OTTAWA: Businesses have had to make major adjustments in light of the economic downturn, and the city should do the same, according to the Edmonton Chamber of Commerce.
Chamber president Janet Riopel told councillors they should strive to freeze property taxes for as long as it takes for the economy to rebound.
“We are simply asking the city to take the same measures that many businesses are being forced to take,” Riopel said at a ciity council budget meeting on Monday.
City administration projects a 4.9-per-cent tax increase for each of the next three years. Riopel said the chamber does not want to see layoffs at the city or fewer services, but suggested a hiring freeze would be appropriate.
“We are calling for a pragmatic, no-frills budget that focuses on delivering essential services more efficiently,” she said.
She told council the cumulative tax increases, between the city, the province and the federal government are “pushing some businesses to the tipping point.”
City administration have already found $29.9 million in savings for 2016. Coun. Ben Henderson said finding more efficiencies will not keep taxes down.
“I want to take off the table that magically we’re going to be able to keep the level of service we have right now without having a tax increase,” he said.
Mayor Don Iveson said it’s not possible for council to work within the existing tax rate, because the city is growing, new facilities must be staffed, and union wage increases must be paid.
“Help me to understand how to make wine out of water, or straw into gold,” he said in response to the chamber’s suggestion.
Iveson said he does want to shrink the tax increase. Rather than asking for “indiscriminate cuts,” he suggested council first review all the programs it offers.
Council plans to launch a review to find out if there are services that are no longer as beneficial as they once were. The city hasn’t done that kind of review since 1997.
Coun. Michael Oshry said he thinks that will give council a good idea of where to cut back, but the review won’t be finished in time for the 2016 budget.
He said while council should focus on core services, there is room for extra programs, as long as council cuts back in other areas.
While the chamber urged the city to lower spending, 24 other speakers attended the public hearing to ask for funds in the upcoming budget.
The requests ranged from reconciliation efforts with First Nations people, persevering the river valley, to celebrating Canada’s 150th anniversary.
