Edmonton is building another new transit garage, this time in the southeast part of the city. The facility was originally projected to cost $367 million and accommodate 430 buses. However, columnist Lorne Gunter suggests that the city can reduce expenses by scaling back the project's capacity and design, given a history of cost overruns on municipal projects.
Tax Increases and Council Decisions
City council recently approved a 6.9 percent residential tax increase, consistent with plans made in December. Gunter criticizes council for consistently approving tax hikes, often exceeding initial promises. For instance, the four-year budget cycle initially promised three years of nearly five percent increases followed by a 4.4 percent rise in the fourth year. Instead, actual increases were 5 percent in 2023, 8.9 percent, 5.7 percent, and now 6.9 percent. For a typical Edmonton home worth under $500,000, the total tax bill rises by about $300 this year.
Questioning Spending Priorities
Gunter argues that council and administration present annual increases as minor, claiming funds support city services, parks, trails, roads, transit, and attractions. He questions why these are highlighted, as tax revenues are always used for such purposes. When tax hikes exceed average family income growth, he contends, council assumes it knows better than families how to spend money, especially ironic given that three-quarters of council, including Mayor Andrew Knack, received support from the union-backed Working Families Edmonton. Their decisions, he says, leave working families with less for groceries, gas, clothing, recreation, and kids' sports fees.
The Southeast Transit Garage Example
Gunter focuses on the southeast transit garage as a symbol of spending issues. Originally costing $367 million for 430 buses, the price seems excessive compared to the combined cost of the city's other two major bus barns, Kathleen Andrews and Centennial. He attributes this to a habit of overdesigning projects and struggling to stay on budget, citing examples like the Lewis Farms recreation centre ($32 million over budget despite cancelled amenities), the Edmonton Police Service northwest campus (nearly 20 percent over budget), and the Quarters development east of Downtown (a $64 million shortfall).
The administration proposed keeping costs at existing levels by reducing the garage's bus capacity to between 255 and 290. However, transit advocates on council have opposed this scaling back. Gunter implies that such opposition contributes to ongoing tax spirals and suggests that Edmonton can cut costs by accepting a smaller, more affordable facility.
