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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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3 Q! ]/ A) T# [* ^( ?4 Q0 D. zEdmontonians 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. + e3 [6 e2 `5 \
: i# v7 M' F6 mMandel 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. # f& |" ^0 T V: F" X8 k7 H
+ u" u0 V# E7 P3 F4 {( g"Looking at this we're talking an 8-10% tax increase," Mandel said in council chambers. ) k8 C0 G: k1 \
4 ~( ?; h: V. M% RCity manager Al Maurer confirmed that Mandel's prediction was on the money, based on initial cost estimates
2 F' z9 N# q8 I, U+ z' T" |% Q"Given the amount of it, it's going to be scary," the mayor said. 6 a) h$ y. q7 k$ ?% v: J
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A hike in that range could cost the average homeowner up to $200 a year. & X9 `' b1 j0 d4 k1 o- i
2 |, P, T3 `9 w. V0 O3 J+ P% @! \"There's no question costs are going up," said Coun. Michael Phair, who conceded the tax hike "may very well" be in the range predicted by Mandel.
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Coun. Ron Hayter said it's still very early in the process, and he cautioned against getting overly anxious at this point. + L; P& c) A2 R* f
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The draft budget does not come out until November.
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"I'm not looking for a major increase next year, at least not too much more than we've already approved for this year," Hayter said. ' A$ U% }; o0 V% Z
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"It won't be as bad as some people are making it out."
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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. . d' Y0 s- P' s- R' R
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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. 7 |1 |# {) ]' V) K- e8 n0 [% t
# d2 }' O, ~ k: ?( K( {& iHe 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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: L u) U% d- ~" o- ^# e& F"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.
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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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