(Watch: City Council is facing one of its toughest budgets in years. City Hall Reporter Vinesh Pratap sits down with Gord to talk about numbers and priorities.)
EDMONTON – Edmonton City Council is facing one of its toughest budgets in years.
Tuesday was the first chance for councillors to ask questions about the proposed annual financial game plan.
Global News is breaking down some of the basic elements of budget talks.
What is the capital budget debate all about?
The capital budget sets Edmonton’s infrastructure plan for the next four years.
The upcoming cycle will run from 2015 to 2018.
While it’s a blueprint of sorts, keep in mind, it can be altered.
One example from the current capital cycle is the downtown arena project, which was approved last year. Construction started earlier this year.
The upcoming capital budget proposes $4.3 billion in spending.
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One thing to remember, though, is that $1.6 billion has already been approved as a result of previous decisions from city council. The money is funding projects like Rogers Place, the Valley LRT line into Mill Woods and the Blatchford redevelopment on the old City Centre Airport lands.
Will the city take on more debt during the next capital budget cycle?
That is the recommendation from the city’s administration.
As of the end of last year, the city’s debt stood at $2.6 billion dollars. For any debt the city takes on, it’s mandated a repayment plan be in place. Debt is paid off either two ways: through property taxes or what’s described as self supported.
For the next capital budget, administration is recommending the city assume approximately $313 million in new tax-supported debt to build projects like a transit garage and an emergency operations centre. An additional $121 million is suggested be borrowed to pay for infrastructure improvements in the Quarters and downtown. The $121 million would be paid off through the Community Revitalization Levy’s in each area, making this specific debt self supported.
Will every project get funding?
No. City documents show a list of 157 projects that could potentially receive funding. City staff have a list of 17 projects for recommended funding, including the several mentioned above. This is where the real debate will happen at the council table.
A public hearing on the capital budget is scheduled for November 24th. Council deliberations begin two days later.
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