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Mayor warns of 'scary' tax hike
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/ a+ Z' P1 ?7 j2 s2 y: A9 E" XThink your property taxes are high now? You ain't seen nothing yet. , ~6 a* Q' M) y( o/ k
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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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% E8 S) A- r( P0 p( sMandel 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. 0 Z1 h0 ^( [/ k: E' w: m: o
3 J8 {2 R6 ~, b"Looking at this we're talking an 8-10% tax increase," Mandel said in council chambers.
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City manager Al Maurer confirmed that Mandel's prediction was on the money, based on initial cost estimates
1 @* m9 U7 a9 @"Given the amount of it, it's going to be scary," the mayor said. " ^/ S1 a8 a2 M4 p! y& w
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A hike in that range could cost the average homeowner up to $200 a year. % b% [: Q* b: b1 r
0 Y2 |1 v6 v2 V' Q"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. $ U, r0 L, u1 k
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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. 1 c( G2 L# @+ ?! d. e: T& a* ]. o
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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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0 m8 |# P+ l4 Z) T: H6 k"It won't be as bad as some people are making it out." 7 W4 l! Y& }8 Z. H* S
3 p$ _4 A6 I8 ^1 n8 ^# `8 UMaurer said income from investments and various financial strategies could offset a large hike.
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% n2 ^( B$ g! \3 y% W2 JHowever, 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. / P4 L6 m& r, d, J0 K( s* A
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Scott Hennig, with the Canadian Taxpayers Federation, said there's no excuse for a double-digit tax increase. ' x( U7 [. t& v+ N( X' ^' d
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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.
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"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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2 x! |+ e; ~$ l: L! E, e3 |The average property tax bill in Edmonton will go up 4.95% this year, the city has said. % x. t: E& q2 O" b9 |. |+ q4 a
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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. : l5 P1 B/ W6 H; l2 e
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Tax bills will be mailed May 25 and payments are due June 30. |
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