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Mayor warns of 'scary' tax hike
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Think 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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4 w6 n% M' c, v6 w+ u+ r. m8 K4 p) gMandel 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. 6 s. X, {+ |; F4 P
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"Looking at this we're talking an 8-10% tax increase," Mandel said in council chambers. ' a0 k& R) ]# K& P
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City manager Al Maurer confirmed that Mandel's prediction was on the money, based on initial cost estimates
$ D3 U3 A4 F2 A; K6 j; {! G, B"Given the amount of it, it's going to be scary," the mayor said.
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! ~3 c( I' M \: z; E9 [A hike in that range could cost the average homeowner up to $200 a year.
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"There's no question costs are going up," said Coun. Michael Phair, who conceded the tax hike "may very well" be in the range predicted by Mandel.
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: W) j* I! D8 ^6 s* u7 n yCoun. Ron Hayter said it's still very early in the process, and he cautioned against getting overly anxious at this point.
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The draft budget does not come out until November. 1 k! F9 x; ^2 X' _
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"I'm not looking for a major increase next year, at least not too much more than we've already approved for this year," Hayter said.
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"It won't be as bad as some people are making it out." - N9 N6 A; D4 J
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Maurer said income from investments and various financial strategies could offset a large hike. 4 K6 H6 k4 P( f
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However, he said there aren't really any city programs that could be cut in order to save a few bucks. . m1 F. ^, Y& y7 I6 n' ]. f# n3 o1 w) b
( ?% i4 [" g1 o) N. K- F"We've certainly got more demands," Maurer said, noting council still has to find money to fund an improved snow-clearing program. " {" v! I4 Q3 y. Q$ y4 ?. d. h
1 z) d* N$ s7 T$ H. {3 VScott Hennig, with the Canadian Taxpayers Federation, said there's no excuse for a double-digit tax increase. " T$ [. j% u5 [6 f6 R
7 W# w/ N* U% X& z: o: l7 vHe 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.
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, }. ^0 k) S; |% B; T"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." ; y* G4 I/ V, Z, i
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The average property tax bill in Edmonton will go up 4.95% this year, the city has said. ! H: x& K3 _: g2 ?2 P6 l
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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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( P0 R! n) O3 ~. \! MTax bills will be mailed May 25 and payments are due June 30. |
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