The average single-family home in Calgary will see a property tax increase of 5.2 per cent next year, if the proposed four-year budget is approved by city council later this month.
The upcoming budget was released publicly for the first time on Tuesday, when it was presented to city council ahead of deliberations later this month.
It comes as Calgary saw a significant increase in assessed property values, which included a 14.4 per cent jump in the value of the average single-family home from $485,000 in 2022 to an anticipated $555,000 in 2023.
The 5.2 per cent property tax increase on the average Calgary home equates to roughly $120 more next year, or an extra $10 per month.
The overall property tax increase, which includes both residential and non-residential properties, is expected to be 4.4 per cent next year with an average increase of 3.7 per cent over the next four years.
The increases to property taxes also remain contingent on city council decisions on spending as well as the tax distribution between homes and businesses.
It comes after city administration told council in July that it would need revenues from property taxes to increase by 3.65 per cent annually to keep pace with inflation and population growth, which council set as a cap for the next four years.
“We did our best, together with administration, to make sure that the increase you are facing is based on inflation and population growth,” Calgary mayor Jyoti Gondek said. “They were actually able to come in with a percentage that’s lower than your on-average consumer goods inflation.”
- McLean accuses Calgary third-party advertiser of ‘whipping votes’ in favour of rezoning bylaw
- Canadian curler Chelsea Carey says don’t compare me to Jennifer Jones
- Firefighters battle blaze at vacant house in northwest Calgary
- 7 sent to hospital after carbon monoxide poisoning incident in northwest Calgary
Household expenditures went up by 7.2 per cent in Calgary due to inflation this year.
Ward 1 Coun. Sonya Sharp told reporters she felt the tax increase would be perceived negatively, but added that Calgarians have asked for “things that cost money,” like investments in public safety and infrastructure improvements.
Sharp added there will be work “behind-the-scenes” over the next two weeks to reduce the impact on Calgarians.
“We told (administration) to be innovative, and they were,” Sharp said. “We have to keep that number where it is or a little bit lower if we can.”
The four-year budget also proposes an increase to some city fees after many were frozen at 2021 levels due to the COVID-19 pandemic.
Monthly waste cart programs fees are expected to cost $25 in 2023, with the cost for blue, black and green carts expected to increase to $27.10 per month by 2026.
According to the budget documents, the minimum residential flat rate for water is expected to remain the same monthly charge over the next four years at $46.17.
Calgary Transit fees would also see increases across the board through the four years of the proposed budget.
Adult single passes would go from $3.60 to $3.70 in 2023, then increase to $3.80, $3.90 and $4.00 for each year after. Monthly adult passes would go from $112 to $115 in 2023, then incrementally increase to $126.00 by 2026.
Seniors regular annual transit passes would be increased from $150 to $154.50 in 2023, then see a $5 increase for each year of the budget.
Deeply discounted low income passes for bands A, B and C will also see moderate increases in 2023.
“We do not use user fees as a way to supplement property tax revenue if we find that we need more,” City of Calgary CFO Carla Male told reporters. “There is a user-fee policy that’s based on the underlying cost of the service and the relative part of that service that is of personal benefit that individuals pay for.”
The operating budget for 2023 sits at $4.68 billion and is expected to rise to $4.9 billion by 2026; a $323M increase over four years.
According to budget documents, the most significant ongoing operating expenditures in the proposed budget include $34.8 million for the Calgary Police Service for increased staffing and continued reform, $23.1 million for Calgary Transit to sustain service levels and improve service frequency, as well as $18.1 million for street and sidewalk maintenance.
The budget also includes proposed one-time funding, including $40.8 million for climate and environmental management to scale up work in the city’s climate strategy to achieve the city’s goal of net-zero emissions by 2050.
Administration is also recommending $159 million in one-time funding to preserve heritage assets, provide user- and business-friendly planning policies and deliver programs to revitalize downtown.
The city’s capital budget is also expected to increase to $10.2 billion by 2027 due to $4.4 billion in new capital funding requests as well as $5.7 billion in previously approved funding like $4.3 billion for the Green Line and $102.7 million for utilities.
Calgary Transit is recommended to receive a $559 million capital investment to purchase 25 new LRT cars and electric buses. $76 million in capital funding is also recommended to go to Calgary Police for equipment, facilities and recruitment.
The capital budget also includes a recommended investment of $153 million for affordable housing, and $170 million for public realm improvements and downtown revitalization projects.
City officials said there will be continued progress on infrastructure investments for builds like the Green Line, the BMO Centre expansion and the Arts Commons transformation, with ongoing work towards an Event Centre and Field House.
“It’s very much a status quo budget, and I don’t love that,” Ward 8 Coun. Courtney Walcott told reporters. “Calgarians are looking for services. Calgarians are looking for the city to provide safety, the city to address crime, the city to address transit, and the city to grow the value that we provide to them.”
Budget deliberations will begin the week of Nov. 21, with Calgarians getting a chance to have their say on the budget during a public hearing on Nov. 22, or by submitting written feedback on the city’s website.
Comments