EDMONTON - The city is looking at a smaller 2013 tax increase than originally proposed, but most of that saving will disappear if money requested by seniors, artists and social groups is approved.
Taxes are set to go up 4.7 per cent next year rather than the 5.5-per-cent guideline after an unexpected $6-million rise in assessment revenue and an $1.8-million saving on funds earmarked for the now-cancelled Indy race.
That change would cut the typical homeowner’s civic property tax hike to $84 from $98.
There’s also almost $1 million extra to spend on one-time projects that don’t require money into the future.
However, most of the 31 speakers at a public hearing Monday did their best to convince city councillors they should plow an additional $5.9 million into nine projects that need help.
“The cost of maintaining this facility and keeping it up are a lot higher than the former facility,” said Art Gallery of Alberta board chairman Barry Zalmanowitz, who wants its budget boosted by $750,000.
“We would probably look at limiting hours, closing one day … and you would not get the big-name exhibitions. You would not get Andy Warhol, Matisse, Degas.”
Other requests include:
— $1.5 million more for arts and festival organizations, particularly large anchor organizations such as the Citadel Theatre and emerging groups aimed at culturally diverse audiences.
— $900,000 in additional grants for the non-profit social, sport and cultural sectors, as well as for the growing number of seniors’ centres.
— $400,000 extra toward the volunteer-run seniors’ assisted transportation network.
— $289,000 to develop plans and hire staff so construction can start next spring on the Jerry Forbes Centre, which will provide space for at least 20 non-profit groups.
But Lindsay Dodd, a representative of the Edmonton Chamber of Commerce warned, that the city’s tax increase is still too high. Dod said it should be cut to four per cent.
At the original rate, taxes will have gone up 26.8 per cent in five years, Dodd said.
“We urge you to explore all avenues to look at ways to reduce the overall increase to a more realistic maximum.”
While councillors sounded sympathetic to some of the requests, they expressed frustration the other two levels of government aren’t contributing enough.
“One of the reasons you changed it to the Art Gallery of Alberta from the Edmonton Art Gallery is in anticipation (the province) would step up in a way they haven’t,” Coun. Ben Henderson said.
Mayor Stephen Mandel took aim at the federal government, saying he’s disappointed it hasn’t put money into such projects as the Forbes centre.
“When is the federal government going to do their investment in the City of Edmonton? We’re probably sending billions of dollars to them (in taxes) … When does it come back?” he asked.
“I appreciate they have a big country, but we pay a lot of taxes. We should be able to get back some of those taxes in some form.”
While Mandel called the smaller proposed tax increase “a start,” he said it should be pushed “substantially lower” through improved efficiencies and other ideas he won’t yet reveal.
“We need to find a way to get control of our cost of operations, wages … It isn’t easy (just) because of historical evolution.”
Council starts formally discussing 2013 spending plans Tuesday when it looks at the sewer and garbage budgets, which project annual fees for the typical single-family homeowner will increase by $47.
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