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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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8 F$ P8 x$ e6 x2 S: \2 qEdmontonians 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. ! c9 C) l; T0 s' o
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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. 6 d; N6 l5 a- z) H: h& Z
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"Looking at this we're talking an 8-10% tax increase," Mandel said in council chambers.
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. w/ m8 f7 C6 \& u# j4 W- |. ECity manager Al Maurer confirmed that Mandel's prediction was on the money, based on initial cost estimates/ `5 w3 Y$ ]* f& l% Y% D
"Given the amount of it, it's going to be scary," the mayor said. * a7 y- z! n+ D4 u% d" \
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A hike in that range could cost the average homeowner up to $200 a year. $ Q& K2 E6 k) ~6 |& R
j6 E4 E$ Z) ^4 q+ m/ M"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. 5 ^1 [8 y: V3 {' M# R2 @" M$ e
3 r \3 o0 Z' T, ]5 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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9 g0 b- b2 H$ H" e% u- e# V( bThe draft budget does not come out until November. , X% y J) u0 X, r9 A; l& L
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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. # T, {: R- {. ]3 T* I: s
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"It won't be as bad as some people are making it out." ! |9 w8 |# p2 M3 g& V: z+ {
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Maurer said income from investments and various financial strategies could offset a large hike.
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- ?0 }( S! k/ ?# f4 f; x0 k$ yHowever, he said there aren't really any city programs that could be cut in order to save a few bucks.
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& [5 v7 u$ R2 t4 \. q8 t; R"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. ' S9 J; M/ {' \6 A3 S
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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. 1 X8 C/ H! n% i4 [! K1 {
# W3 o& d8 s! V2 i( \+ I8 _"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.
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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. " s3 N, u# K2 K# ~+ `2 Y+ z
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Tax bills will be mailed May 25 and payments are due June 30. |
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