After more than a week of discussions, Calgary city council approved next year's budget with a reduced property tax increase and a slew of new spending initiatives, mostly drawn from reserve funds.
The council approved a budget with a 1.64% property tax increase next year, up from the 3.6% increase originally proposed.
The city estimates the increase will cost the typical homeowner an additional $4.50 in property taxes, for a total of $9.79 per month, combined with a $5.29 monthly increase in waste and recycling fees and water service fees.
The originally proposed budget would have meant an additional $13.11 per month in property taxes alone.
To reduce property tax increases, the council used $50 million in investment income to pay for city operations and canceled a previously planned shift of property taxes from businesses to homes.
“This is a truly impressive budget,” Calgary Mayor Jeromy Farkas said after the vote. “Not only does it keep taxes affordable, but it invests where we need it most.”
Ward 1 Count. Kim Tyers attempted to reduce the property tax increase to zero with an amendment that asked the administration to save $41 million across several departments, excluding the Calgary Police Service, Calgary Fire Service and Calgary Transit.
However, this amendment was rejected by a vote of 5 to 10.
It was one of nearly 40 amendments made by councilors over eight days of deliberations.
Calgarians will pay more for transit in 2026 after council approved fare increases for all services, but that followed council's vote to green light a $76 million funding increase, 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 by Ward 6 Coun. John Pantazopoulos.
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Increasing funding for public transportation, as well as $7.5 million to improve pedestrian safety throughout the city, were among the ideas floated by Ward 7 Coun. Mike Atkinson, who tried to fund the initiatives outlined in the relevant city strategies.
“We have all these great strategies, but sometimes when it comes to putting the rubber on the road and actually funding these great ideas, we don't actually hit the mark,” Atkinson told reporters. “It was a commitment to just implement some of the ideas that we saw in those visions.”
The Calgary Fire Department also saw an increase in funding to pay for a new engine and hire mechanics and training coordinators following an amendment introduced by District 9. Harrison Clark.
However, most of the new spending did not impact property tax increases, as several amendments drew more than $90 million from various city reserve accounts to pay for initiatives and one-time expenses, including $60 million from the city's Financial Stability Reserve (FSR).
“The FSR won't affect the tax rate per se, but at the end of the day it's still taxpayers' money,” said Coun Ward 11. Rob Ward. “I really think it’s a sign that so many new council members want to make their mark.”
The reserve funding would help cover $25 million for a proposed new subdivision in District 2, $13 million for intersection safety improvements, and $1 million for roadway assessments. old YWCA building in the Belt Line. Another $1 million was allocated for a public restroom program and $150,000 for cleanup along Dermott Baldwin Way SE, outside the Community Care Center.
“They also provide a visible element of public safety, but they also provide key services to our most vulnerable populations,” District 8 said. Nathaniel Schmidt.
One of the biggest spending approvals was a unanimous council vote following District 5's amendment. Raj Dhaliwal was allocated $65 million from reserves to fund the Northeast Sports Complex, as well as an additional $28 million over the next several years to upgrade facilities at a number of city parks and fields.
“Enough discrimination in recreation,” Dhaliwal said. “The story of the two towns east and west of Deerfoot must end, and this is just the beginning of the rest.”
The council did cut the Downtown Office Transformation Program budget by $5 million and cut the city's climate change spending by $9 million.
However, other attempts to cut costs have failed.
“I don't think there's much room for cuts,” said Ward 10 Count Andre Chabot. “The cuts are what you try to fit into a four-year budget plan. This is the last year of a four-year budget. There's not much to cut.”
The council voted 12-3 to approve the budget, with council members Landon Johnston, Mike Jamison and Jennifer Wyness voting against.
Jamison said he voted against the budget because of the property tax increase.
“On the one hand, I am glad that we have been able to significantly reduce the number of such cases,” he told reporters. “I don't think we did enough because I think there was a path to zero.”
After approving the budget, the council also approved a plan to gradually shift the 0.25 percent share of the nonresidential property tax to residential property over eight years, starting in 2027.
Overall, next year's budget now includes $4.6 billion in operating expenses and $3.8 billion in capital expenditures 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,” David Duckworth, the city’s chief administrative officer, said in a statement. “This investment will help ensure Calgary residents have access to the services and infrastructure they depend on every day.”
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