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Mayor warns of 'scary' tax hike
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/ U: E! O/ ^" n' b0 ~/ IThink 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. 1 @! Z0 T3 H: X0 [* E
& N. S" X2 L! q1 u0 n: B u: [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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7 v( M# }& R. e6 `"Looking at this we're talking an 8-10% tax increase," Mandel said in council chambers. " P1 p7 t- t7 e
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City manager Al Maurer confirmed that Mandel's prediction was on the money, based on initial cost estimates, \% s. [- @( R9 i4 _$ R( a2 M
"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 $200 a year.
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, M8 Q4 X1 Z2 O0 Q% S) x: g# i"There's no question costs are going up," said Coun. Michael Phair, who conceded the tax hike "may very well" be in the range predicted by Mandel. 3 l4 \# l8 }& @4 K0 u( X0 w1 M
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Coun. Ron Hayter said it's still very early in the process, and he cautioned against getting overly anxious at this point.
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The draft budget does not come out until November. ! a- [- W2 ?# v! R% Z6 H
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"I'm not looking for a major increase next year, at least not too much more than we've already approved for this year," Hayter said.
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/ b( _: D% M5 G) n, L2 N"It won't be as bad as some people are making it out." u! Q- {2 ]1 w$ g& [" @% }1 r1 p
D7 L2 N" Z; YMaurer said income from investments and various financial strategies could offset a large hike.
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7 d" I. N3 r) ^, \6 X) C5 n+ |' uHowever, he said there aren't really any city programs that could be cut in order to save a few bucks. ' O1 b& D; e) Y# ~ w2 L& s
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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. . ^+ p# A( m# }+ ^" a2 y
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Scott Hennig, with the Canadian Taxpayers Federation, said there's no excuse for a double-digit tax increase. ' c, h# F6 k. i) E; Q
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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. ( W2 I( {# c+ z4 M' M
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"They're going to hear from a lot of angry taxpayers if they're looking at 10%," Hennig said. ( j8 w$ }' [9 f$ Y0 Y+ T" R$ R f
) X% z) ?9 i Q5 t# V5 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." 9 F8 C# u' {+ \& A& O
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The average property tax bill in Edmonton will go up 4.95% this year, the city has said. , s' }: j Q h; v1 b
. J: N4 e0 b& `- kThe 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. * g2 Y9 t: W% s, r
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Tax bills will be mailed May 25 and payments are due June 30. |
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