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Mayor warns of 'scary' tax hike/ N1 f. Z0 i+ O1 r2 A
6 h# |. G" _( M* QThink your property taxes are high now? You ain't seen nothing yet. 6 t, ]* z- Y0 f% h5 o
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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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4 ^" f: h9 V0 s5 \: V7 NMandel 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( C: L& s, M6 d% H
"Given the amount of it, it's going to be scary," the mayor said. : B) r9 L' @+ l- y( h* j
% A, ?' O3 R7 F3 s5 T, d/ S+ y, RA hike in that range could cost the average homeowner up to $200 a year.
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"There's no question costs are going up," said Coun. Michael Phair, who conceded the tax hike "may very well" be in the range predicted by Mandel.
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3 \& d7 J3 E. h, K8 H* Y a9 ]" |! PCoun. Ron Hayter said it's still very early in the process, and he cautioned against getting overly anxious at this point.
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1 C7 e4 }+ O$ I( H4 \$ F; _The draft budget does not come out until November.
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! E7 m& m0 X5 A7 W# y! W' h( Y"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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/ i0 b, W5 g" }1 D4 I5 jMaurer said income from investments and various financial strategies could offset a large hike. 3 L; h' A' X0 C9 W
, G, e5 e5 h" q* T: K; RHowever, he said there aren't really any city programs that could be cut in order to save a few bucks. 5 p$ y6 E4 }: l$ p
r; `' r' ^1 X: [& e& c4 D"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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* L; D! w3 u( dScott Hennig, with the Canadian Taxpayers Federation, said there's no excuse for a double-digit tax increase. : @/ _) O$ `) z# \) y5 I
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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. 5 D4 U+ V1 R/ ~" l7 ]1 ]0 _) q$ Y
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"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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b1 R" ^8 l$ x, q; e; w+ oThe 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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