City releases proposed fall budget adjustments |
November 20, 2025
City Administration released its fall budget adjustment reports today, which recommend a number of changes to maintain the planned 6.4 per cent property tax increase for 2026. The adjustments will allow the City to address budget challenges and continue delivering the 70 services and over 200 construction projects in the 2023-2026 budget.
“This recommended budget update is focused on delivering the services and construction projects that matter to Edmontonians,” said Stacey Padbury, Chief Financial Officer and Deputy City Manager of Financial and Corporate Services. “We’re recommending changes this fall to help us manage budget challenges and limit the impacts of those challenges on our services and the people we serve. We know many Edmontonians are worried about their own budgets.”
Since 2023, the City has made adjustments to the four-year budget in response to inflationary pressures, rapid population growth and changing service needs, which have made it more expensive to deliver the same services to Edmontonians. While the City planned for these pressures, they’re much bigger than what was forecast when the budget was developed in 2022. These challenges contributed to deficits in 2023 and 2024 and continue to impact City finances.
“For the past few years, we’ve been taking the fiscally responsible steps needed to bring the budget in line with the increasing cost of service delivery, ” said Padbury. “This work takes time and involves some tough choices, and while we expect these challenges to continue into the next four-year budget cycle, the changes we’ve made, along with our recommendations this fall, will put us in the best position possible as we wrap up this budget cycle.”
Administration’s recommended adjustments work within the planned budget increase, targeting $13 million in structural budget variances, which are specific services that are costing more or not taking in as much money as budgeted in 2022.
Updates include:
- Increasing budgets for some services that are consistently costing more, like animal care and control, spring street sweeping and vandalism repairs.
- Reducing other services to align with their current budgets, like bus and facility cleaning, to help limit the tax increase.
- Some changes to user fees in animal care and control, fire rescue services, land development and transit, to help the City to recover some of its higher costs from people who directly use those services.
- Some spending reductions across the corporation.
Administration is also recommending that $22 million in one-time revenues and savings be used to help restore the Financial Stabilization Reserve to its minimum threshold. The Financial Stabilization Reserve is used to offset one-time financial pressures, such as deficits. It was drawn below its minimum balance to address deficits in 2023 and 2024.
The reports also include proposed changes to the capital budget. The City is recommending a $98 million increase to advance several planned projects forward, including neighbourhood renewal work and fire stations, as well as some emerging work, including a roof replacement to preserve the historically protected Rossdale Power Plant and work to develop a new school site in Windermere. The increase represents less than one per cent of the $11 billion capital budget.
Alongside the fall budget adjustments, the City also released its annual update to the carbon budget. It’s an important tool to support Council’s decision-making on the capital and operating budgets. It also tracks progress on the City’s energy transition goals.
The reports will be presented to City Council on November 25, 2025. Council will decide on any budget adjustments from December 1 to 4, 2025. Edmontonians can view Administration’s recommended adjustments and learn more about the budget process at edmonton.ca/budget.
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For more information:
Media contact:
Mel Garcia
Communications Advisor
Financial and Corporate Services
780-686-2641
Lori Yanish
Director, Communications and Engagement
Financial and Corporate Services
780-554-3763
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