Council Votes to Expand Transit Garage Despite $66M Debt

Edmonton city council narrowly voted to build a larger transit garage and take on $66 million in extra debt to do it.

The decision came Wednesday during a multiday budget adjustment. Council voted 7–6 to scale the project back up after city staff had recommended shrinking it to keep costs down.

The original garage was designed to hold 430 buses. In April, administration proposed cutting that to 250–290 buses to stay within the $367 million budget. But councillors worried a smaller facility would fill up too quickly, forcing the next council to immediately begin building a replacement.

The new plan will store 330 to 380 buses. A federal grant will cover part of construction, which should wrap up in 2032.

Coun. Aaron Paquette argued the investment is necessary now. "When we talk about affordability and long-term planning, we have to mean it," he said. "We never thank past councils for shortchanging the future."

The decision reflects a broader transit crisis. More than half of Edmonton's bus fleet is in poor or very poor condition. City staff says the system needs 75 replacement buses each year to address aging vehicles, plus 100 more buses to meet 2026 service standards. A standard diesel bus costs roughly $1 million.

Coun. Erin Rutherford warned the larger garage could squeeze other projects, like the metro line extension. "We don't have an infinite pool of funding," she said. She also worried the new facility might sit half-full.

Mayor Andrew Knack struck a more optimistic tone, saying he hopes federal and provincial funding will improve in coming years, allowing the city to tackle transit and other priorities without forced trade-offs.

One federal grant requirement: Edmonton must buy 10 zero-emission buses. They'll join the city's existing Proterra electric fleet, which has faced reliability problems since the manufacturer went bankrupt, limiting parts availability.