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Mayor warns of 'scary' tax hike
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0 G S9 S5 _$ G* J! PThink your property taxes are high now? You ain't seen nothing yet.
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8 X) w: W7 Z% pEdmontonians 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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$ v$ L% c; g% a+ 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.
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- Z% F7 b c$ i8 |/ v, Z"Looking at this we're talking an 8-10% tax increase," Mandel said in council chambers.
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City manager Al Maurer confirmed that Mandel's prediction was on the money, based on initial cost estimates$ a" I0 h* h, e3 M2 v
"Given the amount of it, it's going to be scary," the mayor said. " Q& ^) ?5 Z$ ^2 T+ w
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A hike in that range could cost the average homeowner up to $200 a year.
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, |1 Z5 B* _0 g4 L6 R3 `"There's no question costs are going up," said Coun. Michael Phair, who conceded the tax hike "may very well" be in the range predicted by Mandel. 1 d0 ~1 G- m. b* c& @6 F; v3 Q
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Coun. Ron Hayter said it's still very early in the process, and he cautioned against getting overly anxious at this point. & T2 V, L. K9 K1 [) M0 f* ~
+ c% \2 t% n) @: q cThe draft budget does not come out until November.
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% E; m8 D3 x2 f0 `# c) D! C"I'm not looking for a major increase next year, at least not too much more than we've already approved for this year," Hayter said. - T. q3 |. j# _& O+ R2 ^- v% a3 b
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"It won't be as bad as some people are making it out." ' m6 D& Y0 ^6 k
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Maurer said income from investments and various financial strategies could offset a large hike.
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/ l |( C9 w! BHowever, he said there aren't really any city programs that could be cut in order to save a few bucks.
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2 J2 a6 A: K% d E"We've certainly got more demands," Maurer said, noting council still has to find money to fund an improved snow-clearing program.
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5 d2 I$ {4 G2 g0 @% q8 y- PScott 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.
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"They're going to hear from a lot of angry taxpayers if they're looking at 10%," Hennig said. , |8 P P _( f" ?' X* b2 ?; W$ g
+ h" O) z" X) P& V) 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." 9 b$ R' Q- v( q8 I n" {, e( t
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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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/ K1 S( G2 ^2 j% hThe 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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% D# j$ H4 L$ J) }3 @: A d& {Tax bills will be mailed May 25 and payments are due June 30. |
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