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Mayor warns of 'scary' tax hike
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Think your property taxes are high now? You ain't seen nothing yet. 3 p: S- n# F( T6 O+ R; [/ S
, }" |: h( Z1 B1 B3 ?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. $ H$ v, B: ~! i
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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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"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
! P1 N/ \% V' t$ c& Y4 r"Given the amount of it, it's going to be scary," the mayor said. , w' t6 W: U+ I6 h; j+ O4 J
) m8 {" c2 M* W. Y% z2 lA hike in that range could cost the average homeowner up to $200 a year.
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"There's no question costs are going up," said Coun. Michael Phair, who conceded the tax hike "may very well" be in the range predicted by Mandel. ; b" A' S8 {2 F" A2 h' E
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Coun. Ron Hayter said it's still very early in the process, and he cautioned against getting overly anxious at this point.
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The draft budget does not come out until November.
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"I'm not looking for a major increase next year, at least not too much more than we've already approved for this year," Hayter said.
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4 a8 C" Y: d- `& B8 g# a"It won't be as bad as some people are making it out."
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Maurer said income from investments and various financial strategies could offset a large hike. 6 o0 T3 I: S% P' x* m* B8 K
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However, he said there aren't really any city programs that could be cut in order to save a few bucks. 4 }4 s! Q9 k2 P
5 B2 k6 E/ g; e5 U6 a/ `"We've certainly got more demands," Maurer said, noting council still has to find money to fund an improved snow-clearing program.
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2 X# E; r( c/ ]# ]Scott Hennig, with the Canadian Taxpayers Federation, said there's no excuse for a double-digit tax increase. / A/ y8 {5 {% ] ] Y
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He said hikes should be limited to inflation, which is pegged at 5% both this year and next, according to the city.
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1 q3 l; D1 o( y- _" Q"They're going to hear from a lot of angry taxpayers if they're looking at 10%," Hennig said. ' \5 v0 q. u8 k$ c, @
7 D& s4 O* O8 C6 |0 i"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." 4 _5 S. ]8 l; B; \, m
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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 o: v1 b& c5 x( Q: F
8 y1 w! r! x6 P$ S! Z. R. @8 YTax bills will be mailed May 25 and payments are due June 30. |
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