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Mayor warns of 'scary' tax hike7 C0 \9 o( [* U R9 T; {
, `6 J# i% z$ iThink your property taxes are high now? You ain't seen nothing yet.
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0 g" J- p% ~8 `- jEdmontonians 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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/ J2 S# L# D* |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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"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
, B" Q! L% Q0 ~, \: u"Given the amount of it, it's going to be scary," the mayor said.
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A hike in that range could cost the average homeowner up to $200 a year. 7 \7 ` ^( s0 y! J
- o. l; B6 w' a V"There's no question costs are going up," said Coun. Michael Phair, who conceded the tax hike "may very well" be in the range predicted by Mandel. 4 }2 D% }) t9 J! H' b m) k
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Coun. Ron Hayter said it's still very early in the process, and he cautioned against getting overly anxious at this point. 8 O; c' p" N7 l, u Q" y7 p. E+ [
% c/ { s; p6 a1 E1 j* l% \The draft budget does not come out until November. % O0 r) _% I7 a
0 Q0 g6 n. M3 p! w"I'm not looking for a major increase next year, at least not too much more than we've already approved for this year," Hayter said. + P! L5 _5 T J) G4 {
" t5 L" j" U1 P% E# R6 W; y"It won't be as bad as some people are making it out." - F! B2 U# w! L1 v7 s( `
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Maurer said income from investments and various financial strategies could offset a large hike. " m8 |* Y h+ k2 S% M5 H
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However, he said there aren't really any city programs that could be cut in order to save a few bucks.
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. R' w- H# u l9 x# |"We've certainly got more demands," Maurer said, noting council still has to find money to fund an improved snow-clearing program.
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Scott Hennig, with the Canadian Taxpayers Federation, said there's no excuse for a double-digit tax increase. 0 u1 m/ U- _) t$ m7 G
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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.
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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. & |( \4 V9 j. @
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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. ! m9 y5 ]% E7 ]: Z( p' W
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Tax bills will be mailed May 25 and payments are due June 30. |
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