Municipal property tax hike sits at 2.5% — for now

Edmonton residents are looking at a 2.5-per-cent property tax hike next year if councillors approve all the proposed budget amendments.

This would see the typical homeowners pay an extra $44 in 2013.

While that’s less than half the 5.5-per-cent increase, or $98 average, recommended when the budget was released last month, don’t celebrate yet — some amendments are contradictory and many are unlikely to pass.

For example, the largest change would be Coun. Kerry Diotte’s proposed $11.4-million cut to the police budget, but even the person who seconded his motion, Coun. Linda Sloan, said she didn’t agree with it.

Mayor Stephen Mandel went further, calling it a “ridiculous” and “absolutely ludicrous” idea that would mean laying off police officers.

At the same time, Coun. Tony Caterina wants to increase the police budget by $6.5 million so they can add 29 officers, nine sheriffs to drive prisoners to the new remand centre and four paramedics for the cells.

Other big-ticket amendments are a tax cut of $7.9 million, or three-quarters of a percentage point, and reducing the tax increase for neighbourhood renewal by $5.2 million to one percentage point from 1.5 per cent.

Councillors start voting Monday on about four dozen amendments, which also include chopping a $1-million city image and reputation initiative and adding $900,000 for seniors and community facilities.

Some items brought up by the administration, such as saving $1.8 million no longer needed for the defunct Indy race and an unexpected $6-million growth in assessments, mean the tax hike currently sits at 4.7 per cent.

The final budget is expected to be passed by the middle of next week.

The mill rate that sets civic taxes on each property will be approved in April after the province determines the education property tax, which makes up about one-third of Edmonton’s total property tax bill.