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Mayor warns of 'scary' tax hike/ c( v( K6 {- J v. I1 t0 P
. C! I, ~# U# l" bThink your property taxes are high now? You ain't seen nothing yet.
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' F3 H- U( E5 Y1 n# FEdmontonians 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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- M9 y; N' z6 FMandel 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. / Q* F7 f& p1 O( x' Z* v+ S8 q
6 p: x& l& |0 S7 r2 \8 N"Looking at this we're talking an 8-10% tax increase," Mandel said in council chambers.
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! t$ e( x1 {9 S& J& U; [City manager Al Maurer confirmed that Mandel's prediction was on the money, based on initial cost estimates
0 e( t) \+ T* r& |"Given the amount of it, it's going to be scary," the mayor said.
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A hike in that range could cost the average homeowner up to $200 a year. & ?- T# s% c2 v4 ?! t; r6 k
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"There's no question costs are going up," said Coun. Michael Phair, who conceded the tax hike "may very well" be in the range predicted by Mandel. 7 U7 x( a: b( m. k: g. V: Q
5 M7 p, q }/ [0 j! `Coun. Ron Hayter said it's still very early in the process, and he cautioned against getting overly anxious at this point. * m! l- O$ s7 v i3 A3 A9 x% P
8 f o) U7 ?) ?+ ~/ HThe 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." 0 ^: ^- n6 V: W' @3 }& ^
6 A) _, Z* h( U3 g5 ?Maurer said income from investments and various financial strategies could offset a large hike. 4 H( {5 g# o2 H1 D. h
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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. : K' A6 c% X! n1 Z2 J+ W; \. E
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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. $ }) |. q. |! e8 o
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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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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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"They're going to hear from a lot of angry taxpayers if they're looking at 10%," Hennig said. 9 n0 u( x- @& S: ^5 T2 b
% i8 k2 ?% B, b" Z"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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^' J8 V+ e6 x) }: F4 IThe 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.
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Tax bills will be mailed May 25 and payments are due June 30. |
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