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Mayor warns of 'scary' tax hike
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9 h9 T; t! Y1 _Think 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. 1 {+ W2 z3 ]9 M: x: U
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"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( R/ D- b* S" U$ r) w
"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 $200 a year.
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"There's no question costs are going up," said Coun. Michael Phair, who conceded the tax hike "may very well" be in the range predicted by Mandel.
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, i, j1 A' e9 @Coun. Ron Hayter said it's still very early in the process, and he cautioned against getting overly anxious at this point. : P/ `2 W$ O2 o, Z ]3 [
, A2 N- v8 l% f8 G6 b$ LThe draft budget does not come out until November.
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"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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# B3 q. }2 f6 a( ]7 y"It won't be as bad as some people are making it out."
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; z' n# [" a+ g- b6 lMaurer said income from investments and various financial strategies could offset a large hike. + Z7 [9 i# e' o, g% h3 E
5 W/ ^6 }) s6 z1 Y1 p5 Y) Z( IHowever, he said there aren't really any city programs that could be cut in order to save a few bucks. & S& p. Y, `, ?
7 h. F' J. P9 Q. l: f"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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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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+ L Q6 T ?2 T. h) ?: N"They're going to hear from a lot of angry taxpayers if they're looking at 10%," Hennig said.
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. T2 | v, X2 f: N6 H% z- j"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." ( | e. F/ v, T- R5 T; G
/ E+ K$ L1 z+ H! z% L: qThe average property tax bill in Edmonton will go up 4.95% this year, the city has said.
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2 O5 a1 F8 e3 {4 ]2 x2 hThe 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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1 z3 y# R) |0 m5 d5 PTax bills will be mailed May 25 and payments are due June 30. |
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