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Mayor warns of 'scary' tax hike
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7 y8 v" c' c% ]4 I5 OThink your property taxes are high now? You ain't seen nothing yet. - |! i7 z5 Z/ \
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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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/ N8 J: } w$ u( T$ NMandel 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. + ` H/ \( B: f4 z: U, u* Y
. c1 r, _8 G. ?# [! ^"Looking at this we're talking an 8-10% tax increase," Mandel said in council chambers. " `2 O* v* f, C( X- G# y @" m2 ~; Y
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City manager Al Maurer confirmed that Mandel's prediction was on the money, based on initial cost estimates
8 _; A' d8 P- z4 ], q [' s"Given the amount of it, it's going to be scary," the mayor said.
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) @ k& ~" M$ t7 K; yA hike in that range could cost the average homeowner up to $200 a year. + b5 ~- X2 r/ _
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"There's no question costs are going up," said Coun. Michael Phair, who conceded the tax hike "may very well" be in the range predicted by Mandel. % G% M) e$ v, v/ t/ e$ e
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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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/ k4 w0 k4 W/ S* {, t' ?The 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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0 q" f$ A$ T- X"It won't be as bad as some people are making it out." 2 S4 f0 b) C7 p. ~" \# b
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Maurer said income from investments and various financial strategies could offset a large hike.
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3 q/ c4 u) D; C" T) x1 u0 LHowever, 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.
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# H* I/ Q" L3 s8 E- p3 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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1 t M m9 V* s) a"They're going to hear from a lot of angry taxpayers if they're looking at 10%," Hennig said.
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"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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The average property tax bill in Edmonton will go up 4.95% this year, the city has said. 2 h4 p+ m5 h j) s9 o
: M6 j# m6 O' F5 s! b9 e+ r: r" FThe 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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& ?5 R) |. S. U) P2 e' ETax bills will be mailed May 25 and payments are due June 30. |
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