Edmonton council approves zero tax increase next year

Edmonton property owners will pay the same rate of tax in 2021 after council approved the revised operating and capital budgets Friday.

Council agreed 12-1 to the revised budgets with Mike Nickel voting against the $3-billion 2021 operating budget and $7.4-billion 2019-2022 capital budget.

Nickel had been arguing for a decrease in the tax rate for next yearbut the other councillorsand Mayor Don Iveson were dedicated to a zero per cent increase the first one since 1997.

"Property tax doesn't distinguish how people are doing, but we know people are hurting and that's why zero per cent is the right thing to do," Iveson said.

In the spring, council had approved a 3.2 per cent increase for 2021 but reevaluated after the COVID-19 pandemic hit.

A zero per cent tax increase means the owner of a home estimated at $387,000 willpay about$3,609 in property taxes. Property values are adjusted every year.

Council made several adjustments to city administration's proposed budgets, finding$57 million worth of savings and cuts.

3 pools, 2 arenas

Council agreed to keep funding for Scona, Eastglen and Oliver pools, as well as Oliver and Tipton arenas.

Closing them would have saved $1.2 million in operating costs.

Council had heard from many residents over the past few years about the importance of keeping community recreation centres.

Council also put money back in for a spay-and-neuter program and the city's Green Shacks program for youth,each costing$100,000.

Cut positions

Administration had pinpointed savings of $18.2 million in "workforce strategies," which included leaving vacant positions unfilled, reducing overtime and consolidating work.

About 313 full-time equivalent positions will be cut, with 63 per cent of those positions are already vacant.

Interim city manager AdamLaughlin said 37 per cent of the positions will be eliminated.

"The work of every City of Edmonton employee is important and adds significant value to Edmontonians," Laughlin said during a news conference Friday afternoon.

"Any reductions, whether they are staffing or service reductions, will be a loss to someone in our community. This was hard work."

Iveson calledit an unusual year and reducing staffing in the future is not realistic.

"We're losing a lot of institutional memory and expertise in this staffing reduction," Iveson said.

Service cuts

The budget includes cutting or reducing services in several areas.

It includes reducing transit peace officers in providing neighbourhood services,professional standards oversight, municipal enforcementand administrative support.

The Borden Park, Fred BroadstockandQueen Elizabeth outdoor pools will be closed in May and June, open only for the summer.

Previously city-fundedNew Year's Eveand Canada Day events at city hall will be eliminated next year but fireworks are expected to go on.

In other areas, the Edmonton Public Library agreed to do with less, saving another$1.2 million.

Iveson said the city reviewed all its services and programs to come up with the savings.

"A lot of nips and tucks and optimizations, most of which the public likely won't see."

Transit fares

Council agreed to postpone raising single cash transit fares from $3.50 to $3.75until May.

The city had planned to raisefares, including monthly and annual passes, in February, estimating it would generate an extra$2.7 million.

In delaying the single cash fare increase, they estimate taking in $2.5 million.

Adult passes will still go up to $100 from the current $97.

Coun. Aaron Paquetteasked council to delay all transit fare increases, including passes, noting that many people still taking transit are working in essential services and health care.

"These are the folks that we are calling heroes and now theyget to pay for the privilege of just a little bit extra more," Paquette said.

"Symbolically, it'sI thinka terrible move."

Transit ridership is below 50 per cent of what it wasbefore COVID-19.

The estimates on transit revenue were done before the pandemic, Paquetteadded, making them unreliable.

@natashariebe