City council has approved the 2011 budget that includes a 3.85 per cent tax hike for Edmontonians.
Earlier in the week, council voted in favour of fixing up Edmonton's older neighbourhoods instead of limiting the tax hike.
Councillors agreed the program that repairs Edmonton's crumbling roads and cracked sidewalks is important enough to warrant an increase on Edmontonians' tax bill.
Of that 3.85 per cent, 1.5 per cent will go towards the neighbourhood renewal program. Council voted for a 1.5 per cent tax hike for the renewal program, instead of a proposed 2 per cent hike because council wasn't able to spend all the money it set aside for the program last year.
The city says the 2011 program will benefit more than 20 mature neighbourhoods throughout Edmonton.
"I think this budget is trying to deliver the services our citizens asked for. Are you going to make everybody happy? No," said Mayor Stephen Mandel.
The 3.85 per cent hike means a property-tax increase of at least $60 in 2011 for the typical homeowner.
The budget passed 11 to 2 in council chambers Thursday morning. New City Councillor Kerry Diotte was one of two councillors who voted against the budget saying it should have been kept to inflation, which is about 2 per cent.
"I don't think administration was challenged to come in at the rate of inflation they could have and they could have delivered it. This budget hurts people that can least afford it," he said.
The approved tax hike is lower than the 5 per cent administration originally proposed.
Utility rates will also go up by $38 a home for the year. Councillors did debate the rising costs of utilities in the city. As it stands, Edmontonians pay some of the highest utility rates in Canada. Councillors agree moving forward that has to change.
"I don't think we need to continue to raise utility rates as a way of keeping property taxes down," said Coun. Bryan Anderson.
City hall is also ordering the expansion of photo radar to boost revenues by $5 million. Councillors also included more money for transit security officers during off-peak bus service, $136,000 to open those libraries that had been closed on Sundays between September and May, and $462,000 will be allocated to boost grass mowing on public spaces.
With files from Scott Roberts
