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Mayor warns of 'scary' tax hike( K% Z& R7 L1 G( G E
3 w3 d2 I0 o0 G) E* z6 TThink your property taxes are high now? You ain't seen nothing yet. 9 F( C+ [4 ?. ^$ L
0 V6 L# C+ f, M ]: o! {" vEdmontonians 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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8 r& K# V7 t: Z6 CMandel 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. ! d$ J) E% S) Q$ ?6 D( B1 x9 B1 ^
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"Looking at this we're talking an 8-10% tax increase," Mandel said in council chambers.
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City manager Al Maurer confirmed that Mandel's prediction was on the money, based on initial cost estimates) K( X4 g9 G9 _/ W
"Given the amount of it, it's going to be scary," the mayor said. 7 `/ I8 { d" W; h
- r6 Z& O C5 b8 NA hike in that range could cost the average homeowner up to $200 a year.
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"There's no question costs are going up," said Coun. Michael Phair, who conceded the tax hike "may very well" be in the range predicted by Mandel.
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Coun. Ron Hayter said it's still very early in the process, and he cautioned against getting overly anxious at this point.
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The draft budget does not come out until November. " w4 q9 I5 a& i: x( z& _% s W3 x
8 o/ s. k5 |3 n& t1 u"I'm not looking for a major increase next year, at least not too much more than we've already approved for this year," Hayter said. % ^0 @2 Y- _4 G; B% o; O. G
. O$ ~8 Q1 p# L"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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- e6 S, Z: Y) _, q& X0 ^1 sHowever, he said there aren't really any city programs that could be cut in order to save a few bucks. 7 R" o# z0 r& `/ D. ^2 M" X, Q
3 k _- W% s0 \5 ^1 X"We've certainly got more demands," Maurer said, noting council still has to find money to fund an improved snow-clearing program. 2 v. _4 ~' T$ I6 i3 g% X! m
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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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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. 7 i! D9 J s# g& i5 K# i% M$ V
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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. ' v& g* `6 P; M# i* J
/ P' |3 M; a# y. KTax bills will be mailed May 25 and payments are due June 30. |
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