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Understanding the budget changes in Calgary
After extensive public feedback and discussions, Calgary’s city council has finalized its budget for the upcoming year, which includes a property tax increase of 3.6%. This decision, initially approved during the 2022 budget deliberations, translates to an additional $13.46 per month for homeowners with a typical property valued at $700,000.
Alongside this tax increase, residents will also see a rise in service and utility fees, amounting to an extra $5.09 monthly based on average usage.
The impact of these changes varies significantly across property types. For instance, condominium owners with properties assessed at $360,000 will experience a steep 10.5% increase, resulting in an annual tax bill of approximately $1,370.
Mayor Jyoti Gondek emphasized the council’s commitment to balancing affordability with essential services, stating, “This budget represents a clear commitment to the people of Calgary.”
Strategic spending from reserves
In a bid to address various community needs without further burdening taxpayers, the council approved one-time funding from reserves.
This funding will support several key initiatives, including a new firearms training facility for the Calgary Police Service, a $20 million allocation for pothole repairs, and $15 million for necessary upgrades at city-owned recreational facilities. Additionally, $2.5 million will be dedicated to enhancing playgrounds across the city.
Moreover, the budget also allocates funds to cover a $33 million revenue shortfall for Calgary Transit, ensuring the continuation of the low-income transit pass program for another year. Mayor Gondek plans to advocate for full provincial funding for this program, highlighting the importance of accessible transit for all Calgarians.
Infrastructure and community growth initiatives
Calgary’s budget also includes significant investments in water infrastructure, with authorization to borrow over $1 billion for projects such as a new water treatment plant and upgrades to wastewater facilities. This financial commitment reflects the city’s proactive approach to managing its growing population and the associated infrastructure demands.
Additionally, the budget aims to kickstart the development of approximately 18,000 new homes on the city’s outskirts, addressing the pressing housing needs of a rapidly expanding community. Despite the challenges and heated debates surrounding the budget, the council ultimately voted 9-6 in favor of the proposed plan, with some councilors expressing concerns about the tax increase and its implications for residents.
