CALGARY — Calgary councillors will have to decide between three budget scenarios for 2020, with each option representing different property tax rates for homes and businesses next year.

It means council has a choice — increase property taxes to maintain service levels, or cut city services to keep the tax rate at or near the current level.

Council previously approved a 3.03 per cent tax increase for next year, but then it ordered administration to explore other options, including a 1.5 per cent increase or no increase. Councillors will need to make the decision by the end of November.

“The city is committed to working with council, citizens and businesses to assist with Calgary’s economic recovery,” said Carla Male, the city’s chief financial officer.

If council moves forward with the 3.03 per cent increase, it would cost the average single family home an additional $5.10 per month in property taxes. A 1.5 per cent increase would see property taxes cost about $2.50 more per month for the average home.
 

Lower tax increases mean budget shortfalls

If council chose a lower tax hike or no increase, the city would be left with multi-million dollar holes in its budget.

A 1.5 per cent tax increase would leave the 2020 budget with a $26.5-million shortfall. It would mean the elimination of 178 city jobs, fewer affordable housing units, community social program cuts and less maintenance on roads and at city parks.

Under the scenario above, the city would shift funding to cover a $13-million shortfall in the police budget created by October’s provincial budget. The UCP government changed the formula under which it collects revenue from police fines.

If council decides not to increase the property tax rate at all, it leaves a $52.5-million hole in the budget. That would lead to cutting at least 230 city jobs, an $8.45-million reduction in the police budget and less money for economic development programs and city partner organizations.
 

Calgarians can have their say

Before council makes any decisions, Calgarians will be able to come and speak in council chambers on Nov. 25. People can also submit their feedback online starting today.

Deliberations on the budget and potential tax rate changes will start after the public speaks on Nov. 25, but the complete combined property tax rates won’t be finalized until the next provincial budget in the spring.