User fees quietly pushing Edmonton property taxes higher

Edmonton's rising property taxes aren't just inflation — city administration revealed Thursday that decades of user fees failing to keep pace with service costs are forcing taxpayers to pick up the difference.

Stacey Padbury, the city's corporate financial officer, told council's executive committee that user fees — from zoo parking to pool memberships to transit fares — have become so underpriced that the property tax levy has had to make up the gap.

The numbers tell the story. Property tax revenue grew 60 percent from 2016 to 2025, while Edmonton Transit revenue fell 18 percent over the same period. Recreation and attraction user fees rose just 22 percent. This mismatch forces higher property tax increases to balance the budget.

Over the past 25 years, the revenue mix has shifted dramatically: in 2000, the city collected 54 percent from non-tax sources (user fees, parking, recreation) and 46 percent from property tax. By 2025, those numbers flipped to 37 and 63 percent. The last time the split was even was 2007.

Padbury cautioned that raising user fees too high creates affordability barriers. The challenge is balancing financial sustainability with keeping city services accessible to all Edmontonians. She said a new corporate user fee policy is needed ahead of the 2027–2030 budget cycle.