Budget and tax talks causing concern for Edmonton businesses

Edmonton’s business community are concerned with the city’s budget and tax increases. As budget deliberations continue at City Hall, the current estimated tax increase is sitting at approximately 5 per cent.

“I’ve spoken with businesses that are struggling and who are genuinely on the edge of being able to continue or not,” Anand Pye, executive director of NAIOP.

The head of Edmonton’s Commercial Real Estate Development Association says too much spending with minimal reductions will be harmful to Edmontonians.

“It could look like a 16 or higher per cent tax increase over four years up to much higher than that. That’s a major problem for homeowners, people on fixed incomes and businesses especially after covid when we’re looking for some relief right now,” explained Pye.

Edmonton Mayor Sohi has previously said he wants increases below the rate of inflation year over year.

“I am focused on business growth and making sure decisions we make are responsible decisions,” said Sohi.

Councillor Erin Rutherford saying, “For me, hypocrisy is problematic and I’m seeing a lot of the councillors that often talk about fiscal responsibility being the one’s not moving reductions but approving increases.”

RELATED:

• ‘Spending like a drunken sailor’: Mayor Sohi’s hot mic comment sparks concerns about budget decisions
• Edmonton police request $99M from city council for capital budget
• New task force setup by province aims to tackle social issues in Edmonton

Councillors have already increased spending in the capital budget, which covers things like new roads, new recreation centres, and LRT expansions with minimal cuts so far in the operating budget which includes the staffing and maintenance of those roads and buildings.

Councillor Rutherford proposed an unusual step, revisiting and already approved part of the budget.

“I would hope that if we are approving a bunch of operating amendments, that we reconsider capital.”

Mayor Sohi says there are options not discussed yet that could reduce taxes and points to a decision Tuesday — $60 million dollar cut over four years to city administration — as an example they are listening.

Sohi says this will not include cutting frontline workers.

“Edmontonians rely on services like fire, recreational facilities, public transit, and bylaw officers, those are critical and we need to provide them and make them better.”

The four-year budget is supposed to be finalized by Friday.