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Mayor warns of 'scary' tax hike# B$ \& D/ }2 F' t3 `8 B8 R6 P' J
5 O. T# u y6 o: Q) vThink your property taxes are high now? You ain't seen nothing yet.
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+ Q5 X5 F" T6 h) ?( y- bEdmontonians 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. " Z: g5 V+ M: O* s8 \
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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. , M5 p+ X0 X& g' Z) ]7 t
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"Looking at this we're talking an 8-10% tax increase," Mandel said in council chambers. & m/ \6 Q9 q$ p |0 ?! y! E9 U
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City manager Al Maurer confirmed that Mandel's prediction was on the money, based on initial cost estimates
: E7 ]" M q* z. J" _ X" `% k"Given the amount of it, it's going to be scary," the mayor said. - x C0 x+ U7 y L
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A hike in that range could cost the average homeowner up to $200 a year. % S, h* ^1 {. V( r8 j9 E; w7 d
Q) c' ]; V4 s3 D1 ^"There's no question costs are going up," said Coun. Michael Phair, who conceded the tax hike "may very well" be in the range predicted by Mandel.
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# v" c2 x" U$ Y: i0 m4 jCoun. Ron Hayter said it's still very early in the process, and he cautioned against getting overly anxious at this point. + m% c5 D4 X& k3 r& @' y
- k/ ^6 E- G1 U/ |* XThe 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." 8 f! ~1 l9 t6 w7 p3 ?9 F
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Maurer said income from investments and various financial strategies could offset a large hike. 0 B% H2 m2 |, {2 l, i) g
- l' N$ q$ R# x. THowever, he said there aren't really any city programs that could be cut in order to save a few bucks. / G/ n+ o! _$ O" B9 |' P
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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. / H0 y$ ^, w! }) L9 ]' r1 c T9 Q
$ ^ f) b% M) G* V( t$ O5 ^Scott Hennig, with the Canadian Taxpayers Federation, said there's no excuse for a double-digit tax increase. 7 o9 u! S$ R2 h3 G% \
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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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4 D( Z9 \! h0 N3 F"They're going to hear from a lot of angry taxpayers if they're looking at 10%," Hennig said.
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0 U5 j( h9 d* t9 `% L! Q"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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) G5 G2 ~9 A. CThe 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. 4 Q( k& V3 _- t! a9 H( U, V5 p, g
- G/ t' ]% y# UTax bills will be mailed May 25 and payments are due June 30. |
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