Fall 2023 Supplemental Capital Budget Adjustment and Operating Budget Adjustments

Nov 17, 2023

To Mayor and City Council:

The Infill Development in Edmonton Association (IDEA) is an educational and advocacy nonprofit, non-partisan association that represents over 230 city builders and city shapers. Our purpose is to drive change toward people-centred communities within Edmonton's mature neighbourhoods. Many of our members are small and local businesses, passionate about executing Council's City Plan goals.

On behalf of our membership, IDEA would like to express our concerns and recommendations regarding the recent budget adjustments put forth by City Administration for the upcoming November budget review.

We acknowledge the complexities the City faces in responding to increased costs and reduced revenues to meet the commitments outlined in the 2023-2026 budget. However, we believe that the current budget recommendations may benefit from a more focused approach grounded in the direction provided by Council through the OP12 budget amendment to introduce operational measures aimed at reducing costs.

Our primary concern is with the  recommended 7.09% tax increase for 2024, exceeding the initially approved tax rate by 2.13%. This additional tax burden, combined with the current economic climate and rising property values, poses a significant challenge to housing affordability. Many Edmontonians raised concerns about  housing affordability during October’s public hearing on the new zoning bylaw. We believe City Council demonstrated strong leadership in passing the bylaw, anticipating more diverse affordable housing options in Edmonton’s mature neighbourhoods. As an association focused on infill development, we understand the importance of maintaining affordability in housing, and we believe that an excessive tax increase could undermine these efforts.

We urge City Council to reevaluate budget allocations to ensure a more focused approach aligned  with the strategic priorities set by OP12. It is important to recall that the direction of this amendment was to reduce operational spending by $15,000,000 on a multi-year basis over four years and return it to the tax levy. We recommend a thorough examination of each budgetary item to further identify potential areas for optimization and cost-saving measures without compromising essential services.

In summary, we appreciate the City's commitment to delivering essential services and critical capital projects. However, we believe that a more focused and strategic budget approach is necessary to address current financial challenges while preserving the affordability gains achieved through recent policy changes.

Thank you for considering our perspective on these matters. We look forward to continued collaboration with City Council to ensure a balanced and sustainable approach to budgeting that aligns with the needs and aspirations of the Edmonton community.