Calgary city council outlines priorities in proposed 4-year budget

Published: November 08, 2022 at 12:47PM EST

Another possible hit in cost-of-living struggle Calgarians are getting a peek at what the city's next budget could look like, and it's considering raising property taxes nearly 4 per cent.

The City of Calgary has released its proposed budget for the next four years, detailing spending priorities amid increasing inflation.

Calgary's proposed total annual operating budget will reach $4.9 billion by 2026 and plans are in place to invest a total of $10.2 billion in capital infrastructure that starts or continues in this cycle.

"The investments we’re proposing will continue our progress to make Calgary a great place to make a living and a great place to make a life for all Calgarians," said city manager David Duckworth in a release.

"We will continue to deliver the services Calgarians rely on over the next four years, while investing in Calgary to make it an even better destination and great place to live, work, grow and raise a family."

The plan outlines a proposed property tax increase of 3.7 per cent over the next four years, which is about $12 per month for single-family households.

While it’s going to be a tough pill for taxpayers to swallow, Mayor Jyoti Gondek said administration is keeping affordability in mind.

"I would say administration came back with a very responsible budget that respected the wishes of council," she told reporters Tuesday.

The proposed hike comes as city officials expect household expenditures to inflate by just over seven per cent this year.

The Calgary Chamber of Commerce isn’t a fan of the increased property tax and worries how it will impact businesses.

"I’m really concerned about what businesses will have to do to adjust their operations, their employment levels and how they actually are able to grow their businesses because of the extra cost burden," said Deborah Yedlin, president and CEO.

Gondek said it’s important to the city that businesses succeed, and that it must to balance the needs of the business community with residential property owners.

"If the proportion or ratio is something that’s causing them a lot of pain and it’s going to end with people not being employed and businesses being closer, we’ve got to take that very seriously," she said.

The city has outlined the following six areas as key budget investments:

$41 million (ongoing) to improve mobility through improved transit service levels, expanded initiatives like Calgary Transit On Demand and eScooters, and improved traffic safety;
$69 million (ongoing) to improve public safety by supporting community service provider partnerships, increasing staffing and technology and reinstating a medical response unit;
$11 million (ongoing) to service the expanding system of parks and open spaces system;
$9 million (ongoing) to support economic development and tourism by delivering convention centre services, producing cultural attractions and providing services for entrepreneurs and innovators;
$19 million (ongoing) and $159 million (one-time) to preserve heritage assets, provide user- and business-friendly planning policies and deliver programs to revitalize downtown; and
$3.8 million (ongoing) and $44 million (one-time) to set the foundation for work required to achieve 2050 climate targets.

In addition, the city has highlighted the following capital investments:

$559 million for public transit to improve comfort and reliability, reducing maintenance and fuel costs;
$76 million in public safety, providing effective and reliable emergency response, plus critical infrastructure upgrades in 911;
$47 million in recreation, supporting active living, and improving accessibility and inclusivity;
$153 million in affordable housing to keep families and individuals housed, fostering safe, accessible and inclusive housing;
$170 million for downtown and main streets, improving the public realm, attracting investment and improving quality of life;
$42 million in reducing greenhouse gas emissions, mitigating climate risks and preparing for the low carbon energy transition; and
Continuing to make progress on city-defining infrastructure investments including the Green Line, the BMO Centre expansion and the Arts Commons transformation. We also continue to work toward an Event Centre and Field House.

"Calgary, just like the rest of the world, has experienced a lot of change in recent years, and we are still experiencing lingering impacts on our services and affordability," said chief financial officer Carla Male.

"Calgary is not immune to global challenges like inflation, the COVID-19 pandemic, economic downturns and climate change. That’s why striking a balance between services and costs has been particularly important when developing the 2023-26 Service Plans and Budgets. We have been closely monitoring our finances, maintaining a focus on streamlining the cost of government and implementing innovative and customer-focused improvements."

Calgary is expected to welcome approximately 88,000 new Calgarians between 2022 and 2026 – more than the population of Airdrie.

As of right now, council is divided on the budget. Some councillors call it "modest" and question whether more investments should be made, while others say the opposite because there is an increase in the amount in the budget.

"It’s very much a status-quo budget and I don’t love that, purely because of the reality that Calgarians are looking for services, Calgarians are looking for the city to provide safety in the city, to address crime in the city," said Ward 8 Coun. Courtney Walcott.

"The difference between what we’re actually looking at here in Calgary is that little bit of money per month is a drastic, drastic shift in the quality of services that you can provide to people."

Ward 1 Coun. Sonya Sharp said there is still a lot of work to be done behind the scenes and hopes council will agree on a budget that represents what Calgary wants.

"Calgarians are asking for things that will cost money and that is, you know, affordable living, fixing crime in the city and looking at some infrastructure changes, and these are things that we need to reflect on," she said.

Council is set to debate and make final decisions on the budget between Nov. 21 and 25.