Calgarians are unpacking the city's newly approved budget for next year, with supporters celebrating increased spending on transit, safety and infrastructure while others question council's use of reserves to pay for those costs.
The Council approved the budget for 2026 Property taxes are expected to increase Wednesday by 1.64%, down from the originally proposed 3.6% increase.
The move is expected to cost the typical 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 and water service fees. The budget initially would have cost residents an additional $13.11 in property taxes alone.
“Most Calgarians seem pretty reasonable,” Calgarian Christina Maluta told Global News. “It should be something that can easily fit into the family budget.”
Next year's budget is the final year in a four-year spending plan approved by the previous City Council but revised by the newly elected council.
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.
The Calgary Chamber of Commerce praised council's decision to reduce property tax increases while investing in “essential services” such as transit and public safety.
However, Chamber President Deborah Yedlin questions the council's use of more than $90 million in reserves to cover one-time initiatives.
“Going into emergency funds and using investment income is not sustainable over the long term,” Yedlin told Global News. “If you continue to rely on these funds, at some point they won't be there.
“At the same time, they expect the market to return a level of return that allows you to continue withdrawing throughout the year. None of this is guaranteed.”
Yedlin also took issue with the City Council canceling a planned one percent tax shift from businesses to residents to reduce the share that businesses pay in property taxes compared to homeowners. If this ratio reaches 5:1, the provincial government has the right to intervene.
According to the city administration, the forecast ratio excluding shifts in 2026 will be 4.60:1.
Yedlin said eliminating the tax shift would cost typical businesses an additional $2,100.
Instead, the City Council approved a proposal to implement an annual shift of 0.25 percent of the tax burden from businesses to residents over eight years, starting in 2027.
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“It won’t make a significant difference, it really doesn’t,” Yedlin said. “Let’s do something thoughtful and bold and continue to be a business-friendly city.”
On Thursday, Calgary's mayor defended council's reversal of tax changes and the use of reserves and investment income.
“We have taken a very cautious and prudent approach,” Mayor Jeromy Farkas told reporters. “We continue to maintain a very healthy balance sheet that outperforms virtually every other major city in Canada.”
According to the city, council increased public safety investments by $94 million in 2026 to cover new police officers, replacement of aging police vehicles, a public transit safety pilot project, and additional vehicles and personnel for the Calgary Fire Service.
The Calgary Fire Fighters Association, the union representing the city's firefighters, took to social media to thank council for the “non-partisan, fiscally responsible decision,” while the Calgary Police Service said the changes “strengthen frontline capabilities, fund lifecycle modernization and promote transparent policing.”
Calgary Transit received $76 million in additional financial support to improve system frequency, purchase new buses and expand funding for the low-income transit pass program.
Local advocacy group Calgary Transit Riders welcomed the increase in funding, even as council approved increasing transit fares across the board to generate an additional $4 million in revenue.
“We understand that,” said Alex Williams, chair of the Calgary Transit Riders. “We were just glad for people who can't pay the $4 fare that we still have a low-income transit pass to make sure everyone can ride transit and get around the city.”
Local cricket leagues are also celebrating next year's budget, which includes $65 million from reserves to fund the planned North East Sports Complex.
Rendering of the Northeastern Athletics Complex.
Courtesy: City of Calgary
The complex, which is still in the design stages, includes four multi-sports fields and a field house that will be home to the first competitive cricket pitch of its kind in Calgary.
“It will become a community center where people will come together through cricket,” said Hamza Tariq of Future Stars Cricket Academy.
“It’s important for children and the next generation to be able to play on a pitch designed for cricket.”
Funding for the facility is also welcomed by the Calgary Minor Soccer Association, which also lobbied council during public budget hearings last week to invest in city recreation and GamePLAN, the city's recreation investment strategy.
An additional $28.7 million from the reserve has been allocated by council to upgrade a number of facilities across the city.
List of recreational upgrades approved by Calgary City Council as part of the 2026 budget.
Global news
“We're finally starting to make progress in building capacity rather than fighting shortages,” said Calgary Minor Soccer Association president Carlo Bruno, who says there is a growing shortage of space and facilities for local sports leagues.
The property tax increase will be finalized in the spring following an assessment of city properties and the provincial budget, which will include a property tax requirement.
“Most of the property tax increases in recent years have come from the provincial government,” Farkas said.
“We've done our job and if the province continues to raise property taxes by double digits, Calgarians will be very clear who is responsible.”
The next four-year budget in 2027 will be compiled after a comprehensive review of spending in each city department to identify areas of efficiency as well as areas that require more funding, Farkas said.
