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Mayor warns of 'scary' tax hike# a: h+ K- w' x
3 |8 s+ @5 W2 a- o F% p2 M) D( ZThink your property taxes are high now? You ain't seen nothing yet.
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Edmontonians could face a "scary" tax hike of up to 10% next year, Mayor Stephen Mandel said. That would be the highest property tax increase since the 1980s. % D" t# \; U0 ^. M) G8 W0 {2 K- Z
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Mandel tossed out the figure yesterday following a presentation by administration that outlined the intense economic pressures the city is facing as a result of Alberta's economic boom.
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+ z; v s, O4 ~! j) G"Looking at this we're talking an 8-10% tax increase," Mandel said in council chambers. 2 n- R0 n6 y- U
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City manager Al Maurer confirmed that Mandel's prediction was on the money, based on initial cost estimates
, I/ x1 y3 C6 ^"Given the amount of it, it's going to be scary," the mayor said. : ]! n) Z( i6 H" ^) ^6 [) J5 ~0 T! T, `
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A hike in that range could cost the average homeowner up to $200 a year.
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"There's no question costs are going up," said Coun. Michael Phair, who conceded the tax hike "may very well" be in the range predicted by Mandel.
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Coun. Ron Hayter said it's still very early in the process, and he cautioned against getting overly anxious at this point. . f. W- b; z7 r; Y8 [5 O
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The draft budget does not come out until November. 4 ?& @6 M- }/ v8 o
- ]- w1 c$ d3 g2 @9 f- ]"I'm not looking for a major increase next year, at least not too much more than we've already approved for this year," Hayter said. / R9 _4 M( C7 f" D6 o
) @2 q/ q4 f: X/ _; d"It won't be as bad as some people are making it out."
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8 e @ P& y( G6 a7 ~: WMaurer said income from investments and various financial strategies could offset a large hike. 0 p/ o( F! Q8 Q+ W; M
5 C% b6 B* h8 n: K% D+ hHowever, he said there aren't really any city programs that could be cut in order to save a few bucks. % q' T& [" N* ? T& ~
# @5 K0 H5 G# ^8 j9 ~ k- A"We've certainly got more demands," Maurer said, noting council still has to find money to fund an improved snow-clearing program.
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8 r ^! l' J+ ~! t) ]Scott Hennig, with the Canadian Taxpayers Federation, said there's no excuse for a double-digit tax increase.
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% a) n2 Z: B- [# I- ?/ x2 I- W) c( cHe said hikes should be limited to inflation, which is pegged at 5% both this year and next, according to the city.
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6 ]! T6 s9 c' A; E9 u"They're going to hear from a lot of angry taxpayers if they're looking at 10%," Hennig said.
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"I don't know what some of these members of council are going to be able to say to some pensioner who got a 2% hike in their pension."
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8 p. C4 z/ b) r2 Q# fThe average property tax bill in Edmonton will go up 4.95% this year, the city has said.
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The tax on homes will go up higher than average - about 7%. The figures include both municipal tax and the provincial education tax, which the city collects.
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1 |# u3 Q v; O4 `Tax bills will be mailed May 25 and payments are due June 30. |
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