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Mayor warns of 'scary' tax hike
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& }0 ~* W. w" ~( B( J* a6 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. 4 N0 W! B) o; p5 {
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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. " D% {3 q: f$ ?% W5 B
& p" H5 }) R5 d2 h! ["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
' g( _' `6 n. W4 ?# L0 R/ _"Given the amount of it, it's going to be scary," the mayor said.
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; ]9 G1 q3 E1 }: y% d% {A hike in that range could cost the average homeowner up to $200 a year. 8 L( o) R W6 F2 |( G( ~
" \. Y# j2 l5 c% c" G"There's no question costs are going up," said Coun. Michael Phair, who conceded the tax hike "may very well" be in the range predicted by Mandel.
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Coun. Ron Hayter said it's still very early in the process, and he cautioned against getting overly anxious at this point.
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8 E$ @ `- W5 J6 m% OThe draft budget does not come out until November. & w0 I& J2 Q: U \, r2 }
. J. g3 D4 e/ Z, a" [( p' L A. 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.
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3 w% _ R g+ ^2 @3 r% e"It won't be as bad as some people are making it out." " W8 n! A2 u7 W" v
/ b9 r9 k9 F' D/ d: M* }+ C; ZMaurer said income from investments and various financial strategies could offset a large hike. 9 R; e* o! V0 t3 z
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However, he said there aren't really any city programs that could be cut in order to save a few bucks. & I: _; p6 q- B
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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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Scott Hennig, with the Canadian Taxpayers Federation, said there's no excuse for a double-digit tax increase. ( b) ]& U# S; S" M2 @+ k8 \
+ ^2 o$ Z0 p/ E0 i0 I k. lHe said hikes should be limited to inflation, which is pegged at 5% both this year and next, according to the city. . S6 z c0 N2 V: R% Z6 Q
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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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' H, t% ]( e' t }6 s"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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2 A/ h0 Z% y8 H& S- pThe 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. # I( h- z3 F2 H2 h$ n4 W
/ r9 s4 r0 L7 ^3 U' P) fTax bills will be mailed May 25 and payments are due June 30. |
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