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Mayor warns of 'scary' tax hike$ c/ O/ F3 {2 q! V* p. j
; k2 E7 J( q( p2 b; @& e- EThink your property taxes are high now? You ain't seen nothing yet. 8 E) C3 f9 s$ f1 R @$ _
) R7 d; \* I$ C( Z: _. o- |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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* _1 l$ r& Z- |( R* ZMandel 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. - C* O9 D* p* u
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City manager Al Maurer confirmed that Mandel's prediction was on the money, based on initial cost estimates: S+ O( k+ k7 }+ s# K+ m# ~( E1 a
"Given the amount of it, it's going to be scary," the mayor said.
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. y" K/ l, M) g$ DA hike in that range could cost the average homeowner up to $200 a year. ! x9 [( E% A& Q: N( S c3 {' ^
; t W& G3 E8 o D* h"There's no question costs are going up," said Coun. Michael Phair, who conceded the tax hike "may very well" be in the range predicted by Mandel.
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Coun. Ron Hayter said it's still very early in the process, and he cautioned against getting overly anxious at this point. # t2 b7 } @" j, m) z$ N
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The draft budget does not come out until November. % F$ z) ^$ H; L: @! C0 p
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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. - K; F% s+ `9 ~1 @2 K l* u9 ?1 b' d2 x
, V L: Y+ X# F) W) t+ \* Z"It won't be as bad as some people are making it out." * g ?( ?4 G) Y+ _. V
; j2 p, i2 U# S" H% R- p' \Maurer said income from investments and various financial strategies could offset a large hike.
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0 R; s- X" f1 P* Q- u) rHowever, 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.
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Scott Hennig, with the Canadian Taxpayers Federation, said there's no excuse for a double-digit tax increase. " D# F. f2 d% h# n7 K" ?& O: E
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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. % @2 Q# g, [% h, \5 q. Z3 \/ y
# c$ v0 z2 d" Y9 q2 g/ [- _& `2 q"They're going to hear from a lot of angry taxpayers if they're looking at 10%," Hennig said.
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: K% ^* g# \' r0 U5 `"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." 9 ^% N1 o3 e# s" Y! S) G: N
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The average property tax bill in Edmonton will go up 4.95% this year, the city has said. 7 E7 {2 d" W* U0 i: V
' Y8 L0 l! e% 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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