After more than a week of deliberations, Calgary city council has approved next year’s budget with a reduced property tax increase and a slew of new spending initiatives, largely from reserve funds.
Council approved the budget with a 1.64 per cent property tax increase next year, down from the originally proposed 3.6 per cent hike.
City estimates show the increase would cost the typical residential homeowner an additional $4.50 in property taxes, for a total of $9.79 extra per month when combined with a $5.29 monthly increase in waste and recycling fees, as well as water utilities.
The budget as originally proposed would’ve meant an additional $13.11 monthly in property taxes alone.
To reduce the property tax increase, council tapped into $50 million of investment income to help pay for city operations and cancelled the previously scheduled property tax shift from businesses to homes.
“This is a really impactful budget,” Calgary Mayor Jeromy Farkas said after the vote. “It doesn’t just keep taxes affordable, it also invests where we need it the most.”
Ward 1 Coun. Kim Tyers attempted to cut the property tax increase to zero per cent, with an amendment that asked administration to find $41 million in savings across several departments, excluding the Calgary Police Service, the Calgary Fire Department and Calgary Transit.
That amendment, however, was defeated in a 5-10 vote.
It was one of nearly 40 amendments brought forward by councillors over the eight days of deliberations.
Calgarians will be paying more to ride transit in 2026 after council approved fare increases across the service, but that was followed up with council voting to green light $76 million in funding boosts, including $6 million to increase transit frequency, $11.5 million to kickstart the purchase of new transit buses and another $9 million to fund a proposed pilot project proposed Ward 6 Coun. John Pantazopoulos.
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Increasing transit funding, as well as a $7.5 million boost for pedestrian safety improvements citywide, were among the ideas brought forward by Ward 7 Coun. Myke Atkinson, who attempted to fund initiatives laid out in related city strategies.
“We’ve got all these beautiful strategies, but sometimes when it comes down to the rubber hitting the road and actually funding those great visions, we don’t actually get there,” Atkinson told reporters. “This has been a commitment to just realize some of those ideas that we’ve seen in these visions.”
The Calgary Fire Department also saw a boost in funding to pay for a new engine and to hire mechanics and training co-ordinators after an amendment from Ward 9 Coun. Harrison Clark.
However, most of the new spending didn’t impact the property tax increase as several amendments drew upwards of $90 million from various city reserve accounts to pay for initiatives and one-time spending, including $60 million from the city’s Fiscal Stability Reserve (FSR).
“FSR is not going to impact the tax rate per se, but it’s still taxpayer money at the end of the day,” said Ward 11 Coun. Rob Ward. “I do think it’s a symptom of so many new councillors wanting to make their mark.”
Reserve funding is set to help cover $25 million for a proposed new subdivision in Ward 2, $13 million for intersection safety improvements, as well as $1 million to assess the condition of the old YWCA building in the Beltline. Another $1 million was allocated to a public washroom program and $150,000 for clean-up along Dermott Baldwin Way S.E., outside the Drop-In Centre.
“Those also provide that visible public safety element but provide key services for our most vulnerable as well,” said Ward 8 Coun. Nathaniel Schmidt.
One of the biggest spending approvals was a unanimous vote from council, after an amendment from Ward 5 Coun. Raj Dhaliwal for $65 million from reserves to help fund the Northeast Athletic Complex, and an additional $28 million over the next several years for facility upgrades at a number of city parks and fields.
“Enough of recreation discrimination,” Dhaliwal said. “The story of two cities east and west of Deerfoot has to end and this is just the start with recreation.”
Council did reduce the Downtown Office Conversion Program budget by $5 million and cut the city’s climate spending by $9 million.
However, other attempts to make cuts were defeated.
“I don’t think there’s a lot of opportunities for cuts,” said Ward 10 Coun. Andre Chabot. “Cuts are something you try and incorporate over a four-year budget plan. This is the last year of a four-year budget. There’s not a lot to cut.”
Council voted 12-3 to approve the budget, with councillors Landon Johnston, Mike Jamieson and Jennifer Wyness voting against it.
Jamieson said he voted against the budget due to the property tax increase.
“I am happy, in one regard, that we got a large number down quite a bit,” he told reporters. “I don’t think we did enough because I think there was a pathway to get to zero.”
Following the budget’s approval, council also approved a plan to gradually shift 0.25 per cent of the tax share from non-residential to residential properties over an eight-year period starting in 2027.
Overall, next year’s budget now includes $4.6 billion in operating spending and $3.8 billion in capital investments for 2026.
“Council’s approval of this budget reflects a shared commitment to building a world-class city that works for Calgarians today and for generations to come,” said David Duckworth, the city’s chief administrative officer, in a statement. “These investments will help ensure Calgarians have access to the services and infrastructure they rely on every day.”
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