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Mayor warns of 'scary' tax hike+ D; Q( E5 @ V g4 V- V1 Z6 i
1 _2 e5 d( ~* s6 Z: S# JThink your property taxes are high now? You ain't seen nothing yet. ) R, C( d" G* s/ B& F5 _
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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. 0 v) i: `6 d9 p
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"Looking at this we're talking an 8-10% tax increase," Mandel said in council chambers.
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7 v' c; L* E, z4 aCity manager Al Maurer confirmed that Mandel's prediction was on the money, based on initial cost estimates* S, o8 `& Q, ]+ Y6 x8 s7 g- `% y
"Given the amount of it, it's going to be scary," the mayor said. 2 g- y. [: h$ v5 b U* z. M# p
# z5 @' U( x4 g- B$ F) [; N1 dA hike in that range could cost the average homeowner up to $200 a year. 6 b" \0 @ E" T) P3 i# L* l
; l1 E; a4 M% ^* Y6 H) @"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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! X# \1 L' j1 ?1 P+ [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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The draft budget does not come out until November.
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0 G9 F, S! x; p8 P3 ?4 Z! g) B# X"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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"It won't be as bad as some people are making it out."
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2 h( Z/ S8 l0 [+ v! i# R- m8 ZMaurer said income from investments and various financial strategies could offset a large hike. 5 S% ^* a v3 Z) p9 R6 Y+ F W# u
9 f1 G8 f; f8 I9 ~4 }8 G/ gHowever, he said there aren't really any city programs that could be cut in order to save a few bucks. l/ ^- e8 i! i; ^
' z6 ]0 r+ h1 N& \% |/ |# L3 C"We've certainly got more demands," Maurer said, noting council still has to find money to fund an improved snow-clearing program. - e: f' F( D: s2 p
; Z( s( {% H" O; k9 y& zScott Hennig, with the Canadian Taxpayers Federation, said there's no excuse for a double-digit tax increase. , q: ^9 u+ R7 ^
' R, ]0 r# h6 gHe said hikes should be limited to inflation, which is pegged at 5% both this year and next, according to the city. ( ]1 Z: `# C, ?( G- M: h3 S7 J% T; ?
$ i" E' r0 y" {. S* U9 b"They're going to hear from a lot of angry taxpayers if they're looking at 10%," Hennig said. : K; t! r, ]: @2 p. P$ j
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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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% ]: w R7 g& o! wThe average property tax bill in Edmonton will go up 4.95% this year, the city has said.
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6 k% }8 i2 s/ rThe 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. % b/ x5 I! m8 Y
: B% |, k& N+ y, U: f: m; OTax bills will be mailed May 25 and payments are due June 30. |
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