Budget tags $60M for southwest rec centre
Residential taxes expected to increase by $58 on typical home
Gordon Kent
The Edmonton Journal
Tuesday, December 19, 2006
EDMONTON - A last-minute attempt to cut the tax hike was shot down Monday as city councillors approved a 2007 budget that will see the average Edmonton homeowner's property levy rise by $58.
The municipal tax rate was boosted by 6.5 per cent, but city politicians anticipate the final bill people receive in the mail next May will be only 4.9 per cent higher, when changes expected to the province's education tax are factored in.
Mayor Stephen Mandel described it as a "growth budget" to deal with the pressures of providing the services people need in the middle of a booming economy.
"Most of our citizens want to see more transit, more police, more ambulances. They want to see playgrounds ... I have had an unending number of calls about snow removal."
Coun. Karen Leibovici agreed, saying the city will now be able to move ahead with projects such as upgrading the Valley Zoo and building the southwest recreation centre in Terwillegar.
"Every section of the city will benefit out of this particular budget."
Provincial officials have indicated they'll collect a smaller increase from the average Edmonton ratepayer under the education property tax than they would have under previous tax policies.
Councillors are moving into this "tax room" by increasing city taxes $9 million to pay for more police, ambulance and fire service.
But homeowners will be spared from picking up a larger share of the tax burden from apartment owners. Council has overturned a 2005 decision to gradually set a uniform tax rate for single-
family houses and apartments, a move that would have lowered taxes next year by $25 on a typical apartment suite while raising the rate on houses by about $6.
The rate for apartments, now 15 per cent higher, was supposed to decline to the same level as houses in three years, but councillors decided the first step change, already in place, didn't lead landlords to cut rents as predicted.
For the third year in a row, only Coun. Mike Nickel voted against the budget, arguing it provides for taxes higher than the local inflation rate and will hurt "little guys" such as seniors and single parents.
"It's only pennies a day, but quite frankly those pennies don't fall from heaven," he said.
"To say that we're taking up room on education property taxes ... is simply a shell game. To me, it's going where one level of government has left room, and it's quickly gobbled up by another."
He supported an attempt by council veterans Terry Cavanagh and Ron Hayter to limit the civic tax hike to 5.8 per cent because it isn't certain the provincial government will provide the tax space that's expected.
"What if it doesn't occur? Then we have told the citizens they must have a tax increase of 6.5 per cent," Hayter said.
"In my opinion, that's too high, and there's no guarantee of a reduction until spring."
Other council members easily defeated the proposal, with Mandel saying he'll be "shocked" if the province doesn't come through.
Coun. Kim Krushell insisted her colleagues have to take a stand.
"If we don't take that education tax room, we don't get those dollars, and then the province will be wondering why we come whining to them for more money."
The final property-tax figure will be known in May when council sets mill rates, which could also be affected by factors such as the 2006 surplus or higher-than-expected growth revenue.
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BY THE NUMBERS
- Total 2007 budget: $2.3 billion.
- Impact of projected 4.9-per-cent final tax hike on average homeowner: $58.
- Increase in taxes from 2006: $64 million ($23 million due to growth from new buildings, businesses and other sources, and $41 million from higher tax rates).
- Annual impact on average homeowner of hikes in waste management, sanitary sewer and drainage fees: $37.
OTHER FEE INCREASES:
- Arena-rental times: children, $100, up $5; adults, $203.85, up $7.85.
- Tier 1 fitness and aquatic facilities admission: child, $3.50, up 25 cents; families, $18, up $2.70.
- Fort Edmonton Park admission: child, $6.50, up $1.50; adult, $13, up $3.25
- Valley Zoo summer admission: child, $4.25, up 25 cents; adult, $8.50, up 50 cents.
- Transit fare: adult cash, $2.50, up 25 cents; 10 adult tickets, $21, up $2.50 (effective February); senior/youth cash $2.25, up 25 cents; 10 senior/youth tickets, $18.50, up $2.50 (effective February).
WHAT IT COVERS:
- 62 more police officers and civilian employees.
- 30 more firefighters to staff the new Meadows fire station and aerial trucks in two other stations.
- 22 staff to operate two extra ambulances to meet city growth and improve response times.
- $5.5 million to redevelop the Fred Broadstock pool.
- $300,000 toward snow-making equipment for cross-country skiing at Gold Bar park.
- $1.4 million for artificial turf at the Fred Singer soccer field.
- $1.7 million to help design and build a new sea lion facility at the Valley Zoo.
- $3.2 million for traffic improvements on St. Albert Trail and Dunvegan Road.
- $28.3 million for the multi-year construction of an interchange at 23rd Avenue and Gateway Boulevard (depending on actual costs, council may re-examine this $125-million project in February).
- $60.2 million toward development of the southwest recreation centre in Terwillegar.
Ran with fact box "By the Numbers", which has been appended to this story.
© The Edmonton Journal 2006
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