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Mayor warns of 'scary' tax hike
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1 B; y) _3 `; i) ^/ wThink your property taxes are high now? You ain't seen nothing yet.
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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. ( h3 L* w+ R& Z$ {
. Y2 r7 M( {2 G* d& C"Looking at this we're talking an 8-10% tax increase," Mandel said in council chambers.
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. S- l* W5 [& P4 P/ y! H4 p8 s- ICity manager Al Maurer confirmed that Mandel's prediction was on the money, based on initial cost estimates# X$ s% B% L4 [0 J0 `) S- X2 C
"Given the amount of it, it's going to be scary," the mayor said. 2 H( v! P" P) c/ ?5 _) A( X1 e X. i
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A hike in that range could cost the average homeowner up to $200 a year.
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9 m3 v: i! ]% K& t6 L" T"There's no question costs are going up," said Coun. Michael Phair, who conceded the tax hike "may very well" be in the range predicted by Mandel.
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Coun. Ron Hayter said it's still very early in the process, and he cautioned against getting overly anxious at this point.
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The draft budget does not come out until November.
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/ ~ k" f8 B; D& y( _"I'm not looking for a major increase next year, at least not too much more than we've already approved for this year," Hayter said. 5 t: z8 i' B4 I+ j3 @' w
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"It won't be as bad as some people are making it out."
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! p; ?2 h/ c% L* b1 _+ V$ JMaurer said income from investments and various financial strategies could offset a large hike. , r @' B! u D8 L' w5 J
2 Q/ T" ` ]2 N3 y' VHowever, he said there aren't really any city programs that could be cut in order to save a few bucks. 3 D- N) z; S* X0 L
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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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( d! Y, Z: C: q, U, u9 cScott Hennig, with the Canadian Taxpayers Federation, said there's no excuse for a double-digit tax increase. 2 W; s( ]* C/ D$ o: I( D
. {2 y& B8 n- M1 a0 ?2 r( ^- x: uHe 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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{& P. F4 W) K"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." 2 |3 _8 [) a& S8 X
) m7 Z! q# |' K6 F' V+ dThe average property tax bill in Edmonton will go up 4.95% this year, the city has said. . Q! p- |- e' I/ e2 C
& w6 C( l/ R8 K/ Z& ~5 HThe 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.
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3 z% Z) |3 M$ U% v2 W& V! p; XTax bills will be mailed May 25 and payments are due June 30. |
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