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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.
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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. * x3 l/ x$ Q3 m' w x! C! f: u# W3 X
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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. % c$ Y# @4 D2 _- i0 R
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"Looking at this we're talking an 8-10% tax increase," Mandel said in council chambers. 4 w! W8 C& ~1 j2 d/ e/ v
: Z6 `$ i w: K8 O: DCity manager Al Maurer confirmed that Mandel's prediction was on the money, based on initial cost estimates
/ m9 a @. g# g f"Given the amount of it, it's going to be scary," the mayor said.
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* I6 B; M5 y* NA hike in that range could cost the average homeowner up to $200 a year. 7 J' ^, { F- w# L. e
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"There's no question costs are going up," said Coun. Michael Phair, who conceded the tax hike "may very well" be in the range predicted by Mandel.
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Coun. Ron Hayter said it's still very early in the process, and he cautioned against getting overly anxious at this point.
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The draft budget does not come out until November. . }% M: U/ [4 m9 Q1 \1 B. w' _# j
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"I'm not looking for a major increase next year, at least not too much more than we've already approved for this year," Hayter said.
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"It won't be as bad as some people are making it out." + w' _0 {4 M- R# C
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Maurer said income from investments and various financial strategies could offset a large hike.
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9 F5 [# D1 o1 P; D8 mHowever, he said there aren't really any city programs that could be cut in order to save a few bucks. ( k6 ]$ u3 x( V; z& E
' j( {4 p, [9 K) X8 W"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. ) O9 x3 a- s' \, _
6 ~+ e; o2 w3 D- y3 D) hHe said hikes should be limited to inflation, which is pegged at 5% both this year and next, according to the city. ) ?; u; B* l- t0 v
; |" Z4 A# [% @9 A"They're going to hear from a lot of angry taxpayers if they're looking at 10%," Hennig said.
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2 l2 X( {2 _. F"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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; S: E, g; ]0 L9 b6 HThe average property tax bill in Edmonton will go up 4.95% this year, the city has said. 9 u w& ^, v! V e
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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. ; K! B$ b9 W. x8 m
1 A/ U2 t6 w* Q; f2 }. O1 {Tax bills will be mailed May 25 and payments are due June 30. |
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