Preliminary budget documents obtained by Global News show the slew of funding requests from city departments under consideration by Calgary city council could result in a significant, double-digit property tax increase next year.
The confidential documents, which were presented to city council during a closed session meeting on July 28, indicate property tax revenue would need to increase by 20.2 per cent in 2027 to fund an additional $510 million in operating spending required to cover a number of budget requests from various city departments and partners.
Those funding requests, if approved, would also result in hikes over the ensuing years: 8.5 per cent property tax increase in 2028, a nine per cent increase in 2029 and an 8.9 per cent increase in 2030; the final year of this council’s four-year budget.
It remains unclear how significant an impact those property tax increases could have on monthly bills.
“It is important to recognize the significant gap between funding requests and available funding,” administration said in a cover report as part of the preliminary budget documents.
According to a slide deck presented to council during the closed session, the city has additional funding capacity of just $139 million for the various budget requests without the need to increase property taxes in 2027.
However, property taxes would need to rise 5.4 per cent next year just to maintain services.
Council spent much of the July 28 meeting reviewing more than 107 requests for funding increases from various departments, including Calgary Transit, Mobility, the Calgary Fire Department and the Calgary Police Service.
The report warned there is “a high likelihood” that funding requests will continue to exceed available financial capacity “if not sufficiently addressed through prioritization, scaling or reducing requests.”
Calgary Mayor Jeromy Farkas told reporters Wednesday it was premature to speculate what the property tax increase will be and any figures “floating around” would be the total of all the requests in front of council.
“We’re going to consider everybody’s asks, but we’re going to be funnling that down specifically for essential infrastructure, specifically for public safety, and the investments to be able to catch up particularly in those areas that will save money in the long run,” Farkas said.
“Just because you ask for something, doesn’t mean you get it.”
Global News has learned city councillors were provided workbooks to rank and prioritize the budget requests in front of them, in which many aren’t expected to make it into the finalized four-year spending plan.
City councillors have already directed administration to refine the preliminary property tax increases after a narrow 8-7 vote following the July 28 meeting.
Although the council direction was confidential, it was included in the slew of documents obtained by Global News.
