Shifting gears

Edmonton, Alberta — With city council set to vote next week on the City of Edmonton’s proposed budget adjustments, a timely new report from Parkland Institute is drawing attention to the systemic financial pressures facing the city — and offering actionable solutions to tackle these issues. Authored by Inez Hillel, the report — Shifting Gears: Exploring Edmonton’s Financial and Political Pressures and Ways Forward — reveals the far-reaching effects of reduced provincial funding, growing social service demands, and limitations within current municipal governance.

The report argues that Edmonton needs innovative solutions and stronger intergovernmental relationships to ensure the provision of services and infrastructure that address the multiple crises facing the city. It calls on municipal policymakers to re-evaluate spending priorities and advocate for reforms to the Municipal Government Act, which currently limits Edmonton’s ability to diversify its revenue sources. The report also stresses the importance of improved transparency and worker involvement in decision-making to foster efficiency and rebuild trust.

One of the issues addressed in the report is Edmonton’s urban sprawl, which has significantly increased the demand for infrastructure and services, stretching municipal budgets to cover costly expansions. To build a more resilient future, Shifting Gears recommends favouring densification over sprawl, calling for a “substantial completion” standard for new developments, which would require that new areas meet certain infrastructure and service benchmarks before further expansion is permitted.

Shifting Gears offers key insights and actionable recommendations to guide Edmonton through its financial challenges. A roadmap for addressing Edmonton's complex financial challenges, the report’s recommendations focus on creating a more sustainable, resilient, and equitable fiscal foundation for the city, guided by insights from stakeholders across Edmonton’s civic landscape. That includes a policy shift that reevaluates the city’s spending on reactive services and considers evidence-based programs that address the root causes of social issues such as homelessness, addiction, and public health crises.

The report emphasizes that Edmonton’s financial struggles, while significant, are not impossible to overcome. By pushing for legislative reform, smarter spending priorities, and greater transparency, the city can create a more stable and resilient future. "Edmontonians should not be made to believe that better is out of reach,” says Inez Hillel. “Through a combination of increased public funding, care-oriented responses, and long-term (rather than reactive) approaches, Edmonton can work to build a city that is safe, inclusive, and supportive for all residents.”

Summary of Recommendations

The report recommendations summarized below are designed to address immediate financial pressures while laying the groundwork for a more sustainable future for Edmonton.

1. Advocate for provincial reforms to the Municipal Government Act. By exploring the potential benefits of new tax streams, such as progressive property taxes, the municipality could reduce its reliance on provincial funding and gain greater control over its financial planning. Implementing these changes will require direct advocacy with the province to reform the Municipal Government Act.
   
   
2. Require substantial completion to slow urban sprawl. Density must be prioritized over sprawl for the City of Edmonton to meet the goals laid out in the city plan. Population growth and the resulting demand for housing can be addressed by densifying mature neighbourhoods, where infrastructure such as transit, libraries, recreation centers, and fire halls are already built.
   
   
3. Create pathways for city workers to identify potential efficiencies. City workers have first-hand knowledge of what changes can be made at the city level to increase efficiency and cut costs. Moving away from a top-down management approach and recognizing the expertise that city workers have in their respective areas of work would improve decision-making while effectively empowering city workers.
   
   
4. Improve transparency by increasing workers’ and the public’s access to information. The choices the municipality makes have a direct impact on the lives of Edmontonians. Ensuring that the necessary information is made publicly available and accessible is crucial to building a city with engaged residents, where people have the tools they need to fully participate across political spheres.
   
   
5. Be intentional about the long-term impacts of how the city communicates information to the public. A municipal government is the most accessible level of government, meaning it will likely engage residents directly on issues that may be beyond its scope. Merely shifting the blame to other levels of government does little to incentivize residents to engage with the politics that directly shape their lives.
   
   
6. Interrogate the logics that underlie the city’s current spending priorities. Spending choices that do not align with evidence-based decision-making should be questioned, even if they reflect long-standing norms in the city’s operations. The City of Edmonton needs to put meaningful action behind its vibrant strategic visions, like Vision 2050.
   
   
7. Prioritize rebuilding the relationship between city management and city workers. The antagonistic relationships between the city and the province negatively impact other relationships, including between city administration and city workers. Strong relationships between city management and city workers will be key to harnessing labour expertise to address pressing issues in Edmonton.
   
   
8. Harness labour power toward broader solidarity goals. Organized labour has significant potential to advance evidence-based social policy by pressuring municipal, provincial, and federal governments to address residents’ unmet material needs through broad solidarity.

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For the full report, visit https://www.parklandinstitute.ca/shifting_gears

For more information or to arrange an interview, please contact:
Rita Espeschit
Parkland Institute Communications Coordinator
[email protected]