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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. Z+ U0 L6 r6 o$ A8 s, M8 d1 S2 b" S
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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. 9 D+ L: m# e) x: Q2 D% q) L% b
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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. 9 @ N6 o/ s% @2 Y
* E! V, S5 [. I2 c"Looking at this we're talking an 8-10% tax increase," Mandel said in council chambers. 8 p, }7 `3 o* t4 l
5 @+ Y: u. r) `/ o* TCity manager Al Maurer confirmed that Mandel's prediction was on the money, based on initial cost estimates) {* r2 @" h+ K% E2 C" { c5 l
"Given the amount of it, it's going to be scary," the mayor said.
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4 j: F6 q6 b2 E# y5 a Q4 aA hike in that range could cost the average homeowner up to $200 a year. # n" J; \, T+ u4 b' i& U8 p
& `) J/ w6 ]' s! a2 Z1 r+ 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. & G6 W% J5 Z1 d: |
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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. / b; s& z2 U7 G/ a# L
( H, t/ P7 @, {7 B( ~The draft budget does not come out until November. 5 a- K1 o6 m/ z2 F. p/ i A1 Y1 @
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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. 9 B0 U( R( P( e7 F
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"It won't be as bad as some people are making it out." 7 }8 H* H' l" ~" Q5 {
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Maurer said income from investments and various financial strategies could offset a large hike.
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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. ) ^# Q8 f1 |" W
2 b# C9 |2 j" b% ?"We've certainly got more demands," Maurer said, noting council still has to find money to fund an improved snow-clearing program. 8 u* T* r7 M1 T. A
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Scott Hennig, with the Canadian Taxpayers Federation, said there's no excuse for a double-digit tax increase.
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/ ^* H: v6 L" D" l6 v0 `0 aHe said hikes should be limited to inflation, which is pegged at 5% both this year and next, according to the city. # a1 |% o7 n* d, @/ t/ o* w8 J0 R& g
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"They're going to hear from a lot of angry taxpayers if they're looking at 10%," Hennig said.
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/ f) \# G7 ?' M2 F! _; f3 V! A"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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2 ]+ M7 A9 ^' ^: |- I* xThe 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 o2 C `0 _* W2 w
8 p$ e, E- Z( \3 z& L2 ~Tax bills will be mailed May 25 and payments are due June 30. |
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