The following ran in last week’s Edmonton Examiner as part of our monthly ‘Councillor Connection’ column. It is reproduced here for reference.
Last week Council established 2011 budget guidelines for City Administration to work towards.
As with last year, Council set a target for an overall tax increase of 5% for 2011.
I recognize that very few Edmontonians’ incomes will increase that much in 2011, and that tax increases that exceed inflation are especially difficult for those on fixed incomes.
I wish that municipalities in Alberta had access to other forms of taxation, (such as the sales taxes US cities have, or a dedicated portion of the income tax like Winnipeg gets), which would be far more progressive, and would reduce our over-reliance on property taxes. In this vein, we will be looking at whether there are some user fees that could be increased to support certain services rather than taxes.
I should stress that the main drivers in the proposed increase are infrastructure related.
The guideline includes a 2% charge dedicated specifically to investments in neighbourhood roads, curbs, and sidewalks. This would be the third year of 2% increases in a row for this program, which altogether will increase investment in neighbourhood reconstruction and preventive maintenance by more than $50 million annually.
At this rate we’ll be able to tackle the backlog of work in mature neighbourhoods within 10-20 years instead of 50-100, while also preventing newer neighbourhoods from falling into the same disrepair.
There are also debt service costs associated with the major road and bridge projects we see unfolding around us, as well as the new recreation centres. These payments alone are equivalent to almost a 3% tax increase.
There are other costs under pressure from the growth of the city – i.e. the more we spread out the less efficient our emergency services, waste and transportation systems become. These operating costs are rising faster than the tax revenue we get from new development.
In other words, continued sprawl is pushing costs, and in turn taxes, up.
On the bright side, previous years’ larger increases were also driven by a combination of increased infrastructure spending and labour market pressure. With the economic slowdown we can anticipate a more moderate cost of labour for the city, and better pricing on infrastructure, which is why we’re eager to push ahead with more LRT.


