Monday is the beginning of budget week at Calgary city hall, so you may want to hold off on your Christmas shopping until you find out how many tax dollars you’ll be pouring into city coffers.
It will be a test for 10 new members and the four returnees to council who will no doubt be keen to sharpen their pencils and keep election promises to keep taxes low as they debate the proposed budget put together by city administration.
This year marks the final adjustments to the original 2023-2026 service plans and budgets that were approved by council in 2022. The city updates its budget annually to respond to changing conditions and priorities, while staying aligned with long-term goals.
In a preview of the budget in September, administration said, “The 2026 budget reflects what Calgarians said matters most to them: housing, public safety, transit and Infrastructure. These proposed investments go above and beyond the original budget, representing additional funding to address the evolving needs and priorities of Calgarians.”
Specifically, the administration’s proposed budget calls for a 3.6% increase in tax revenues for an average property tax hike of 5.4% and a 1.3% increase for nonresidential properties.
“The figures reflect a shift in tax responsibility to support a more business-friendly environment while balancing affordability for residents,” according to administration, adding “the current 2026 budget calls for allocating $318.2 million in additional spending to respond to population growth.”
At the council meeting previewing the budget, Chief Administrative Officer, David Duckworth said, “We know Calgarians are feeling today’s economic challenges, which is why we are focused on investing in what matters most to Calgarians. This budget balances affordability with the demands of a growing city, allowing us to continue to deliver high quality programs and services that meet the needs of our community.”
While being a test of all councillors, the budget deliberations will be a larger test for newly elected Mayor Jeromy Farkas.
One day after capturing the mayor’s chair, Farkas spoke to members of the Calgary Chamber of Commerce, saying a message he heard from Calgarians is that better financial responsibility is needed at city hall.
“I think all around the table, there’s a broad consensus that the tax increase that is being proposed is far too high,” he said. “When it comes to the budget, all options are on the table. We're going to be driving measures to reduce the tax increase that was proposed by the last mayor and city council, while also delivering on the needed infrastructure and services and quality of life for Calgarians."
Farkas added he would be looking to the new city council to find better ways to fund initiatives that can improve public safety and essential infrastructure maintenance.
“There are some areas where obviously too much money is being spent, but there’s other areas that have been underfunded. So, we’re going to be right sizing that,” he said.
Specific spending incudes: $78 million supporting affordable housing including ongoing downtown office-to-residential conversion and other projects; $61 million to increase safety initiatives downtown, including daytime resources and outreach for vulnerable Calgarians; investments in 9-1-1 operations and funding for Calgary Police; $59 million to increase transit frequency, affordable fare programs, as well as maintenance and safety upgrades; $68 million for infrastructure upgrades, including pavement, streetlights, parks, facilities and the Plus 15 network to maintain service quality, and; $1.1 billion for water infrastructure and ongoing work on major projects such as the Green Line and Event Centre.
Additionally, utility rates are forecast to increase by 3.8% for the water, waste water and stormwater portion of a typical residential bill. What that means in real dollars for the typical household will be revealed in the proposed budget deliberations, scheduled for Monday, Tuesday and Wednesday next week.
For more information go to calgary.ca/budget.