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Mayor warns of 'scary' tax hike
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/ { O9 j& x9 C n) oThink 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.
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( k* q$ J" D4 [0 X# u aMandel 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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"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
" S% a) ~0 `( q) K2 D. h/ b8 g"Given the amount of it, it's going to be scary," the mayor said. 3 D5 |1 {6 q- B! P4 m
" k: b6 q6 T% J6 |3 q4 NA hike in that range could cost the average homeowner up to $200 a year. $ v5 f v6 c; x: t0 J
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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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. s7 B; `+ q2 bCoun. Ron Hayter said it's still very early in the process, and he cautioned against getting overly anxious at this point.
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" F s' U+ i5 y+ bThe draft budget does not come out until November. , V: r0 Z( c# I+ _$ D' L' h
2 }$ @9 q$ ^) l2 [' Q; I5 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. 0 X/ e; _! }' |$ H$ @* ?( e8 A
; e& f F+ ]# Y$ M1 y _3 ~However, he said there aren't really any city programs that could be cut in order to save a few bucks. 3 b7 `# x' Q$ j/ s- a
1 a$ ^- h5 u0 k! E- ?"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. % A1 e& Z/ Z/ ]2 l
4 o& W7 L2 Q6 e( kHe said hikes should be limited to inflation, which is pegged at 5% both this year and next, according to the city. " Q( x ? f" w: \$ i: K4 Y" n
) D" ] g( w( T" B2 _"They're going to hear from a lot of angry taxpayers if they're looking at 10%," Hennig said. : X0 R( a* F7 C9 L4 s
$ j. K* P* K* b4 u8 L+ ^2 W) n"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." 2 K, K) u6 ?2 ]) t4 i! g" t3 }3 x
% i: w) J: g! e$ j6 sThe 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.
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Tax bills will be mailed May 25 and payments are due June 30. |
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