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Edmonton mayoral candidates pledge zero tax increase, but will it work?

Most candidates running for the mayors chair in Edmontonare pledging not to raise property taxes over the next couple of years if they get elected. It isn't clear if their promises are realistic or will win over voters.

Council agreed to hold the line in 2021 after several years of steady increases

(CBC)

Most candidates running for the mayor's chair in Edmontonare pledgingnot to raise property taxes over the next couple ofyears if they get elected.

It isn't clear whether their promises are realistic or will win over voters.

After all, the mayor only has one vote on the 13-member council.

After steady tax increases during Don Iveson's two terms as mayor, city council agreed to a zero increase in 2021, as residents and businesses continued to feel the toll of the COVID-19 pandemic.

Judith Garber, a political scientist atthe University of Alberta, said severalcandidates promising no tax increases are also campaigningto improvepolicing, road maintenance,snow removal and other city services.

"Many voters might find that very attractive," Garber said. "It seems impossible."

With the provincial government cutting transfers to municipalities in recent budgets, Edmonton has even less money to draw on, she said.

The five or six candidates promising no tax increases are ideologically motivated toward a centre-right base, Garbersuggested.

"Yes, they're trying to get votes," shesaid. "But all of them are competing for a similar pool of voters and that may or may not work."

The candidates on taxes

Mike Nickel, a multi-term city councillor, has consistently pushed for no tax increases and has voted against initiatives like bike lanes and expanding the LRT system.

Diana Steele said her plan is to hold taxes and aim for smarter financial decisions, including reviewing the property tax system to determine if it is fair and structured properly.

Michael Oshry, a former city councillor and entrepreneur, has specifically committed to decreasing the tax levy by one per cent in 2023.

Keeping the tax increases at zero in the following years would be "contingent on a better fiscal deal with the province of Alberta," his platform says.

Amarjeet Sohi, a former federal minister of infrastructure who supports expanding the city's LRT system, is not pledging to hold or raise taxes. Sohi says he wants to keep programs, recreation and transitaffordable and will work with the next council and administration tokeep the increases to a minimum.

Kim Krushell, a Ward 2 councillorfrom 2004 and 2013, said she's committed to holding the line on taxes for the first two years and getting creative about generating revenue.

Cheryll Watson's platform suggests core services should take priority, like roads, bridges, garbage pickup and disposal and recreation centres.

She also thinks visitors from neighbouring municipalities could pay road tolls, as they use the roads and amenities when visiting Edmonton.

Rick Comrie stands against tax increases. Hewithdrew from the mayoral race this week to support Nickel but his name will still appear on the ballot.

Only one candidate suggests outrightthat taxes should go up: Brian (Breezy) Gregg believes the city should invest in a "caring economy" to save money 20 years from now.

Where your taxes go

The owner of a typical single-family Edmonton home, assessed at $380,500, will pay $3,648 in property taxes this year.

Of that, 73 per cent or $2,667 will help pay for municipal programs and services, and 27 per cent or $981 will go to fund Alberta's education.

In 2021, 15.7 per cent of the city's $3 billion operating budget goes to the Edmonton Police Service; 15.6 per cent to community services and attractions; 13 per cent to provide public transit; 7.5 per cent to fire services, 5.5 per cent to the Neighborhood Renewal Program, and 5.3 per cent for roads and traffic management.

Another 10 per cent of the operating budget is dedicated to paying off the city's debt incurred on capital projects. The rest goes toward a range of departments and offices, including the city auditor, the city manager, fleet and facility operations, integrated infrastructure services and planning and housing.

Although the overall tax rate was frozen in 2021, council approved slight increases in three areas: police went up by 0.6 per cent, the alley renewal program by 0.3 per cent and the Valley Line LRT by 0.6 per cent.

These increases were offset by a 1.5 per cent decrease in municipal services, which included cutting staff and hours of operation at city facilities like recreation centres.

(The operating budget does not include waste pickup and management. Asingle unit home pays $47.22 a month, or$567 a year.)

In an exclusive pollcommissioned earlier this year by CBC Edmonton, respondents overwhelming rated keeping commercial and residential property taxes low as very important.

One respondent, Zahir Shivji, told CBC News he thinks taxes on commercial and residential properties are high but also that Edmonton loses some of its potential to generate revenue as peoplemove outside the city limits.

"If I'm in Nisku, for example, I'm still going to visit Edmonton, I'm still driving on their roads, I'm still using Edmonton services, I'm just not paying Edmonton taxes," Shivji said.

He said investing in infrastructure is important and rejects candidates who aren't on board with the Valley Line West LRT.

Kiarra Sampson, a school psychologist at Edmonton Public Schools, said she doesn't think keeping taxes where they are is realistic, especially while the city is recovering from the pandemic.

"I would be a little bit worried that some of the services that we use as a city would be decreased or they wouldn't be as efficient as they could be."

@natashariebe