Mayor Amarjeet Sohi has launched a new campaign to ask Edmontonians to help him lobby the provincial government for more financial support for Alberta’s capital city.
“As you know, I have been advocating for a long time for Edmonton to be fairly compensated for the services we provide, and for other levels of government to do their part to support growth,” Sohi said at a news conference on Tuesday to unveil his office’s Fair Compensation Project website. “Edmontonians tell me that my message resonates with them, but I’m not seeing action fast enough from the province.”
The website, which Sohi said is being paid for by money already allocated to his office, includes links to news articles covering efforts by Edmonton city council and other municipal lawmakers to advocate for more fiscal support from the provincial government. It also includes a “take action” section that allows Edmontonians to digitally sign their name to a pre-written letter calling on the provincial government to reinstate a grant in its entirety that he says has essentially served to have the provincial government pay the equivalent of property taxes on its provincial buildings in the capital.
“To my fellow Edmontonians, I need your help to make sure the province hears our message,” Sohi said.
Sohi, who for months has called on the province to provide more financial support to Edmonton to help accommodate population growth and social services that he says fall under provincial jurisdiction, said the new initiative will highlight a number of areas in which the city would like to see more support from the province but that he wanted to begin with the longstanding grant that was slashed by 50 per cent once the United Conservatives first formed government in 2019.
In April, Sohi sent a letter to Premier Danielle Smith about the issue.
The press secretary for Municipal Affairs Minister Ric McIver said McIver met with Sohi to discuss his funding requests ” and committed to reviewing Grants in Place of Taxes (GIPOT) in Budget 2025.”
“After years of work with municipalities, Alberta’s government continues to implement the Local Government Fiscal Framework through Budget 2024 that provides stable, predictable funding for municipalities, including $337 million over two years for to the City of Edmonton,” Heather Jenkins said.
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“Budget 2024 is also supporting numerous capital projects in Edmonton, providing $2.2 billion over three years in road, transit, and bridge construction projects, and an additional $800 million over the next three years for health, school, and government facilities.”
Sohi said most people don’t have a choice not to pay their property taxes, but the Alberta government is “choosing not to pay their fair share.”
“Provincial buildings get the same quality municipal services that all buildings receive but they only pay half the cost,” Sohi said.
“The provincial government is asking other residents to cover their bill, even though they’re on track to post a $3-billion surplus this year. Since 2019, the City of Edmonton has been shortchanged by $80 million. Reinstating this grant in full would offer immediate financial stability to Edmonton.”
Sohi said conversations he had with other municipal leaders at last month’s Alberta Municipalities convention in Red Deer showed there is overwhelming support from municipalities that have provincial buildings to have the grant be fully reinstated.
“We have a very difficult budget ahead,” Sohi acknowledged as he spoke about the timing of the announcement, which comes ahead of fall budget talks.
Sohi noted the city is currently facing a possible need to raise property taxes by 13 per cent, a possibility he described as “absolutely unacceptable.”
“We need to minimize those tax increases,” he said. “(But) we can only do so much. … It’s not fair to other property owners.
“$80 million could eliminate the entire deficit that we have. Now we have to raise property taxes to pay the deficit because the province is not stepping up. Had they stepped up from 2019 and paid the full cost, we would not be in a deficit position. And moving forward, if they do continue to provide us full cost of services to provincial buildings, we can actually eliminate tax increases close to 0.8 per cent.”
papastew Coun. Michael Janz echoed Sohi’s point of view, saying Edmonton wants to be treated fairly.
“It’s a huge revenue hit to the city,” Janz said. “The fact that this has been going on since 2019, at a time when we’ve seen more and more demand for services for Edmonton, it’s just really, really unfair.
“We deserve a fair deal for our capital city. When I’ve talked to city councillors from other parts of Alberta, they agree too. The province should be paying their property tax.”
Sohi said Smith and other senior members of her government have told municipal leaders they have heard their message but still want “more information.”
“I am here today to provide that information again, as I have been doing over the past two years,” he said. “(This campaign) allows them to really show Edmontonians that they care for us, that they pay attention to our needs, that they will step up to ensure that Edmonton is fairly treated.
“I am always optimistic.”
In April, Edmonton city council approved budget adjustments that will result in an 8.9 per cent property tax hike in 2024. The increase was approved after city officials highlighted significant economic challenges facing the city, including higher-than-expected energy costs, labour costs and Workers’ Compensation Board insurance premiums. At the same time, officials said the city is receiving lower-than-expected revenue for gas franchise fees from the utility provider ATCO, from business licences and from transit fares.
–with files from Caley Gibson, Global News
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