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Mayor warns of 'scary' tax hike
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# a. f( n; O: f" C1 [ E. CThink your property taxes are high now? You ain't seen nothing yet. " \1 I, ?- o! j0 m" g; y; b0 W
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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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% z# v3 u, M# k4 T6 X1 S; M! `- `( _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. 2 a0 _, ?& k8 o/ f
2 |/ t* m' S( w1 |, u; O"Looking at this we're talking an 8-10% tax increase," Mandel said in council chambers.
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City manager Al Maurer confirmed that Mandel's prediction was on the money, based on initial cost estimates7 L8 b& `0 N+ p6 T2 k
"Given the amount of it, it's going to be scary," the mayor said. : C0 a t* b m& k4 w8 g& }4 d
! ?* U8 y6 ]# i# K; ]" g& MA hike in that range could cost the average homeowner up to $200 a year.
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"There's no question costs are going up," said Coun. Michael Phair, who conceded the tax hike "may very well" be in the range predicted by Mandel.
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$ h2 Z3 |' a* u+ h ?Coun. Ron Hayter said it's still very early in the process, and he cautioned against getting overly anxious at this point.
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The draft budget does not come out until November.
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# A. n0 l8 {/ W1 i. _( L7 Q/ j* j- A"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. & N* m( J3 g; z1 S. ]
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"It won't be as bad as some people are making it out." ) K4 h+ {: M D: f) y* y4 b
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Maurer said income from investments and various financial strategies could offset a large hike.
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. q! ?, P( ^: [, fHowever, he said there aren't really any city programs that could be cut in order to save a few bucks. 5 q6 F: U. |- e B* {
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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.
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Scott Hennig, with the Canadian Taxpayers Federation, said there's no excuse for a double-digit tax increase.
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7 Y+ c# L/ F4 }1 h4 `He said hikes should be limited to inflation, which is pegged at 5% both this year and next, according to the city. ' n& F& S) I( J& y; Q+ p
& d$ t8 t0 z' r4 g2 q3 P"They're going to hear from a lot of angry taxpayers if they're looking at 10%," Hennig said.
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; x! E- b5 a# y; s( P"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. 8 G/ p, J( x; y0 P7 M) t
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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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Tax bills will be mailed May 25 and payments are due June 30. |
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