Edmonton facing projected deficit according to recent budget talks
Posted September 13, 2023 5:22 pm.
Tough financial times are ahead for the City of Edmonton.
The City is facing a projected deficit of nearly $73.9 million, according to recent information presented to city council on Wednesday.
While inflation has played a factor in higher than expected spending, the city says salary settlements, including back pay to Edmonton police at $43 million.
In addition transit is also costing more, while ridership is back to pre-pandemic levels. However, more people riding qualify for low income supports, as well as the need for more unbudgeted safety and cleaning measures.
Administration admitting, the current tax increases do not cover inflation and population growth.
The mayor saying tough decisions are ahead.
Money has been taken out of city reserves to pay for the shortfall, which will push the City outside the comfortable limits.
Budget talks resume in November, with the four year budget already projecting property tax increase of at least 4.9 per cent for 2024.
