A city councillor's attempt to cap property tax increases over the next two years has been shot down.
Coun. Len Bracko on Monday proposed putting a ceiling on operating spending increases to a maximum of 1.5 per cent a year for the next two years. The move would in turn keep property tax rates from increasing by more than 1.5 per cent a year in 2011 or 2012.
Bracko defended the move for a variety of reasons, but said his main goal is for a more sustainable municipality.
In December, council agreed to increase municipal property taxes by 2.89 per cent for homeowners in 2010 and 3.19 per cent for businesses — slightly higher than the original draft proposed by city administration.
The veteran councillor, who has done his own research into federal and provincial debt levels, said about 25 per cent of St. Albertans will be living on a pension in 20 years.
If property taxes continue to increase at an uncontrolled rate every year, Bracko said it would become difficult for the aging population to continue living in St. Albert.
Cut spending
"Right now we are in recessionary times and that doesn't appear to be disappearing, as we look at both the budgets of the provincial and federal government. There will be cuts — not increases. Maybe it's time municipalities should be cutting back too," said Bracko.
"We really have to move forward to control our spending and reduce it. I believe we can find ways to cut costs."
Raising the municipal portion of property taxes by 1.5 per cent for the next two years would provide about $1 million of new revenue per year.
Some members of council agreed with the tax cap in theory, but were reluctant to set ground rules for future councillors.
"I am supportive of the idea of minimum tax increases. I just don't believe this is the time to set this direction, not this distinctly anyways," said Coun. Lorie Garritty, who noted the provincial and federal governments have yet to unveil their respective budgets.
Coun. James Burrows said he's never been in favour of a three-year operating budget due to the ever-changing financial landscape.
But he isn't supportive of capping the operating budget either given the economic times of uncertainty.
"If we accept this motion, then we've really boxed ourselves in," he said. "We have to be patient and have a better understanding of what the economy is going to be."
The motion was defeated by a 5-2 vote, with only Coun. Gareth Jones voting with Bracko.
Although it did not succeed, St. Albert Taxpayers Association president Lynda Flannery applauded Bracko's proposal.
After years of watching property taxes rise far higher than the rate of growth, Flannery said the era of continuous spending has to come to an end.
"We continue to live in highly uncertain economic times where recovery is elusive. This measure would provide some certainty at least on some expenditures funding," said Flannery. "St. Albert continues to have the highest property taxes in Alberta. We can't continue down that path."
