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Mayor warns of 'scary' tax hike3 E& J* l, W/ g8 M5 w
- c9 Y* T2 q4 V; |, [Think your property taxes are high now? You ain't seen nothing yet.
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- Y$ \& Y9 k0 m$ H& }9 AEdmontonians 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. - X5 Q7 @* e/ J3 _
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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! j7 T; Z, `2 a6 e"Looking at this we're talking an 8-10% tax increase," Mandel said in council chambers.
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City manager Al Maurer confirmed that Mandel's prediction was on the money, based on initial cost estimates# `4 x2 P) ]; y d4 S0 P$ u7 F F
"Given the amount of it, it's going to be scary," the mayor said. " H) X6 S* j0 E! N Z
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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. - _% k, N w' g& t
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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. & s" o4 @+ X1 b; ^) o
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The draft budget does not come out until November. $ K! u$ A* g! K. ~7 T4 t
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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. & |( @0 k3 `! x
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"It won't be as bad as some people are making it out."
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& X$ ^$ a- t& J1 zMaurer said income from investments and various financial strategies could offset a large hike.
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9 X8 J+ `( t' ~) s5 I. jHowever, he said there aren't really any city programs that could be cut in order to save a few bucks.
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Q! g6 C: K8 H9 q" o"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. / A. Z$ a1 j6 ?8 i
4 w: g/ k2 Q4 l# v4 QHe said hikes should be limited to inflation, which is pegged at 5% both this year and next, according to the city. 3 V& d2 h' h, r" I! B* B
9 N: s/ D. J! r"They're going to hear from a lot of angry taxpayers if they're looking at 10%," Hennig said. 6 T4 H0 y9 o4 B% b6 l
* M4 R, v! W! \, z9 |. i1 f"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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- g- c" P8 {$ l. K$ [8 aThe 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. / G' C) E: I. o/ |* z' z7 `
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Tax bills will be mailed May 25 and payments are due June 30. |
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