Make industry a priority: Caterina
Growth of non-residential taxes would take heat off homeowners
Councillors staring at a potential three years of six-percent tax increases renewed calls for more non-residential development Tuesday, or even a dedicated tax levy to push industrial projects forward.
“If that’s what it takes,” said Coun. Tony Caterina. “I think it’s just as important, if not more important, to have dedicated funding for the industrial growth as for LRT.”
City council started debating the upcoming budget Tuesday, discussing principles and taking a first look at the big numbers. It is dealing with a more difficult economic climate, as job and population growth slow.
The city’s revenue is increasing as more people pay taxes, but big-ticket items such as the Valley Line LRT, neighbourhood renewal and additional police officers approved last year are driving the budget higher.
“Times are going to get a little tight,” said Coun. Mike Nickel, calling it a sobering report.
Caterina said constant residential tax increases add up to more than 60 per cent since 2005 and growing the non-residential tax base must be a priority.
“That non-residential tax base is the most critical for us, yet we keep sputtering on the energy park and the road system up at Manning Drive, all those things that would generate so much more money for the city and take the pressure off residential,” he said. “Yet we propose one per cent for LRT; that’s not going to generate any taxes.”
“We can’t even get a damn sign up there to say this is the energy park. People still think it’s part of Sturgeon County and it’s been part of Edmonton since 1981,” said Coun. Ed Gibbons, speaking outside the meeting about the Edmonton Energy and Technology Park in the northeast. More funding could build roads, consolidate land or service cityowned land to get the first projects to move ahead.
“To offset our wish list, you have to have a vision of something else,” Gibbons said.
Valley Line LRT construction is expected to increase residential taxes by about one per cent as Edmonton starts to service the debt.
Mayor Don Iveson said the city is pushing hard to develop more industrial and commercial land.
“It’s just a big city. We have 38 different irons in the fire right now and that’s one of them,” he said.
“If there is more that we need to do, particularly to advance the northeast, then I’m sure council is going to want to engage in that.”
City manager Simon Farbrother said the next budget update will include those details and other possibilities.
Coun. Michael Oshry said he doesn’t think a dedicated levy is needed, but rather a clear message that industrial projects such as the northeast energy park are a priority.
“I think the mayor’s office has to step up,” Oshry said.
Coun. Ben Henderson said it’s also important to see that administration has kept costs down.
The increases are tied to major growth projects, not regular operating costs.
“If we weren’t doing all these projects, we would be coming in with a 0.6-percent increase,” he said.