February 29, 2024
The City released its year-end financial results today, as well as an update on the process to adjust the operating budget this spring. The City’s preliminary results show a tax-supported operating deficit of $48.2 million in 2023, which is 1.8 per cent of the City’s $3 billion operating budget. Stacey Padbury, the Chief Financial Officer and Deputy City Manager of Financial and Corporate Services, issued the following statement on these reports:
“In 2023, a higher than anticipated arbitrated salary settlement and lower than anticipated franchise fees from ATCO Gas contributed to the budget deficit, but have now been baked into the operating budget and planned tax increases moving forward.
“While several unique pressures contributed to the deficit in 2023, other pressures, like lower transit fare revenues, reflect ongoing financial pressures that will need to be addressed in upcoming budget discussions. This means that we will need to make changes such as budget reallocation or we will continue to see budget shortfalls.
“The City typically manages within its operating budget and ends the year with a surplus, which we transfer to our Financial Stabilization Reserve to help us offset future one-time emergent financial pressures. This has been the case for 12 out of the last 15 years. We will need to tap into the reserve for 2023 and we will bring a plan forward later this year to replenish the reserve.
“The City’s regular financial updates are one of the ways that we keep Council and Edmontonians informed about our finances. They’re part of our commitment to transparency and responsible stewardship of public money.”
The City will present the year-end capital and operating financial updates, as well as an update on the spring operating budget adjustment process, during the City Council meeting on March 12 and 13.
