City administration recommends 3.6% tax increase to Calgary council

City administration in Calgary is recommending a tax increase for next year that is just under one per cent less than they were originally planning for.

The refinements to the tax increase were made possible after the city found extra investment income that could be applied to maintain the 3.6 per cent tax increase already approved for 2025.

The news came as administration gave updated budget recommendations to city council as part of a mid-cycle review. Members of council were originally told back in September that the projected tax increase would be 4.5 per cent.

If approved, the 3.6 per cent increase means an extra $8.37 a month in property taxes for a single-family home, and an additional $5.09 a month in waste and recycling.

Earlier this year, council asked city administration to 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.

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.

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.

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

Budget deliberations will begin Nov. 18.