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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.
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& U6 h' o$ _1 @+ Z C0 DEdmontonians 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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# ^' o+ J2 l, L, j" j1 mMandel 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. $ ^/ k# a1 b8 S' k. t5 M; ^+ \
2 K! \) [; O. c1 C"Looking at this we're talking an 8-10% tax increase," Mandel said in council chambers. 6 u9 Y- a+ F' o' i( h
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City manager Al Maurer confirmed that Mandel's prediction was on the money, based on initial cost estimates
! r+ M* Z; [2 \/ Q1 `7 F; n+ }"Given the amount of it, it's going to be scary," the mayor said. ( [/ I6 e; ^, h
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A hike in that range could cost the average homeowner up to $200 a year.
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5 M" Z2 X; u: R7 D"There's no question costs are going up," said Coun. Michael Phair, who conceded the tax hike "may very well" be in the range predicted by Mandel. " ^4 ]* p3 K# S+ O. ?
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Coun. Ron Hayter said it's still very early in the process, and he cautioned against getting overly anxious at this point. % ~' ]9 n8 V, S( n& q3 c
5 U8 u8 l3 F& l6 r9 N0 h' Q+ NThe draft budget does not come out until November. 3 q O; u V1 r- d+ p' P( q) F
6 v0 G+ B2 S F, v' q"I'm not looking for a major increase next year, at least not too much more than we've already approved for this year," Hayter said.
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: M! {* b! l, l' l( N"It won't be as bad as some people are making it out." & U Y* j+ b4 q1 r8 `
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Maurer said income from investments and various financial strategies could offset a large hike.
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* I: s. t/ P1 ^- {' Z& x h: p4 b+ n1 pHowever, he said there aren't really any city programs that could be cut in order to save a few bucks.
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7 M7 P" l( o% M+ T! |"We've certainly got more demands," Maurer said, noting council still has to find money to fund an improved snow-clearing program.
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8 y0 w7 x; i- h% @" d/ W, SScott Hennig, with the Canadian Taxpayers Federation, said there's no excuse for a double-digit tax increase. * b6 t" c# q6 e0 V
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He said hikes should be limited to inflation, which is pegged at 5% both this year and next, according to the city.
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3 \8 A& `$ N. ? s/ ^"They're going to hear from a lot of angry taxpayers if they're looking at 10%," Hennig said. 5 D1 A5 h7 Z) _( U
2 K& Z# T* i% G# c: p"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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$ V, m( {7 ~) C% QThe average property tax bill in Edmonton will go up 4.95% this year, the city has said. r+ O- O" @" `
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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. 8 V+ r% u' e! ^& ?
5 E# ?- S$ ^4 V& ZTax bills will be mailed May 25 and payments are due June 30. |
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