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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. / O7 `/ }- H$ j" ^+ D w
) \3 [' `+ [( l6 mEdmontonians 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. & F+ W! I( v, c# @3 `7 M+ D$ U
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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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$ B* d2 O$ ?' s* c2 {"Looking at this we're talking an 8-10% tax increase," Mandel said in council chambers. 8 f: q1 L, [, ]* k$ s/ g
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City manager Al Maurer confirmed that Mandel's prediction was on the money, based on initial cost estimates5 B' I, [+ [' C5 u3 X3 A% N
"Given the amount of it, it's going to be scary," the mayor said. ( U, z& z1 i1 C% P0 E+ I
& t7 e& B) H. k& {4 aA hike in that range could cost the average homeowner up to $200 a year.
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4 }8 A6 I% v* d# I( r"There's no question costs are going up," said Coun. Michael Phair, who conceded the tax hike "may very well" be in the range predicted by Mandel.
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# U; A$ a& h0 [3 T5 B: `1 ~8 gCoun. Ron Hayter said it's still very early in the process, and he cautioned against getting overly anxious at this point. . `, c! Y7 c; S
- G$ k* d- c' |6 K$ W5 iThe draft budget does not come out until November.
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8 M, U# n d2 f3 D+ f! u9 O"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.
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3 E0 d/ y- j; W$ w# IHowever, 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.
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Scott Hennig, with the Canadian Taxpayers Federation, said there's no excuse for a double-digit tax increase. 3 S5 T5 z, Y/ y! o6 f
) `7 `3 x: K: V/ s: I# M" ?He said hikes should be limited to inflation, which is pegged at 5% both this year and next, according to the city. ; f( i) F, I2 P& h2 ]8 N! {- {" P
; N3 m9 I- G/ X& E, w1 N+ f"They're going to hear from a lot of angry taxpayers if they're looking at 10%," Hennig said. & ^% \ Y/ h4 i8 L* _% {
$ ]# C" C) B/ S( T" J( ]9 L1 ["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." 1 H0 k" k1 A6 B9 A
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The average property tax bill in Edmonton will go up 4.95% this year, the city has said. 1 e7 K9 |5 C# i$ N
2 f% @ A0 C$ R: {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. 2 ^( C& m( K0 ^0 a7 Z' {/ P
3 f1 b7 h6 T7 L E' t% |Tax bills will be mailed May 25 and payments are due June 30. |
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