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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. 1 S3 _: g: B" K& J
, f0 Q+ M. p1 r( {$ PEdmontonians 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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: M9 I+ S6 \& Q, @/ |1 \"Looking at this we're talking an 8-10% tax increase," Mandel said in council chambers. `' z2 Q1 b/ {0 F( p. Q" P
0 {- A1 z) h$ M+ P% m* ECity manager Al Maurer confirmed that Mandel's prediction was on the money, based on initial cost estimates
o6 |5 f1 D% r"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 $200 a year. - N' x7 x1 C7 ~" ]
: ]4 i: J$ U4 ^5 f+ Q"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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+ R/ K, d* s) LCoun. Ron Hayter said it's still very early in the process, and he cautioned against getting overly anxious at this point. * a( j @) c; c" `" u
$ f0 b) r' T+ f8 hThe draft budget does not come out until November. + a9 l2 z+ h; v; p9 i! C+ t" D
' q' E8 J# V r" P m: Q- u. y# d"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. " c7 z+ m! r$ F" `1 Z+ G
" T- Z2 t+ S Y" {3 R# S( i"It won't be as bad as some people are making it out."
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Maurer said income from investments and various financial strategies could offset a large hike.
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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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"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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G2 Z2 W' R8 T# z6 E6 zScott Hennig, with the Canadian Taxpayers Federation, said there's no excuse for a double-digit tax increase.
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0 M. v5 H: w6 r; H! p5 ZHe said hikes should be limited to inflation, which is pegged at 5% both this year and next, according to the city. 2 D2 x& `0 q$ X2 P. b
" l* k4 Y3 f4 u" a3 T7 Y: i% L"They're going to hear from a lot of angry taxpayers if they're looking at 10%," Hennig said. $ ]0 s/ L7 m2 F! H
6 H" W( y' Q# a! G: N5 i" x9 P"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." - n; Q6 c, O2 d: h, o2 F
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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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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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' Z# K7 X( q# l1 lTax bills will be mailed May 25 and payments are due June 30. |
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