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Mayor warns of 'scary' tax hike
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% b5 A3 d7 ?: n# L+ s6 y3 bThink your property taxes are high now? You ain't seen nothing yet. ' e- D0 `* [9 L$ T9 n E
% M d8 L4 _9 @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.
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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. 2 f# q# I, |, m0 f/ h* y
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"Looking at this we're talking an 8-10% tax increase," Mandel said in council chambers. $ _7 b4 C% l* L
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City manager Al Maurer confirmed that Mandel's prediction was on the money, based on initial cost estimates
# ]/ k4 K2 }# F8 X& C i"Given the amount of it, it's going to be scary," the mayor said.
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! f1 R9 P: O& l! yA hike in that range could cost the average homeowner up to $200 a year. - Q+ i w% \& l+ N2 M! S
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"There's no question costs are going up," said Coun. Michael Phair, who conceded the tax hike "may very well" be in the range predicted by Mandel.
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2 U& [, A% \8 G/ a. jCoun. Ron Hayter said it's still very early in the process, and he cautioned against getting overly anxious at this point. - g$ {3 a3 _9 M9 t+ g6 s
- I1 ]% b1 h* H9 oThe draft budget does not come out until November. ( u( b. V, W* _4 \: S
6 k' Z( ?0 v9 r# b- i8 x"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. 3 M1 @: ^& ^ M7 Z3 l7 r7 l
, a! t- _5 O, h"It won't be as bad as some people are making it out."
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Maurer said income from investments and various financial strategies could offset a large hike. * N2 J; G! Z! ?* k2 S
; K, e/ P/ F2 S8 z4 iHowever, he said there aren't really any city programs that could be cut in order to save a few bucks. 6 J) z0 `; P, S( v$ n3 T8 N
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"We've certainly got more demands," Maurer said, noting council still has to find money to fund an improved snow-clearing program. ! t: B2 L+ D+ a( P/ C
- z3 c0 X3 z9 G S5 u- \Scott Hennig, with the Canadian Taxpayers Federation, said there's no excuse for a double-digit tax increase.
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He said hikes should be limited to inflation, which is pegged at 5% both this year and next, according to the city. + l& G% w" k5 w1 c; B. H+ }* i7 [
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"They're going to hear from a lot of angry taxpayers if they're looking at 10%," Hennig said.
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; k$ t# S/ Z: W" u' y1 i% m1 ~* Z"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." * v% N4 `9 E W4 o( G: E
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The 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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Tax bills will be mailed May 25 and payments are due June 30. |
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