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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. 5 D% w% G6 w! g% Y4 \, Z( D: k
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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. ; P* x) y' I& F! t
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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. 9 @* |8 q% ^! ?/ ?$ `9 @5 [6 {$ a
3 H0 l5 n- E( T/ H7 L# H- J" R"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 estimates
+ b: W* F3 d/ o* f4 c4 y"Given the amount of it, it's going to be scary," the mayor said. 8 l# Y( A( ] X/ D @. i
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A hike in that range could cost the average homeowner up to $200 a year. ) x# [/ G' b2 v+ \
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"There's no question costs are going up," said Coun. Michael Phair, who conceded the tax hike "may very well" be in the range predicted by Mandel.
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Coun. Ron Hayter said it's still very early in the process, and he cautioned against getting overly anxious at this point.
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$ G# h$ F( \/ M7 O3 U+ t3 CThe draft budget does not come out until November.
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6 K4 K" D# `/ _3 m( z$ _4 \"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." % K1 A) l# f9 V4 Z. k& x/ Z
8 W$ p4 h4 W/ t ^Maurer said income from investments and various financial strategies could offset a large hike.
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+ Q% X% U* `/ `; `& s7 KHowever, he said there aren't really any city programs that could be cut in order to save a few bucks.
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: l6 } v! N1 H3 v"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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& x9 N6 w8 c; [8 G& P( Y5 g- v7 YScott Hennig, with the Canadian Taxpayers Federation, said there's no excuse for a double-digit tax increase. 1 n5 k6 e- M* [3 F1 S& V' B d
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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.
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"They're going to hear from a lot of angry taxpayers if they're looking at 10%," Hennig said. ; y/ s$ l& B5 }( `7 U; m+ T! s$ g
], }4 G# V; ]* b0 S' d"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." w/ }2 P8 x$ s
( A$ q* \ R1 k. A6 o: A: I- f) }- _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. g v: P2 U% D% E5 F! V1 v, C2 W x
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Tax bills will be mailed May 25 and payments are due June 30. |
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