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Mayor warns of 'scary' tax hike
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$ Y+ y! e; B7 ^# J* cThink your property taxes are high now? You ain't seen nothing yet. $ r+ s! O: Q% @5 m3 J5 F" S
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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. 4 z9 O! @! t: A: y
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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. ' D' \: l5 l5 X! O5 d6 d; \0 M1 |- H
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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
# `! V! h. N* }9 [6 C: @"Given the amount of it, it's going to be scary," the mayor said. . ~ E. h* ]4 Y( E
4 O* Z: e2 {# e- K" hA hike in that range could cost the average homeowner up to $200 a year. 7 K" z* C' \3 H2 ]! m/ `. [
3 m2 `+ n$ C/ y% v4 K"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. 2 x1 X: D# P$ W" c8 d
- w* }2 [% S( N7 ?+ d, kCoun. 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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! ?8 X0 a+ j- d o* gThe draft budget does not come out until November.
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! V8 B0 j" h& _1 g) Z"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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5 p5 ~5 | ^3 ]5 s"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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9 ?% A) f% t; H v) q& pHowever, he said there aren't really any city programs that could be cut in order to save a few bucks. ) ^+ k6 Y# @, ~$ \9 w* d3 X9 n' i
2 m* b- p. R+ n) |! T* U6 k+ |"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. 2 A8 `: R6 l F7 E' l n) N# f
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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. : e1 s! ~( A0 m6 I1 Z3 u+ f4 {
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"They're going to hear from a lot of angry taxpayers if they're looking at 10%," Hennig said. 0 f/ ?' p; _3 ^- h5 P2 y
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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." . ]' X/ i( ^4 Y# h- X, ?! K x
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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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) D. L! C+ R) w" kThe 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. & Q2 m5 v3 A" S9 W d& } z, m
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Tax bills will be mailed May 25 and payments are due June 30. |
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