Administration pitching property tax increase, higher water, waste fees to Calgary council in mid-cycle budget adjustments

Administration is set to give updated budget recommendations to Calgary city council Tuesday, as part of a mid-cycle review.

The 2023-2026 Service Plans and Budget was approved by council in November 2022. The city says mid-cycle adjustments are made to reflect changes in economic factors and ensure the local government is adequately responding to Calgarians’ needs.

Of concern is aging infrastructure, highlighted by this summer’s massive water main break, rapid population growth, and high inflation.

Earlier this year, council asked city administration top keep the 2025 property tax increase steady at 3.6 per cent. For that to be a reality, council was forced to re-evaluate its investments and funding priorities, with a goal of finding efficiencies, adjusting and prioritizing work, and improving budget estimates.

A total of $107 million in tax support operating budget was identified through this process, and $228.9 million in capital funds can be re-used for priority investments, the city says.

But, more needs to be done to maintain the proposed tax rate for next year.

Administration is proposing a 0.9 per cent property tax increase for 2025, which it says will increase the annual tax bill for the average Calgary home assessed at $700,000 by $8.86. This is $1.90 a month more than the currently approved 2025 budget.

Also on the table for council to consider will be an increase to user fees for water, waste and recycling for next year. The city says this is needed due to continued population growth and inflation, infrastructure, inspections, and repair needs.

If approved, property owners would see an increase of $5.09 per month on the typical residential water and waste utility bill. This is based on typical metered water usage of 19m3 per month, according to the city.

Councillors will ask administration questions and debate before making a final decision on which amendments to adopt.