Tax hikes on the way for 2009, Edmonton council warns
Last Updated: Thursday, May 29, 2008 | 10:48 AM MT
CBC News
As property tax bills land in mailboxes throughout Edmonton, city council is already warning that next year's bills will be at least nine per cent higher.
A city report released Wednesday estimates municipal taxes will need to be raised by at least 9.4 per cent to help cover the costs of running the booming city.
Coun. Kim Krushell said the nine per cent increase is needed just to maintain existing services, without accounting for population growth or new projects.
"This is … just maintaining existing levels. These are no extra frills. This is where we need to start," she explained.
But Coun. Tony Caterina said he worries a double-digit increase might be necessary to keep things running, as the city continues to expand and grow.
Property taxes for 2008 were boosted on average by 7.5 per cent.
Coun. Don Iveson said even a nine per cent jump is "harsh," and he worries how the public will take the news.
"I'm curious as to whether administration has a strategy for communicating to citizens that we are not lighting their money on fire," he said. "We are using it to do precisely the things they are demanding, and we're still short."
Caterina agreed, saying council needs to have a communications plan in place to prepare the public for the bad news.
"I think that's also important to get out to the public, these are our priorities. These are the other things that we might want to do. Are you willing to pay for it, or are you willing to wait?" he said.
"I think we have to communicate that very, very soon in the process, up front. That there's a choice to be made, and there's a price to pay."
He said he hopes taxpayers will understand the difference between want and need.
The 2009 budget debate begins this fall.
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