City council edges closer to potential tax increase as debates continue on budget spending, cuts

As city council gets closer to setting the 2026 budget, spending has been approved on items that could shift a 6.4 per cent property tax hike to 6.9 per cent.

Edmonton city councillors are getting closer to an almost seven-per-cent property tax rate for 2026, an increase from the previously set 6.4 per cent, as the third day of budget debates saw approvals for around $16.3 million in spending on operating services.

That number includes a one-time, $11-million payment to city tourism organization Explore Edmonton, borrowed from the tax levy. Council estimated that funding would increase the property tax rate by about 0.5 per cent.

Council also unanimously approved almost $3 million toward the city’s Dedicated Accessible Transit Service (DATS) on top of a couple of other upgrades to custodial living wages, the River Valley Trail strategy and Whitemud Drive upgrades.

Mayor Andrew Knack told media on Wednesday that the approved spending so far was meant to keep up with growth in the city, as part of structural budget variances that needed to be plugged in order to keep up with the quality of service.

• Get the latest Edmonton updates right to your inbox

“The DATS funding, if that wasn’t approved, the system would get worse,” he said. “Now that ridership is at an all-time high for DATS … not approving that funding would have resulted in a service level decrease for people using DATS and that was unacceptable.”

On Monday, Knack said council was aiming to keep the proposed tax hike at a maximum of 6.4 per cent, or around a $230 increase per homeowner.

Ward Karhiio Coun. Keren Tang said council was reluctant to touch that number amid clear voices from Edmontonians that anything above 6.4 per cent would be met with frustration.

“I’m frustrated as well,” she told CTV News Edmonton. “But I also think this is the last year of a four-year budget cycle … This year, we’re really looking at the most critical pieces.

“It went above my threshold of tolerance, but I look at it as an investment to stimulate economic gain.”

And while councillors have debated several proposed cuts to trim or maintain that number all week, only one has gotten through so far on the operating side of the budget: $440,000 in savings from cuts to the Old Strathcona Public Realm Reserve.

More proposed spending is still on the table for Thursday, including $6 million for more peace officers, $500,000 for an infill liaison team, and $3 million for enhanced bus and transit cleaning.

Council will set the final 2026 property tax rate for Edmontonians on Thursday after budget debates have finished.

With files from CTV News Edmonton’s Jeremy Thompson