Lowest tax hike in decade in Edmonton

City council passed Edmonton’s lowest tax increase in a decade Tuesday amid warnings this short-term gain could produce long-term pain.

The 3.3-per-cent property tax hike will cost the average homeowner about $60 next year, but one of two councillors to vote against the budget contended it doesn’t do enough for at-risk groups, transit riders and families.

“This budget is falling short in meeting some of the core service needs of Edmontonians that I represent,” said Coun. Amarjeet Sohi, who is concerned about such issues as bus crowding, rising fares and higher facility entry fees.

“I think we’re reaching a tipping point. Our services and amenities are becoming more and more unaffordable … This is a punitive budget for those who can least afford to pay it.”

Coun. Ben Henderson, who supported the $2-billion spending plan, warned that after money is put aside for wage increases and neighbourhood rehabilitation, little is left to improve city operations.

Residents complain to him more about the quality of the services they receive than the growth in taxes, he said.

“I think there’s a price to to be paid for cutting things down as close to the bone as we have cut them … I hope as we go forward we don’t kid ourselves that we can continue to do this without there being implications.”

But Coun. Kerry Diotte, the other budget naysayer, took the opposite position, arguing people want council to hold the line and his colleagues missed the chance for a 2013 tax freeze.

Although councillors asked city staff last spring to produce a budget based on a 5.5-per-cent tax increase, they whittled down that figure during two days of deliberations.

The biggest cut was a $7.9-million reduction found by administrators that was proposed by Mayor Stephen Mandel.

He gave 17 suggestions for where to save money, including holding off on hiring four new intergovernmental affairs staff, boosting photo radar fine revenues and getting more profits from some city enterprises.