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Mayor warns of 'scary' tax hike
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Think your property taxes are high now? You ain't seen nothing yet. ' l$ A9 _" N; f% b% F
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Edmontonians could face a "scary" tax hike of up to 10% next year, Mayor Stephen Mandel said. That would be the highest property tax increase since the 1980s. ! k) t( }( ? A; e: I% q3 y) G
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Mandel tossed out the figure yesterday following a presentation by administration that outlined the intense economic pressures the city is facing as a result of Alberta's economic boom.
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6 ]/ ]# ]/ m6 T& R& A"Looking at this we're talking an 8-10% tax increase," Mandel said in council chambers.
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3 M a* _# F3 P" h4 GCity manager Al Maurer confirmed that Mandel's prediction was on the money, based on initial cost estimates
& x* C& g! O3 P/ T"Given the amount of it, it's going to be scary," the mayor said.
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A hike in that range could cost the average homeowner up to $200 a year.
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"There's no question costs are going up," said Coun. Michael Phair, who conceded the tax hike "may very well" be in the range predicted by Mandel.
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Coun. Ron Hayter said it's still very early in the process, and he cautioned against getting overly anxious at this point. ( s) l! H' J/ D' x( m" F+ w+ L4 }7 i6 _
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The draft budget does not come out until November. . b: |1 e& W0 g7 s0 _ ]; N3 y
5 z. ~+ {8 d, N$ W. k"I'm not looking for a major increase next year, at least not too much more than we've already approved for this year," Hayter said.
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"It won't be as bad as some people are making it out."
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Maurer said income from investments and various financial strategies could offset a large hike.
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, T; m. p+ G+ y9 {However, he said there aren't really any city programs that could be cut in order to save a few bucks.
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"We've certainly got more demands," Maurer said, noting council still has to find money to fund an improved snow-clearing program. & Y I) E% `) T7 G! @
! B2 Y( J3 f* F, P2 P) h6 p& gScott Hennig, with the Canadian Taxpayers Federation, said there's no excuse for a double-digit tax increase. & Z0 C+ R$ ?/ l' ` v2 _- t, `
; j( o+ r6 V# o5 ^* ~9 Q) H4 OHe said hikes should be limited to inflation, which is pegged at 5% both this year and next, according to the city.
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"They're going to hear from a lot of angry taxpayers if they're looking at 10%," Hennig said.
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. k" b1 d0 a) h1 V' X7 {9 c- Z. F"I don't know what some of these members of council are going to be able to say to some pensioner who got a 2% hike in their pension."
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The average property tax bill in Edmonton will go up 4.95% this year, the city has said.
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The tax on homes will go up higher than average - about 7%. The figures include both municipal tax and the provincial education tax, which the city collects.
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. a% H" y. w& ?* w% _9 Q' E) K3 xTax bills will be mailed May 25 and payments are due June 30. |
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