Calgary homeowners may see costs increase with new budget
Calgary city council will soon vote on a number of budget changes that could see taxes for residential properties increase by up to 7.8 per cent.
City administration forwarded a report on its annual plan and budget adjustments to council on Tuesday, saying it has worked hard to keep property taxes and user fees low for Calgarians over the last several years.
"We are thinking not just about today, but tomorrow as well and we know that each dollar spent is a quality of life decision to be made," said Carla Male, the city's chief financial officer.
However, administration noted as the city grows, it has become more of a challenge to keep increases affordable while also making priority investments.
In the report, administration said as cities can only rely on property taxes for revenue, Calgary faces "a municipal fiscal gap" of an annual average of $311 million based on increased costs and funding shortfalls.
"The City of Calgary has managed its finances responsibly over the last decade," the city said in a statement.
"Compared to other large municipalities in Canada, Calgary has had low increases, and even decreases, in property taxes with the average annual tax increase from 2019-2023 at 1.19 per cent."
Now that council is set to vote on a number of proposed investments to be included in the budget, the costs for a typical single residential home – property tax, water, sewer and waste and recycling – could increase by $16 per month.
"We are ensuring that each dollar spent creates the most value for our community and the people that live here. That's why we have used every tool available to offset the recommended tax increase, looking at all revenue sources to ensure that we would only use an increase in tax revenue and user fees as a last resort," Male said.
Some of the budget adjustments included in discussions are an updated housing strategy, which comes with a one-time investment of $57.5 million followed by $27 million in annual costs and $10 million in capital costs per year, and a public transit safety strategy that will require council to approve an additional $15 million to make happen.
Administration has also proposed a plan to shift the tax rate ratio from non-residential to residential by one per cent each year for the next three years.
Councillors had already approved a residential property tax increase of 3.4 per cent for next year. Upped spending, if it goes ahead, would add another 2.4 per cent and the tax share shift would be responsible for two per cent.
"That's a lot of an increase for Calgarians. Again, if we can't hold a line at 3.4 (per cent) with the surplus we're seeing, there's fundamentally a problem (with) the way we're budgeting," said Sonya Sharp, Ward 1 councillor.
Sharp says some of her colleagues are already working on proposed amendments that would bring the tax increase lower than what's recommended by city officials.
"We have learned from administration that we simply can't keep up with maintenance on facilities, we can't keep up with maintenance on parks, and we are letting people down in terms of the services that they need and wish to have in their communities," said Mayor Jyoti Gondek.
With the budget changes, businesses are set to pay more than four-and-a-half times the amount of property tax paid for every dollar of assessment.
Council is set to make a final decision on the administration's strategy on Nov. 20.
Residents can offer feedback on the proposal by filling out an online form.
Submissions can also be presented in-person or remotely to council on the deadline date.
(With files from Jacqueline Wilson)
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