Largely due to cut backs from the provincial government, Edmonton has been faced with some very difficult questions over the past few years when it comes to its finances.In particular, citizens are deeply concerned that they see their taxes go up and, at the same time, see their services deteriorate.

Two things must happen.

Citizens of Edmonton must be involved in a conversation that allows them to evaluate together what services cost and what the implications are for taxes. We must recognize that an increase in the level and quality of service is perhaps important to people than the level of their taxes. There frustration is that they currently see no real benefit to their tax increases. Talking about services and taxes separately, as we do now, reinforces our confusion and does not allow a real conversation about what citizens truly want. We must examine our services specifically in terms of how much they cost and then decide what is important to us.

We must also be willing to examine the whole question of how the city raises revenue. A tax system works because it is perceived to be fair by its citizens. A good tax system allows the burden to be fairly shared and also can help to reach various policy objectives. Currently, the city's tax system, calculated on market value assessment, is largely controlled by Provincial legislation. If the city is to be able to adapt and flourish, this kind of antiquated and paternalistic relationship with the Provincial government must be changed. The negative effects of market value assessment are most noticeable for those on a fixed income such as seniors. If they live in a neighbourhood where property values significantly increase then their taxes may go up way more than the average. Unless they sell their property (which we do not want them to do) the added property value has no real value for them. Yet there taxes go up often to the breaking point. The further irony is that the city sees no real benefit from this increase either as the increases are averaged out across the city and someone elses taxes will have come down by the same amount. At a time when we are trying to encourage more people to live in the heart of our city, when we want to keep seniors in their homes and keep diversity in neighbourhoods, this is a very counter productive policy.