Calgarians will get a preview Tuesday of proposed adjustments to the city’s four-year budget plan.

The city council ordered the administration to keep the tax increase for 2025 at 3.6 percent. However, senior officials indicated in a September overview that 4.5 percent was a more likely proposition.

Administration told council that years of revenues not keeping pace with growth and inflationary pressures mean more tax revenue is needed if the City of Calgary is to achieve council’s top priorities.

The preview showed that recommendations would be made for some spending reductions in the budget, but spending increases in priority areas would also be proposed.

Calgary’s continued population growth poses a major challenge for the city. The administration noted that the city welcomed more than 69,000 residents last year and the population has now crossed the 1.5 million mark.

This growth puts pressure on public services and increases the need for additional infrastructure. The budget adjustments are expected to result in a 6 percent increase in wastewater, wastewater and stormwater rates.

In 2024, the city incurred unexpected expenses to deal with problems related to the Bearspaw South Main, which ruptured in June. The pause triggered months of repairs and water use restrictions for Calgarians.

Combined with growth and the need for greater water system redundancy, city officials are planning several major infrastructure improvements. That list includes a second water treatment plant near Bearspaw Dam and two new supply lines in the coming years, one for the fast-growing north end and a new one for the south as well.

Minimize tax increases

Mayor Jyoti Gondek said she wasn’t happy that the starting point for this year’s budget debate was higher than council anticipated.

“The fact that the administration didn’t follow the board’s guidelines – which was an increase of only 3.6 percent, and they came back with a 4.5 percent increase – will be the first thing we “We will discuss the fact that the council’s directives were not followed with this budget,” he added. » said Gondek.

The mayor said delivering on core priorities like public safety, infrastructure, transit and housing is key to these budget adjustments in a rapidly growing city, but any further additions will be considered “very carefully” .

Advice. Sonya Sharp, a fiscal conservative, said she would push the administration to find more savings in the budget and minimize any property tax hikes.

“I know council members will propose measures that will increase the budget, but I will propose measures that will reduce the budget,” the Ward 1 councilor said.

“We made a promise to Calgarians.”

Last year, the council approved a 6.66 percent tax increase for homeowners. However, this increase was compounded by a 12 percent increase in the provincial share of property taxes.

In total, that meant an annual tax hike of nearly 8.5 percent for owners of a home worth a median of $610,000. This represented an increase of more than $25 per month for the owner.

Council will begin its annual budget debate on November 18 with a public hearing, giving Calgarians the opportunity to have their say on the proposed budget adjustments.