a more inclusive city, and our reinvestment in our valued city employees ensures we continue delivering the high-quality services you expect.

Over the past three years, your city council has been focused on investing in the services that matter most while being responsible with taxpayer dollars. We have increased funding for underfunded services, cut non-essential spending, found efficiencies, and managed inflationary pressures. But there is more work to be done.

Earlier this term, I requested that city administration provide a report outlining the structural fiscal challenges Edmonton is facing and, more importantly, the steps we can take to address them. These challenges are not unique to us; cities across the country are grappling with the same issues.

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However, what sets Edmonton apart is how we plan to confront them. Because Edmontonians do not shy away from challenging decisions. We meet them head-on.

Our city’s resources are strained. We are seeing unprecedented growth in our city that is stretching our ability to provide services, coupled with high inflation that is increasing costs. As a regional hub, Edmonton also provides services that extend far beyond our borders, yet we are not receiving fair compensation from the provincial government for this added responsibility.

We are doing our part; the province is not. Since 2019, provincial buildings have only covered half their share of grants that pay for municipal services they use, costing our city $80 million — a gap that would eliminate our deficit. More than that, we have experienced a 60-per-cent reduction in flexible infrastructure funding from the province. These are serious financial pressures, but they are not insurmountable.

We are taking concrete steps to ensure Edmonton remains financially sustainable. During previous financial reviews, I identified several areas where we can be more efficient with our resources, and I have already asked city administration to create a robust action plan to explore those opportunities.

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Last week, city administration delivered the Fiscal Gap report I asked for, highlighting both challenges and opportunities for our financial planning. The report emphasizes that we have worked hard to build new infrastructure, and now we should shift to renewing what we already have. It also underscored that we are too dependent on residential property taxes, which is why we are actively exploring new revenue streams to reduce this burden on Edmontonians.

We need to address the financial challenges facing our city: population growth, inflation, and rising labour costs. I am confident that we can streamline our operations and deliver better value to Edmontonians without sacrificing the services you rely on.

Let me be clear: We cannot afford to go back to the days of austerity that left our core services underfunded and our city struggling to keep up.

We are not going backwards. We are moving forward with a clear, determined plan to build an Edmonton that thrives today and for future generations. These investments are much more than lines on a balance sheet; they are the foundation of a resilient, vibrant and growing city. I will continue working with my council colleagues and city administration to ensure your money is managed responsibly.

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Together, we will build an Edmonton that supports every resident, now and in the future. An Edmonton for all of us.

Amarjeet Sohi is the mayor of Edmonton.