Here’s what’s in Edmonton’s 2025 budget

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City council will debate Edmonton’s municipal budget this month and set the property tax increase for next year.

Administrative staff released drafts of the operating and capital budgets on Thursday. Council will need to decide whether to accept the recommendations with an 8.1 per cent property tax increase, cut services to keep the rate lower, or add new programs that will increase the rate.

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Here’s what’s proposed for next year.

Most services will be the same

Just as Edmontonians are experiencing rising costs in their daily lives, the City of Edmonton says the same is true for the municipality.

There isn’t much new in this budget.

Most of the increase, according to the city, simply covers rising costs to keep a similar level of service across all the different city departments, such as filling potholes, snow removal, public transit and parks and recreation. After years of lower increases despite inflation, and with rising population, the city says there’s a higher demand for existing programs.

City officials reviewed all the departments and looked for places to potentially find savings, hoping to set the right balance between higher costs and cuts to programs, budget documents say.

A large portion of the operating budget pays for salaries — about half of the approximately $3.7-billion operating budget. Many city employees saw increases this year after settling long-standing labour disputes. Related costs include about $5.2 million more for employee benefits premiums and $1.5 million toward paying higher Workers’ Compensation Board premiums.

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Neighbourhood renewal, Terwillegar Drive expansion

Most of the $151 million added to the city’s capital budget is earmarked for projects that were already approved at various stages. While property taxes don’t pay for capital projects directly, public dollars make payments on the debt borrowed for construction.

The largest capital budget top-up, $87.4 million, will continue the long-standing neighbourhood renewal program. Funds are being shifted from a dedicated reserve toward neighbourhood reconstruction in Overlanders and Homesteader, and for both neighbourhood and alley renewal in Hillview and Glenwood.

The second-most expensive item is the increase in costs to expand Terwillegar Drive expressway — $41 million, but this will be paid for with a provincial grant.

What is new, however, is $22.7 million for renovations to buildings where city employees work. The city is planning to close its offices in Chancery Hall and Century Place and sell the buildings. But before doing so, they will need to renovate existing city facilities to accommodate the people being relocated. The city expects to pay off the renovations down the road with the proceeds of the land sales.

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Costly elections, fuel, building maintenance

One significant unexpected cost will be next year’s municipal election.

New rules legislated by the Alberta government this year will cost about $3.1 million for the city to implement for the October 2025 election, a budget report states. Costs are driven by rules that prevent using electronic vote-counting machines, or tabulators, meaning the city will need to hire more people to count ballots by hand. Keeping a permanent electors list and tracking new campaign financing requirements are also adding to the bill.

Keeping vehicles running and buildings open is also a growing expense.

Fuel and maintenance for buses, snow plows and other city vehicles, and buildings, will cost about $19.7 million more in 2025, administrative staff are projecting. Budget documents say without this increase some Edmonton Transit Buses (ETS) buses could be grounded and put out of service at a time where ridership levels are reaching a high point.

There’s also another $871,000 to maintain community and recreation facilities.

Fixing asphalt and concrete broken for utilities

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Adding $2 million to repair roads and sidewalks broken by installing utilities is part of the plan.

This program was paused in 2020 and eliminated in 2021, but the work continued by pulling in resources from other programs. The draft budget asks for money specific to this work, so staff aren’t taken away from their other duties: filling potholes and snow and ice removal.

There’s also $2.7 million for technology and software licensing and maintenance, $450,000 to do sweeps of bird nests before and after turf and horticultural season, and $500,000 for parking enforcement contract costs.

As well, the city needs to fill a $1.3-million hole for lost rent from selling off city-owned properties which will, over time, save money.

Theatre and policing

One cost city council already agreed to take on is operating Citadel Theatre. The building’s lease expired this year and the city will cover the $1.4 million needed to keep the building open next year. The cost of operating the Orange Hub is also up $320,000.

There are also one-time costs for renaming Oliver to Wîhkwêntôwin for about $500,000, also approved by council.

Edmonton Police Service (EPS) will get an increase in 2025 as well — $880,000. The increase is automatic, set by the council-approved funding formula. There’s a much bigger increase set for 2026 of $7 million.

City policy requires that police funding not make up more than 30 per cent of the total civic spending. For 2025, EPS funding will account for 28.3 per cent, and 29.5 per cent in 2026.

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@laurby

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