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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. / Y7 Q7 N# T% b' Y
, i9 p- h8 k3 l) s6 L& m( CEdmontonians 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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n; J0 Q8 Y6 ?2 Y d# }# N; DMandel 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.
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"Looking at this we're talking an 8-10% tax increase," Mandel said in council chambers.
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4 }- w% E8 i9 o* V$ XCity manager Al Maurer confirmed that Mandel's prediction was on the money, based on initial cost estimates, H2 D* z9 L' _
"Given the amount of it, it's going to be scary," the mayor said. 4 {; R# d# [6 X% j! u
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A hike in that range could cost the average homeowner up to $200 a year. ; T/ G& \6 P: M5 i
' i* q- q# n1 o0 A# g"There's no question costs are going up," said Coun. Michael Phair, who conceded the tax hike "may very well" be in the range predicted by Mandel. ' ^7 ~5 u h7 p* D* r8 N" L
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Coun. Ron Hayter said it's still very early in the process, and he cautioned against getting overly anxious at this point. 6 d4 Z8 F) H" q0 v# V5 T9 c3 V
3 u+ h1 K, q R) a% Q; f7 eThe draft budget does not come out until November.
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"I'm not looking for a major increase next year, at least not too much more than we've already approved for this year," Hayter said.
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"It won't be as bad as some people are making it out." / O; K) s/ e+ M1 J1 k, f0 R
2 w! z2 S0 E% @1 D% E/ d aMaurer said income from investments and various financial strategies could offset a large hike.
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- H! T) ?8 B2 L( Z& L2 K! }3 d7 WHowever, he said there aren't really any city programs that could be cut in order to save a few bucks.
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"We've certainly got more demands," Maurer said, noting council still has to find money to fund an improved snow-clearing program.
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Scott Hennig, with the Canadian Taxpayers Federation, said there's no excuse for a double-digit tax increase. 6 w' ^6 n" i6 U8 P
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He said hikes should be limited to inflation, which is pegged at 5% both this year and next, according to the city. ; E+ y+ s, J5 k, {6 X+ d; _& l
5 y v5 n, P, h$ n2 x/ N"They're going to hear from a lot of angry taxpayers if they're looking at 10%," Hennig said. 6 w. V7 x- p! B6 c0 n# H; t; v
! d9 g; J+ ] L/ q: [1 I"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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! X0 c+ h! H! @) n1 A1 BThe average property tax bill in Edmonton will go up 4.95% this year, the city has said. * x" l1 V: s" `' u
& F" ]% z6 A& H' L9 f$ Q8 yThe 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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& V. ^. Z( u, eTax bills will be mailed May 25 and payments are due June 30. |
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