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Mayor warns of 'scary' tax hike
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, G1 \4 W+ L# r; jThink 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.
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) d+ K1 p+ b" f7 J- N0 {"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* B Z/ F6 Z6 W5 K0 h
"Given the amount of it, it's going to be scary," the mayor said.
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9 |/ E, E, @, Z: g6 XA hike in that range could cost the average homeowner up to $200 a year. + z7 D. y- g( c9 u' Y6 Y
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"There's no question costs are going up," said Coun. Michael Phair, who conceded the tax hike "may very well" be in the range predicted by Mandel.
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3 b7 W- u+ |6 M; fCoun. Ron Hayter said it's still very early in the process, and he cautioned against getting overly anxious at this point. ^3 n# l; u4 `
- J1 T* }' F! {" ]+ LThe draft budget does not come out until November. 7 E) E) p& K; A# w6 |
6 T+ V; s! r+ j"I'm not looking for a major increase next year, at least not too much more than we've already approved for this year," Hayter said.
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0 W p+ S3 N/ ^% @% Z% x"It won't be as bad as some people are making it out." % z+ c" n! n% G5 C# j4 i
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Maurer said income from investments and various financial strategies could offset a large hike. , n0 ~' b5 f9 p! X# i4 _# [
1 S3 ~2 L$ j) m' f5 SHowever, he said there aren't really any city programs that could be cut in order to save a few bucks. & I" z! h! h0 @% @* |- i
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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. ! Y) v! j6 \# [5 H9 e- `
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Scott Hennig, with the Canadian Taxpayers Federation, said there's no excuse for a double-digit tax increase. ) }( b6 s0 E9 {& [9 a3 I( g' M
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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.
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$ _8 O, n" ~7 {6 f"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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' d+ R5 G$ k8 m: |The average property tax bill in Edmonton will go up 4.95% this year, the city has said. $ m0 f/ }; F# G, p2 ~
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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. : `$ o _1 t# K! z* G& Q
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Tax bills will be mailed May 25 and payments are due June 30. |
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