Testing appetite for taxes: Edmonton asks residents to fill out survey

Before Edmonton's new city council heads into its first budget session, the city is asking residents for their input on a proposed 1.8 per cent tax increase in 2022. 

The city launched an online survey Monday and is giving the public until Wednesday to submit feedback before council begins debating the recommended operating and capital budgets. 

Council will hear from the public speakers on Nov. 29, before beginning to cut, tweak or alter the proposed $3 billion operating budget and $11 billion 2019-2022 capital budget. 

Of the proposed 1.8 tax increase, 0.7 per cent would go toward municipal services like transit, maintaining street lights, snow clearing, recreation facilities and parks. 

Another 0.7 per cent is slated for the Edmonton police, 0.3 per cent to alley renewal and 0.1 per cent to the Valley Line LRT.

The city report shows the average household would pay approximately $714 dollars in property taxes in 2022 on every $100,000 of the assessed value of their home — an increase of $14 compared to 2021.

The survey asks respondents whether they support a tax hike that it says would maintain or improve programs and services. No tax hike or a tax cut could end up shrinking services and impacting longer-term finances. 

The previous council approved the four-year budget for 2019-2022 but every spring and fall, administration presents adjustments, usually because of factors like provincial or federal budgets, legislation changes, operating impacts of capital projects and unforeseen changes to economic forecasts. 

The COVID-19 pandemic is affecting the 2022 operating budget, but the city is addressing it on a one-time basis with budget strategies and a special dividend totalling $96.7 million.

The city report says Edmonton's economy is projected to grow more than expected, and projects a return to pre-pandemic output levels by the end of 2022. 

"However, there remains a great deal of uncertainty with regards to how the pandemic will impact economic activity in 2022 and beyond," the report says. 

Supply chain disruptions related to the pandemic are driving up prices and limiting availability of some materials and goods, the report says. 

Consumer inflation is expected to remain high throughout 2021, but easing throughout 2022, coming down to the 2 per cent range from the current 3.7 per cent. 

"Taking into consideration more pronounced inflationary pressures, administration believes the 1.8 per cent tax increase recommended in this budget for 2022 to be fiscally prudent and supportive of the current economic climate," the report says.