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Mayor warns of 'scary' tax hike; l4 C* u) x. }+ ?
% ?2 v' U3 i* z/ PThink your property taxes are high now? You ain't seen nothing yet. $ V* }2 a1 _7 l u
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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.
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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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! M9 l/ v; A6 N9 G3 K"Looking at this we're talking an 8-10% tax increase," Mandel said in council chambers.
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3 |* M+ |: g3 Z1 I* dCity manager Al Maurer confirmed that Mandel's prediction was on the money, based on initial cost estimates' x% x9 R2 Q9 T$ M+ q
"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 $200 a year.
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6 ~5 Y8 F3 a. t( ~7 S r0 q"There's no question costs are going up," said Coun. Michael Phair, who conceded the tax hike "may very well" be in the range predicted by Mandel. ' Q) S, m$ ]1 U% Q3 E! Q7 U
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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. 8 S6 s: x4 ^: |7 C2 @0 `( n
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The draft budget does not come out until November.
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2 d& ^1 K2 j( B& |2 `"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. % x( r: ^, o4 L* M# X4 D
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"It won't be as bad as some people are making it out." 6 ]7 h& V/ X- n8 ~; J
8 g8 Z5 o! h3 ~( A# o8 X* O+ VMaurer said income from investments and various financial strategies could offset a large hike. 5 K) R* q7 m9 V6 f" M
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However, he said there aren't really any city programs that could be cut in order to save a few bucks. ( _5 f$ B7 C/ M
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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. & C2 p- J$ \0 P
+ S7 A) H$ G$ x: `' w: z+ m, XScott Hennig, with the Canadian Taxpayers Federation, said there's no excuse for a double-digit tax increase.
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He said hikes should be limited to inflation, which is pegged at 5% both this year and next, according to the city. 0 q2 u+ f! n% k+ ?" `
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"They're going to hear from a lot of angry taxpayers if they're looking at 10%," Hennig said. " d3 K! K8 d4 x+ F) X4 p
( F) `$ t& E3 B. l( h/ V"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." ) Y/ O' @) T7 c- o* F' |
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The average property tax bill in Edmonton will go up 4.95% this year, the city has said. 1 R+ {- [7 S# l' ?5 Y
$ |. ?6 ?6 t2 h- j) qThe 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. - `. R. @8 v) q F; f3 J$ R6 R
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Tax bills will be mailed May 25 and payments are due June 30. |
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