Calgary city council discuss cutting tax increase in 2026 city budget

Calgary’s new city council held its first regular meeting since the election on Monday, focusing on the proposed 2026 budget prepared by the previous council.

The City of Calgary is proposing $4.6 billion in operating spending and $3.6 billion in capital investments for 2026.

The spending includes funding for affordable housing investments, downtown safety initiatives — including funding for the Calgary Police Service (CPS) — and funding to increase transit service frequency, fare affordability programs, and maintenance and safety programs.

Mayor Jeromy Farkas and the 14 councillors, which includes 10 rookie members, will have the final say as they debate and discuss the proposed budget throughout the week.

The budget also contains a blended 3.6 per cent property tax increase, meaning the average homeowner will pay 5.4 per cent more and a 1.3 per cent increase for commercial property owners.

Administration says it works out to around $18 more a month for the average home when you factor in the tax increase and higher fees.

Farkas is hoping they can cut the increase in half without making any sacrifices.

“All options have to be on the table,” he said. “We need to look at ways that we can make Calgary cost-effective, not just from the business side but also affordable for residences, and that’s really the balancing act that this council’s going to have to deliver in two weeks time.

“We’re looking at ways that we can drive efficiencies that we can still find the needed investments around public safety, around transit, around housing, around infrastructure, while also reducing the burden that Calgarians are facing.”

New Ward 14 Councillor Landon Johnston says not much can be done about the deferred projects within the city, but he wants to cut “what doesn’t need to be there and then fund what needs to be funded right now.”

For Johnston, the Climate Emergency Fund is what he calls a “waste of money.”

“I think we can eliminate a big portion of that — if not all of it — and that will be immediate savings, right? We have a police force that is highly … underfunded right now, right? And so safety was a big topic and a big concern for the City of Calgary. So well, we’re going to have to make drastic cuts to a lot of areas,” he said.

Farkas admits that because it’s the final year of a four-year budget cycle and was approved by the last council, there isn’t a ton of wiggle room to make changes.

“This budget is a consequence of a bunch of different things … so there’s some limitations in terms of how much change that this council can deliver all at once, given the confines of only having had this for a week or two,” Farkas said.

Ward 6 Councillor John Pantazopoulos says while the budget is large and worth sifting through, he believes it’s not beneficial to get into the “minutiae” or “granularity” because there are priorities Calgarians have that should be their focus.

“We have a $9 billion budget that includes operating and capital spending, and it’s not such a waste of time, but it would not be the best use of time if we go down into the minutia … or that granularity. We have to go higher, that’s where better time is spent,” he said.

Council deliberation comes as City releases Fall 2025 survey

The city also released its Fall 2025 survey on Monday, which was conducted by IPSOS and included 2,500 Calgarians participating from July 30 to Aug. 28.

Results from the survey show 71 per cent of Calgarians say their quality of life is “good,” 73 per cent say Calgary is a “great place to live,” and 68 per cent say “it’s a great place to make a living,” all increasing from the previous year.

Trust in the city, however, is below half, at 47 per cent, while 24 per cent actively show distrust, and 30 per cent are neutral. The survey also revealed that 59 per cent say they are satisfied with the city and council, which is a 13-point increase from fall 2024.

Farkas says it’s great to see Calgarians engaged in the process, and says it’s “validation” of what “pretty much everyone” in council heard during the election.

“We heard this at the doors. We continue to see it through the city surveys. So it’s really good level setting of our conversation as we get into these budget decisions,” he said.

Pantazopoulos said that council, regarding the survey results being incorporated into budget discussions, has to listen to the voices of Calgarians in any financial decision.

“We had the benefit of the best review through door knocking, knocking on 50,000 doors … the voice of Calgarians has to be incorporated into any budget, any decision we make,” he said.

Johnston was skeptical of some of the results, saying they may have changed since their release.

“I could tell first-hand, talking with other counsellors, going door to door, that there is a level of frustration with the value of our services right now,” he told reporters.

He also says city dollars should be spent “properly” to bring trust back to council and administration.

“It’s one thing to get a nice little pie chart, right? But it’s to see where that money is being spent,” Johnston said.

During the scrum with reporters, he was asked if a motion he put forward on Monday was a responsible use of Calgarians’ tax dollars. It led to a half-hour debate among councillors that he ended up voting against. It was regarding all public submissions being viewed, calling the chamber a “safe place for people to say and do whatever they want.”

Johnston apologized and said it was a learning experience. He also said, “A lot of procedures within this Council, in my opinion, including what I brought up, is a waste of taxpayer money, right?”

Respondents in the fall survey cited infrastructure, traffic, and roads as their top priority at 39 per cent, while crime, safety, and policing jumped up slightly from 16 per cent in 2024 to 23 per cent. Nineteen per cent say focusing on homelessness, poverty, and affordable housing is their top issue.

Council will continue to deliberate on the budget and possible amendments later this month.

With files from Hajar Al Khouzaii