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Mayor warns of 'scary' tax hike
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3 ^# o/ @. c' d' H( GThink your property taxes are high now? You ain't seen nothing yet. ! \. B+ L) Y# e
" @1 W3 i, T: lEdmontonians 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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. F [6 y! T. x1 L2 _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. / O2 M, J' h1 V8 w
( J4 L' T5 G2 Y- u' j% @"Looking at this we're talking an 8-10% tax increase," Mandel said in council chambers. ! ^1 l. C+ m( m5 V) E. f8 q% B$ J
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City manager Al Maurer confirmed that Mandel's prediction was on the money, based on initial cost estimates h: Y8 W: ~& e7 t- X) L
"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 $200 a year.
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+ T0 ?6 r, C8 g8 p* e o"There's no question costs are going up," said Coun. Michael Phair, who conceded the tax hike "may very well" be in the range predicted by Mandel. # I& g; S4 h, t
- v ?0 s1 X. D$ g+ h ?* ~" OCoun. 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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6 ^6 r- Z4 ]: M+ [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."
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Maurer said income from investments and various financial strategies could offset a large hike. : s7 d6 c% T/ a; Z: {
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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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" z- H4 T' c5 v& z"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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- m- t* u( X h3 \Scott Hennig, with the Canadian Taxpayers Federation, said there's no excuse for a double-digit tax increase. # }$ O4 s# o& _: L8 {2 ~
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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. 7 \- r r5 y* [- J! N' a
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"They're going to hear from a lot of angry taxpayers if they're looking at 10%," Hennig said. 3 y3 g3 ^5 J, ?7 m' q+ i
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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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The average property tax bill in Edmonton will go up 4.95% this year, the city has said.
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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. 7 @- _5 }+ R4 ^6 p; E
7 z! y9 ?( U3 ^* z5 ?1 H# g( OTax bills will be mailed May 25 and payments are due June 30. |
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