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Mayor warns of 'scary' tax hike5 M# Q- r4 N( H' v
( t/ a* H: h6 p5 @Think your property taxes are high now? You ain't seen nothing yet.
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; G4 S+ B. v6 X9 [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.
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! |" @! U! V; n; S6 T"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 estimates1 V! r" F" g2 Q3 c
"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 $200 a year.
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"There's no question costs are going up," said Coun. Michael Phair, who conceded the tax hike "may very well" be in the range predicted by Mandel.
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Coun. Ron Hayter said it's still very early in the process, and he cautioned against getting overly anxious at this point. 2 E- n6 |+ K: n6 N
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The draft budget does not come out until November. 8 z' ^, W2 M& b( c& x& A
2 W" y7 b& {" X) J7 X$ @"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.
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3 h% i( i9 O, f! y: D% u"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. ! V) b: q# q, _; U8 E
+ ]5 w4 m& G5 n0 e$ t! p3 I6 @However, he said there aren't really any city programs that could be cut in order to save a few bucks. 0 ?5 m- Z2 G! `7 k
6 P6 Y& s$ b) ]& F"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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' l7 P- k# l4 ^" y8 |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.
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; C* X9 d- k0 f+ c* y. M& W! W"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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. u; e+ i7 [/ [' R( V7 gThe average property tax bill in Edmonton will go up 4.95% this year, the city has said. % K' w( z9 J9 r& T: Q
' w% v$ r' E& {, mThe 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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