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Mayor warns of 'scary' tax hike
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! S; D' M7 E2 W) e$ ]Think your property taxes are high now? You ain't seen nothing yet.
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$ W% }7 O0 N, R! |3 l1 ]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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! N- U% E2 e3 r. AMandel 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. 0 H, a- T. p4 ?' K/ ^/ m+ J" ^0 y
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"Looking at this we're talking an 8-10% tax increase," Mandel said in council chambers.
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& O+ ?' }) F) _4 ]1 y/ m3 Y- qCity manager Al Maurer confirmed that Mandel's prediction was on the money, based on initial cost estimates
y. A# Z2 ]2 x0 S5 m' E"Given the amount of it, it's going to be scary," the mayor said.
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A hike in that range could cost the average homeowner up to $200 a year. . S$ m2 b2 Z1 j, |5 F; Q' L) K4 \$ q
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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.
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& U5 {' {8 o5 W2 ~The draft budget does not come out until November. $ P8 E0 i3 q# y; d
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"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.
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( J' i: N b0 w+ V% P! v; L. ]1 t6 O' G"It won't be as bad as some people are making it out."
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1 m/ r' E @- X. b& s8 iMaurer said income from investments and various financial strategies could offset a large hike.
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8 K/ K) t: w6 E1 O4 s7 m2 Y% AHowever, he said there aren't really any city programs that could be cut in order to save a few bucks.
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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.
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Scott Hennig, with the Canadian Taxpayers Federation, said there's no excuse for a double-digit tax increase. $ F) u, c+ a Z4 B5 j. Y9 X0 X9 F
3 g8 Y2 R0 I$ H+ T# ^He said hikes should be limited to inflation, which is pegged at 5% both this year and next, according to the city. + |9 ]3 Q1 W+ }% h
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"They're going to hear from a lot of angry taxpayers if they're looking at 10%," Hennig said. 4 |* \6 A5 S9 l3 ?' O
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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." 5 u8 Z$ f. H$ s- \: ^ F
/ C0 W( `% _, p% P# JThe average property tax bill in Edmonton will go up 4.95% this year, the city has said. & g3 ]( z/ A; x
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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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