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Talk of tax hikes and big borrowing ahead of Calgary budget discussions

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Calgary councillors are set to start debating mid-cycle budget adjustments next week that include proposed property tax increases and a pair of borrowing bylaws that equal more than a billion dollars.

Budget discussions for the next two years will begin on Monday morning with presentations from city administration and public input before decisions are made.

What is currently proposed is a property tax increase of 3.6 per cent overall for 2025. If approved, the rate for single-family homes would jump 3.9 per cent, while apartment owners would see their taxes hike by 10.5 per cent.

The total proposed property tax increase for non-residential properties is 1.4 per cent.

"In 2022, we looked at what our predicted inflation would look like this year. We looked at predicted population growth and we set a rate of 3.6% that the budget should not increase by more than that," said Mayor Jyoti Gondek.

"I can tell you right now, the inflation number has almost doubled and population growth has more than tripled what our forecast was at that time. So, we are in an incredibly tough situation where we are delivering on our promise," she said.

The city is also upping monthly utility fees by 3.7 per cent for a typical single residential property.

Combined with the property tax increase, the average single-family home with a median price of $700,000 will pay about $13.46 more per month next year.

Aside from inflationary pressures adding to the budget, some of the increased spending includes tens of millions of dollars for roads projects such as work for a flyover at Stoney Trail and Memorial Drive and pavement improvement on high-speed roads; $4.7 million towards the Calgary Fire budget to increase the amount of crews on aerial trucks; and $2.5 million to improve downtown safety.

Spending will also offset what is expected to be a projected $33 million revenue shortfall for Calgary Transit. The department wants $13 million in operating cash and another $19 million to support the low-income Transit Pass Program, which has grown due to high demand.

A billion in borrowing

Also part of next week's budget discussion is an ask to start to pass a pair of borrowing bylaws for water infrastructure totalling more than $1.03 billion.

One bylaw, for a maximum of $612 million, is pitched to be paid off by off-site levies over the course of 25 years. The other ask, to borrow up to $426 million, will be paid off by user fees over 25 years.

The money would be to upgrade water pump stations, wastewater infrastructure, add a water treatment plant and at least one main feeder line.

"There are plans in place to ensure that we've got greater redundancy in the system so what we are doing (is) another feeder main to the north, that we have an expansion of a facility or another facility.," said Gondek.

"We're just really making sure that we've got the water infrastructure in place for the type of population growth we have already experienced," she added.

Public input

As part of the mid-cycle discussions, members of the public can provide written feedback or speak to councillors next week.

It is expected to be a multi-day meeting with city departments presenting on the budget before debates about possible additions or cuts.

The public can register to speak online on the city’s website.

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