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Mayor warns of 'scary' tax hike
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& H: L @1 A0 W0 T1 ~% `, VThink your property taxes are high now? You ain't seen nothing yet.
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6 t! h7 h) y7 b9 r( s$ jEdmontonians 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. % Z; q( g! H! y; ]# V* k
2 h: d; p' U# P/ @8 N! cMandel 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. 4 ~- [9 N k" o. ?7 s+ f0 S, o1 }
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"Looking at this we're talking an 8-10% tax increase," Mandel said in council chambers. , T+ D. f# n9 o, }8 ?
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City manager Al Maurer confirmed that Mandel's prediction was on the money, based on initial cost estimates
) `, Z3 o. V" E8 |' u% n"Given the amount of it, it's going to be scary," the mayor said. + z& G9 p5 Q4 E7 N. a% ]) X
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A hike in that range could cost the average homeowner up to $200 a year. # c H# R' N5 X/ }! G5 E# ]
/ d9 H5 k* n; a5 Q) e2 U- S"There's no question costs are going up," said Coun. Michael Phair, who conceded the tax hike "may very well" be in the range predicted by Mandel.
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Coun. Ron Hayter said it's still very early in the process, and he cautioned against getting overly anxious at this point.
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The draft budget does not come out until November.
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"I'm not looking for a major increase next year, at least not too much more than we've already approved for this year," Hayter said.
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"It won't be as bad as some people are making it out." # E- H! i3 R5 u" N2 {4 Y5 H
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Maurer said income from investments and various financial strategies could offset a large hike.
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However, he said there aren't really any city programs that could be cut in order to save a few bucks.
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: a3 ^& H& ]3 [" `"We've certainly got more demands," Maurer said, noting council still has to find money to fund an improved snow-clearing program.
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Scott Hennig, with the Canadian Taxpayers Federation, said there's no excuse for a double-digit tax increase.
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; l# x8 `+ k4 X3 HHe said hikes should be limited to inflation, which is pegged at 5% both this year and next, according to the city. ; q# @4 p' Q: z& @' j' d9 i+ F+ p* x
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"They're going to hear from a lot of angry taxpayers if they're looking at 10%," Hennig said. ' X% a$ x0 y! b4 b0 J$ ^ G: N
4 a3 b+ c' L2 E4 ], _4 ^"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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The average property tax bill in Edmonton will go up 4.95% this year, the city has said. ' H4 U- n; f) L6 [% l
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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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