Edmonton property tax increase could reach almost nine per cent

EDMONTON - Edmonton property taxes are slated to increase next year by up to 8.6 per cent, city officials say.

A report on 2013 budget preparation indicates that forecast spending and income mean the city faces an average seven-per-cent tax hike to maintain current services and pay for neighbourhood renewal.

The proposed new or expanded services now being evaluated for consideration by councillors would add another 1.6 per cent to the typical tax bill, says the report scheduled to be discussed at Wednesday’s council meeting.

“Achieving (council’s) goals means balancing competing priorities between the needs of citizens and the limitations of available resources.”

This year’s final average civic tax increase set in April was 5.2 per cent.

While the report shows city revenue is expected to go up $26 million in 2013, helped by $5.6 million extra from transit due to a fare increase, expenses are projected to rise by more than double that amount.

Most of that money will go to cover the $29-million cost of labour contract settlements.

The administration is providing information to help council set guidelines for preparing the operating budget due in November, but Coun. Dave Loken said Tuesday it’s too early to determine how much taxes will actually increase.

“I would like to see it go lower, but it’s not written in stone … I have to look at all the factors. I can’t sit here right now and say this is going to be the number,” he said.

“Every year we go through this. It’s almost misleading. We’re talking guidelines, we’re talking forecasts. Nobody can tell you what the number will be at this point.”

Although Coun. Karen Leibovici agreed the projected tax hike sounds “on the high side,” she said council usually comes in with a lower figure following the budget debate.

“The economy seems to be (improving) a bit, but we have to recognize that not everyone has the ability to pay for increased taxes … We need to keep it reasonable. What that is, I’m not quite sure.”

She hopes the city will find ways to improve efficiency and spend money better during a planned assessment of 12 programs, which is expected to take 18 months to complete.

“It’s evaluating the way work is being done within the program and making sure the city is effective. We’re not looking at layoffs.”