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Mayor warns of 'scary' tax hike2 J* U) {, c( Q! T S
8 F9 q2 x7 `+ `! U; n* @/ s0 MThink your property taxes are high now? You ain't seen nothing yet.
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8 u& P Q9 I% A& p% AEdmontonians 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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7 J1 M$ _0 b' ` C; {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. . ?8 |. h8 a% Q5 B4 S! V
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"Looking at this we're talking an 8-10% tax increase," Mandel said in council chambers. * W3 F4 g0 Y# O
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City manager Al Maurer confirmed that Mandel's prediction was on the money, based on initial cost estimates
: p$ R5 q1 C% {% M* P- N"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 $200 a year.
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"There's no question costs are going up," said Coun. Michael Phair, who conceded the tax hike "may very well" be in the range predicted by Mandel.
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/ o2 a& E5 N# r* r4 F. xCoun. Ron Hayter said it's still very early in the process, and he cautioned against getting overly anxious at this point. ' E3 a& i: ?& d$ K0 a
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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. $ [5 h, g* c. p) i& a$ G
3 y! R9 ]! }, X/ r0 T: m; ~% l"It won't be as bad as some people are making it out." + I4 n5 ~7 X6 w: [
7 l0 W8 ?/ }! p3 r0 e8 _Maurer said income from investments and various financial strategies could offset a large hike. # c' ?3 j3 u$ T/ ]9 R: E0 ]# p, v
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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. 8 v, ] x8 g: n0 c. V5 ?
+ [$ Z9 ?6 D! O5 U"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 F6 y1 O2 V' G+ ?% k6 `9 BScott Hennig, with the Canadian Taxpayers Federation, said there's no excuse for a double-digit tax increase.
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) V5 q9 H* u* z, mHe said hikes should be limited to inflation, which is pegged at 5% both this year and next, according to the city. & X" I' }. W( u; P7 c) r8 [$ \0 E
) L1 \) Q9 C @0 T. {+ k" c# U) v"They're going to hear from a lot of angry taxpayers if they're looking at 10%," Hennig said. # v3 u+ t, i( r) Z& i2 l- C5 E! X+ D
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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." 8 u0 e- f5 L. B5 n
( m/ y4 y; C2 v5 g* NThe average property tax bill in Edmonton will go up 4.95% this year, the city has said. : F$ C3 C) o8 Q9 c: S4 u- r
. [( _8 j% U! F! o" N9 B6 s5 wThe 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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- h7 C/ u! h& g% hTax bills will be mailed May 25 and payments are due June 30. |
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