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Mayor warns of 'scary' tax hike. E1 u2 [2 e; U
. V; R0 s. k# B; VThink your property taxes are high now? You ain't seen nothing yet.
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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. # ?3 A% `3 b. m& L; l1 j, a' ^' P( z
/ }2 k+ Z: \1 m- g"Looking at this we're talking an 8-10% tax increase," Mandel said in council chambers. + e1 V m+ q6 L* ~3 X% j* m( A
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City manager Al Maurer confirmed that Mandel's prediction was on the money, based on initial cost estimates) C& h- B- E8 q+ `+ S% L; m( W2 t/ a
"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 $200 a year. ( q3 e W2 ~/ p0 b! H6 k4 @
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"There's no question costs are going up," said Coun. Michael Phair, who conceded the tax hike "may very well" be in the range predicted by Mandel. ( K! O. v; A# ~, j% K: p, j& A
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Coun. Ron Hayter said it's still very early in the process, and he cautioned against getting overly anxious at this point. : B5 @: f8 d, W- P+ g6 o, y
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The draft budget does not come out until November.
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4 L9 g( j: }) e+ m"I'm not looking for a major increase next year, at least not too much more than we've already approved for this year," Hayter said. 0 V9 }9 E/ X+ ~' d' T1 w
' u3 a; S4 d3 G m3 R"It won't be as bad as some people are making it out." # r% O/ p* Q9 ~5 ?0 n. h
7 \9 |$ W& _0 q: jMaurer said income from investments and various financial strategies could offset a large hike.
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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.
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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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5 E& _; `2 }, h- D8 x% o8 l# E7 |Scott Hennig, with the Canadian Taxpayers Federation, said there's no excuse for a double-digit tax increase. 3 o/ U' K% _; \# H
0 ~+ C l: S% U7 G* L: R1 h! AHe 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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' e) |' u+ ~1 l: z' e( q"They're going to hear from a lot of angry taxpayers if they're looking at 10%," Hennig said. 4 E' s! l0 V6 n0 g8 Y; C8 j4 r
& Y: g9 S9 n: U4 z% R' Q6 l4 ]' {' 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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! u) i! h! l2 ?7 e7 F; T! \The average property tax bill in Edmonton will go up 4.95% this year, the city has said.
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: K) w; e, I* x, H' C4 Q& gThe 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. * Y) r1 Q' ~% v# \$ j5 W
) a! `+ l4 {, w0 k. E" [Tax bills will be mailed May 25 and payments are due June 30. |
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