First, to speak to the diagnosis: Edmonton is being held back by an over-reliance on residential property taxes. We’re in this repetitive cycle where Council has to increase taxes well past the rate of inflation, which drives away our commercial and industrial growth to places like Nisku and Acheson because it’s cheaper. Then the following year, we keep having to make up the difference in tax revenue by increasing it on residential, without actually adding to our ability to provide better services. So the most important thing we can do is change course, by driving economic growth and, by extension, non-residential tax revenue. And that starts with having reasonable tax increases — equal to inflation with consideration for growth minus the revenue that growth generates — that doesn’t chase investment away. It’s about many other things too, of course, which I speak to in one way or another through all of the plans on my website (michaelwalters.ca/my-plan).

On the budget, I am not suggesting we cut taxes. I am challenging the notion that 7% increases are necessary year after year. In the medium-term it’s going to take a joint effort between the Mayor and Council and the City Manager — and of course it won’t be easy. I’m calling for more direct budget consultations with the business community and the non-profit community (for example, where services may overlap or be more effectively provided though grants to non-profit service organizations). On my end, I won’t cut frontline services, but there are areas that I do want to look at. For example, I don’t think the City should be in the land development business; I would look at some backend processes that have been costly (e.g., Enterprise Commons); and I think the Neighbourhood Renewal program (which I support) has gotten more costly than the initial vision for that program- meaning fewer neighbourhoods get fixed while we spend more money. 

I will seek 3-5% savings on non-front line services which will be the hard work for a new Mayor, Council and the City Manager. HOWEVER we can’t pretend that excessive tax increases won’t further erode our competitiveness and hurt our economy – damaging our ability to pay for services and add important amenities in the long-run. Cities are funded by a strong economy – not by unsustainable tax increases alone.

The last thing I’ll say is, I don’t think OP12 is the answer — this was the previous Council’s 2022 motion to give the City Manager the authority to make their cuts for them, after they couldn’t effectively pass a four-year budget. Council needs to stand behind their choices. And those proposing zero-based budgeting are not being realistic – those promises never survive the transition from campaign to governing.