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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. . `/ K+ Y0 a) u9 a8 b! i" ?
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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. 0 T! c% n+ ^1 t+ L/ w
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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. , ^5 m; J' `$ x# h
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"Looking at this we're talking an 8-10% tax increase," Mandel said in council chambers. * K5 f5 T2 O# e
3 ^: M( i2 U' j1 qCity manager Al Maurer confirmed that Mandel's prediction was on the money, based on initial cost estimates
' {* S+ g$ I' |/ @ U3 j"Given the amount of it, it's going to be scary," the mayor said. 3 h* y- D( @% S9 x
! `% @9 L4 ^# N/ mA hike in that range could cost the average homeowner up to $200 a year. . C8 o9 p6 c8 t+ S5 ?, G' c
$ {7 i4 e' c& J"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. " A8 S2 x: O3 d' {; Z
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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.
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/ F# H# m+ Y5 o$ \+ e$ m+ fThe draft budget does not come out until November. ( d- y( F% E' j, L& ], G) b
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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.
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! w0 I1 ^9 s: S& d& j9 ["It won't be as bad as some people are making it out." 0 {9 Y. h2 f( @! y0 i$ O2 { `
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Maurer said income from investments and various financial strategies could offset a large hike.
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- S% t" `: J9 F4 bHowever, he said there aren't really any city programs that could be cut in order to save a few bucks. & [9 R3 Z* _. b9 J
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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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- u0 g- E$ g5 w6 h( {Scott Hennig, with the Canadian Taxpayers Federation, said there's no excuse for a double-digit tax increase. 1 \2 l( m5 y' @+ w) ]* n6 I
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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. 9 H% I# |1 C; h5 S; E2 p! Z
$ C, a% G7 ], l"They're going to hear from a lot of angry taxpayers if they're looking at 10%," Hennig said. " \6 M/ p; j. M5 ]5 S" O d0 N
8 ]$ S" l6 o* [, [2 t" U6 \3 B"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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/ ?; B6 m( k6 XThe 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. 9 s$ p# Y" }& z6 |3 B) j
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Tax bills will be mailed May 25 and payments are due June 30. |
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