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Mayor warns of 'scary' tax hike A% H+ ]; r# k) G/ H; I( c9 j
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Think your property taxes are high now? You ain't seen nothing yet.
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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.
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! u: n. u# H& ~" U. s; L- K" A MMandel 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. 6 V3 ]$ f1 m: e7 u1 ~
! {% a% c+ Z& `- Q# ?"Looking at this we're talking an 8-10% tax increase," Mandel said in council chambers. : f. L: z) L+ O" [" w
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City manager Al Maurer confirmed that Mandel's prediction was on the money, based on initial cost estimates Y8 f+ V; i9 {' U
"Given the amount of it, it's going to be scary," the mayor said. - |* J: ], A, @1 @ k% V5 O3 V
. C; }1 M' X# ?! _6 R5 }2 Q% ^A hike in that range could cost the average homeowner up to $200 a year.
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0 Q7 d- ~, a. H+ D Z4 n3 R0 g: {"There's no question costs are going up," said Coun. Michael Phair, who conceded the tax hike "may very well" be in the range predicted by Mandel.
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* q6 a T) D3 g" X* {+ Z1 hCoun. Ron Hayter said it's still very early in the process, and he cautioned against getting overly anxious at this point.
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3 n! @; _) r5 y: X/ t& Q9 D: hThe draft budget does not come out until November.
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8 E7 W& Z/ Z0 Z% R6 m2 g"I'm not looking for a major increase next year, at least not too much more than we've already approved for this year," Hayter said.
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"It won't be as bad as some people are making it out."
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Maurer said income from investments and various financial strategies could offset a large hike. * ~& A* p0 j* E
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However, he said there aren't really any city programs that could be cut in order to save a few bucks.
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"We've certainly got more demands," Maurer said, noting council still has to find money to fund an improved snow-clearing program. - y& I( ~5 L2 M% T* U4 C
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Scott Hennig, with the Canadian Taxpayers Federation, said there's no excuse for a double-digit tax increase. 1 E, t" o& D3 V, Z# W" u% w
4 p* Z, g0 _0 \0 ^4 _3 jHe said hikes should be limited to inflation, which is pegged at 5% both this year and next, according to the city.
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( b" X) q# h: d; R, d- j3 j. }5 K"They're going to hear from a lot of angry taxpayers if they're looking at 10%," Hennig said. % F( b& q$ K- K/ l
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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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3 _% _6 b% Z9 Z. l) t" tThe average property tax bill in Edmonton will go up 4.95% this year, the city has said.
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. R/ r1 h/ v2 C5 R0 \5 o+ GThe 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. ; e, c6 y' h6 U2 n: z" S! z
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Tax bills will be mailed May 25 and payments are due June 30. |
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