After city councillors approved a 3.2 per cent property tax increase in Edmonton’s 2018 budget on Thursday, the mayor said he is happy with how the spending plan will balance the city’s priorities.
“I’m pleased that council unanimously passed a budget that supports both commitments to existing services and neighbourhood renewal as well as future urban planning and economic development,” Don Iveson said in a news release. “After years of having portions of tax increases go towards neighbourhood renewal to catch up with the need to invest in our aging infrastructure, I am confident that future year tax increases will be in line with inflation.”
The property tax increase amounts to a $77 hike for the average tax assessment for a home with an assessed value of $397,000. While the increase is higher than last year’s 2.8 per cent hike, it’s still less than the previously anticipated 3.6 per cent increase.
READ MORE: Edmonton property tax hike set at 3.2% for 2018
According to the city, the Neighbourhood Renewal Program will be fully funded by the end of 2018 and will no longer need to be paid for through property taxes, which it was for the past decade. The program is aimed at repairing roads, sidewalks and streetlights in city neighbourhoods.
The 2018 supplementary operating budget adjustment also saw council approve $12.2 million for new endeavours like the Health City and turf maintenance initiatives.
Health City is a plan to begin positioning the city to become a leader in health-care innovation. The idea revolves around increasing the number of health-technology companies relocating, staying or doing business in Edmonton.
READ MORE: Health City aims to make Edmonton a leader in health care
The turf maintenance initiative is aimed at making sure the most up-to-date technology is used to improve 4,100 hectares of green space while also respecting the environment.
The city said employees identified $47.5 million in savings for the 2018 budget, $9.6 million of which council used to lower the base budget. The city also reinvested $27.9 million into existing programs and services, and reallocated $10 million to “areas of greater priority.”
For the second year in a row, city managers won’t be getting cost-of-living increases resulting in $4.7 million in savings. Other savings came from 35.2 vacant full-time equivalent positions being permanently taken off the budget.
READ MORE: Edmonton to spend $3M more on controlling dandelions in 2018
On Thursday councillors also approved a $1.4-billion capital budget for 2018 projects, including new fire stations, library upgrades, a police division and transit garage, along with other infrastructure.
The city’s annual operating budget is approximately $2.7 billion.
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