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Mayor warns of 'scary' tax hike
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. m7 V1 V* j+ e1 I9 sThink your property taxes are high now? You ain't seen nothing yet. % h! t$ p/ w2 k7 C% ~& N0 s
) C. h) \/ k. F& I9 z( _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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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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: t) }# }( |" T% N# ?( J& ^: k4 G"Looking at this we're talking an 8-10% tax increase," Mandel said in council chambers. ' O5 Q3 Z8 {& }3 w3 U9 B' r
1 L3 b& j& _/ |' Q, \City manager Al Maurer confirmed that Mandel's prediction was on the money, based on initial cost estimates
/ C' j! ~ A) ?"Given the amount of it, it's going to be scary," the mayor said.
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7 W! L2 \# r9 E3 `6 V9 O8 cA hike in that range could cost the average homeowner up to $200 a year. 5 G) z7 F, t Y* j. E
; K3 r, R. R7 F6 H"There's no question costs are going up," said Coun. Michael Phair, who conceded the tax hike "may very well" be in the range predicted by Mandel. ) ~" `5 a$ H1 c( ?+ j |6 s h2 \
1 J6 e+ s2 R' |/ {Coun. Ron Hayter said it's still very early in the process, and he cautioned against getting overly anxious at this point. + U& ?9 Z2 V$ q) ?$ h& O. t- S
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The draft budget does not come out until November.
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3 c3 r: Q4 ?# f ^5 Z3 e: t"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. - G6 d2 P0 K( N7 V1 K
3 e. ?% E* Q# m6 ~" T"It won't be as bad as some people are making it out."
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) R4 j0 N3 K$ y6 N+ A- vMaurer said income from investments and various financial strategies could offset a large hike. , X0 | E& U; d; V% ^
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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. 3 \8 I9 x# a+ \' x2 W7 Y' i6 |" s
! j5 f9 g* g* J4 _$ ["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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% J$ o, o! Z" @' tScott Hennig, with the Canadian Taxpayers Federation, said there's no excuse for a double-digit tax increase. / w+ c! S/ o" k& S! T8 q
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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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: i- M6 H. j9 Z3 i( G/ c0 r% L"They're going to hear from a lot of angry taxpayers if they're looking at 10%," Hennig said.
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3 q- a0 R+ y; s( K4 F, O0 J" k"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." s) O- }6 {' v% @& x
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The average property tax bill in Edmonton will go up 4.95% this year, the city has said. 9 D; q4 g5 D2 i ^1 i
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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. ( I5 C8 P( C1 N: d# u1 K
8 `( V! R/ w; l. B9 E" q; WTax bills will be mailed May 25 and payments are due June 30. |
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