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Mayor warns of 'scary' tax hike# q# p+ v9 p/ w y P
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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. 3 g" N% I" `1 _ _& ^% @. d
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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. # l* d3 D$ @7 e$ u) i1 ?
+ Z$ M1 }) w5 k"Looking at this we're talking an 8-10% tax increase," Mandel said in council chambers. . Y# R3 L) M& q+ B- ]" M
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City manager Al Maurer confirmed that Mandel's prediction was on the money, based on initial cost estimates8 ~1 E8 N: C, x
"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 $200 a year.
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"There's no question costs are going up," said Coun. Michael Phair, who conceded the tax hike "may very well" be in the range predicted by Mandel.
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Coun. Ron Hayter said it's still very early in the process, and he cautioned against getting overly anxious at this point. w" ~& T% I9 r% b7 d1 g7 f
* l$ P$ l7 W; Y+ ?The draft budget does not come out until November. * H# a% c9 P7 t7 f' Z
( E2 Q( ^9 ?, v"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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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. ; s0 ?$ `& `2 f. o. S* C
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Scott Hennig, with the Canadian Taxpayers Federation, said there's no excuse for a double-digit tax increase. # ?* M2 z0 {1 C' B
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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. 8 r& n. N3 m8 w% c& I
; M' m& f% ~) j4 R1 s, p4 {"They're going to hear from a lot of angry taxpayers if they're looking at 10%," Hennig said.
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9 D6 V! o+ w0 i! U) N( H6 U( E0 u"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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0 D# i( A" N! WThe average property tax bill in Edmonton will go up 4.95% this year, the city has said. $ \' S# j# p# K9 }+ N8 w
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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.
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& {& H2 K2 @4 x8 rTax bills will be mailed May 25 and payments are due June 30. |
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