Council Directs 'Find Budget Efficiencies and Reallocate Resources to Core Services & Priority Areas': Status Update

Edmontonians deserve to see their tax dollars hard at work.

The reality is that our City, like many municipalities, faces significant financial pressures due steep inflation, reduced funding from the provincial government, shouldering the cost burdens related to decades of urban sprawl, and previous Council’s decisions that did not keep up with growth - all contributing to tax increases in the 2023-2026 budgets.

In combination with this, I recognize the importance of also needing to look internally for efficiency and to reallocate resources to where Edmontonians need services the most. 

As a City, we need to provide public services and programs that Edmontonians rely on while continuing to find ways to operate more efficiently and effectively.

Here is a breakdown of how operational dollars are currently spent: 

Or put another way, a breakdown in value per day:

During the 4-year budget deliberations, City Council passed a motion (dubbed as OP-12 due to it being Operations Budget Amendment #12) to have City Administration do 2 things: 

1) Find $60 million in internal savings from 2023-2026 (or $15 million each year), and 

2) Shift $240 million internally towards City priorities (such as core services - like snow removal, housing, public transit and climate action).

Administration is using methodology for future decisions that reviews all lines of business and sub-services with criteria that will identify define core services including: 

• Is the service required under legislation? 

• Is it identified as a City priority? 

• Is it within municipal jurisdiction?

• Other considerations include: 

• What is the reliance on the municipality for the service?

• What is the demand for a service?

• How much of the population is served?

• What is the benefit to the community or organization?

City Administration will continue to present regular public updates to Council on progress and proposed transitions of resources throughout 2023. For example, it was recently announced that the number of Deputy City Managers is being reduced from 7 to 5. 

I want to thank everyone who’s shared feedback with me, whether it was through my budget survey and the engagement sessions last year, or via emails and community meetings. Based on what I’ve heard, I brought forward suggestions to the City Manager on suggested efficiencies to the rest of Council and City Administration.

As further actions are brought forward by Administration, I’m committed to keeping you informed and to hearing your feedback!