Nenshi takes a ‘guess’ at 0.8 to 1% tax increase on day 1 of budget talks

Mayor Naheed Nenshi is guessing Calgarians will be looking at a 0.8 to one per cent tax increase when the next four-year budget is tabled.

“I suspect we will end up somewhere close to what administration was proposing with the police added in,” Nenshi said on day one of the city’s budget deliberations.

“So we’ll end up somewhere between 0.8 to one per cent tax increase on 2018. That’s just a guess.”

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That tax hike doesn’t include the 2.9 per cent that will have to be paid back from a one-time 2017 rebate. That increase will show up on 2018 bills, according to city documents reviewed on Monday.

The rebate was given thanks to $23.7 million in tax room that the province wasn’t taking from the city. Council voted at the time to give that money back to residents.

Now, the administration is saying they want to keep that money to cover off debt servicing costs for the Green Line LRT project.

Along with the discussions of tax increases, the city is also exploring several budget cuts from public services, including:

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• $6.83 million from Calgary Transit
• $4.26 million from roads work
• $4.78 million from the Calgary Fire Department budget
• $2.83 million from the parks department

Those cuts would come in the form of minimizing paid benefits and job losses.

It’s expected the city will be looking at a $146-million shortfall this year, due to an expected 4.7 increase that was projected before the economic downtown.

Earlier this month, the city quelled suspicions that residents might be looking at a 4.7 per cent hike in property taxes, saying it was instead mulling over a zero per cent property tax.

Nenshi said that zero budget didn’t take into consideration the Calgary Police Service request of more than $14 million for increased staff, or the 2017 tax rebate.

Budget deliberations are set to go on all week at city hall, as the new council is working to establish a working guideline for its entire four-year term.

Watch from Nov. 16: City council is looking at freezing the city’s portion of next year’s property tax bill. Doug Vaessen has details.

2:03 Council to consider property tax freeze

— With files from News Talk 770’s Aurelio Perri