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Mayor warns of 'scary' tax hike
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1 L1 `. d0 u7 SThink your property taxes are high now? You ain't seen nothing yet. 3 l) y5 |! J) Z3 I2 H" D
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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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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. 8 p' S: z; ]( ?- Z+ a
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City manager Al Maurer confirmed that Mandel's prediction was on the money, based on initial cost estimates
/ X6 S6 o" X5 L2 E y' q1 A"Given the amount of it, it's going to be scary," the mayor said.
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w, H& d' D, c6 n5 `A hike in that range could cost the average homeowner up to $200 a year. 0 G- I2 o9 y t: w7 }
1 m9 N; ^1 z% x"There's no question costs are going up," said Coun. Michael Phair, who conceded the tax hike "may very well" be in the range predicted by Mandel. , _( w( @/ T, D; n
; f. Q/ ^7 k% m6 jCoun. Ron Hayter said it's still very early in the process, and he cautioned against getting overly anxious at this point.
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The draft budget does not come out until November.
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/ F& h/ Q5 k. U$ X) ~ {9 C"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. ' n6 D/ ?) Z7 |
! }; R. h" }- R( w0 y) F"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. ' h) f2 t8 H4 K
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Scott Hennig, with the Canadian Taxpayers Federation, said there's no excuse for a double-digit tax increase.
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, h6 _$ }2 O7 |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." , Y# ~ P: l" 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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! h% |! g8 w: M8 E, h& ~; `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. + H5 n8 w E2 |' b
$ v4 C* n+ R' v2 rTax bills will be mailed May 25 and payments are due June 30. |
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