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Mayor warns of 'scary' tax hike
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3 l+ t- R$ ]- i* q- U* I9 {% CThink your property taxes are high now? You ain't seen nothing yet. 9 w5 O: ~5 A w
- C4 x' I, V" L4 q' @* {6 u5 X7 GEdmontonians 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. @: j- v- K, i8 @ \0 u. G1 g% P/ 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.
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' L( W3 {6 D5 f2 S6 U, ?"Looking at this we're talking an 8-10% tax increase," Mandel said in council chambers.
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E! F; W: ^5 ^% Y; S9 @9 z) YCity manager Al Maurer confirmed that Mandel's prediction was on the money, based on initial cost estimates
7 s# O4 W6 Q8 @) o"Given the amount of it, it's going to be scary," the mayor said. + u7 o1 s% i) m+ ]
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A hike in that range could cost the average homeowner up to $200 a year.
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"There's no question costs are going up," said Coun. Michael Phair, who conceded the tax hike "may very well" be in the range predicted by Mandel.
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Coun. Ron Hayter said it's still very early in the process, and he cautioned against getting overly anxious at this point.
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The draft budget does not come out until November.
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"I'm not looking for a major increase next year, at least not too much more than we've already approved for this year," Hayter said.
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"It won't be as bad as some people are making it out." , p8 R0 {# W6 ^
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Maurer said income from investments and various financial strategies could offset a large hike.
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However, he said there aren't really any city programs that could be cut in order to save a few bucks. 5 l; [0 w9 n: g* w! `3 S0 g
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"We've certainly got more demands," Maurer said, noting council still has to find money to fund an improved snow-clearing program.
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Scott Hennig, with the Canadian Taxpayers Federation, said there's no excuse for a double-digit tax increase.
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He said hikes should be limited to inflation, which is pegged at 5% both this year and next, according to the city. # W0 y Y: D% ~8 x) b% s: U
* D0 T( ?* K! X$ M' } M"They're going to hear from a lot of angry taxpayers if they're looking at 10%," Hennig said.
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+ `( s2 F: Q$ L2 [7 _. t, W"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.
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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.
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Tax bills will be mailed May 25 and payments are due June 30. |
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