Calgary city budget debate: 3 things you need to know - Action News
Home WebMail Saturday, November 23, 2024, 07:08 AM | Calgary | -12.2°C | Regions Advertise Login | Our platform is in maintenance mode. Some URLs may not be available. |
CalgaryBlog

Calgary city budget debate: 3 things you need to know

Normally council sets aside a week as the worst case scenario to approve a three-year budget. This year it's a four-year plan so council is doubling down and setting aside two weeks to get the job done.

Big issue is 4.7% property tax hike proposed for each of the next 4 years

Calgary's city council will begin two weeks of budget debates on Monday. (CBC)

The annual city budget debate is always a highlightat city hall.

The mayor likes to repeatedly say that no other level of government allows citizens to watch (ifthey wanted to watch) their electedofficials pour through a mega-sized budget document like this line byline andbudget item by budget item.

Itall leads to a final vote.

One thing you can sense by watching them go at it day after day isthat at some pointthey do get tired of it and, sometimes, tired ofeach other. Too much time together in asmall space can be astrain for any relationship!

Normallycouncil sets aside a week asthe worst case scenario to approve a three-year budget. This yearit's a four-year plan so council is doubling down and setting asidetwo weeks to get the job done.

This is going to cost you

The big headline is this a4.7 per cent property tax hikein each of thenext four years.

Some say that's only$75 a yearmore tax for the average-priced house, but the reality if this budgetpasses is thatyou'll pay much more.

First, your 2014 property tax bill came with a $100 credit for thataverage-priced house. This credit came courtesyof a one-time creditof $52 million.

That credit won't be on your 2015 tax bill, so your $75 tax increase just became a $175 jump in property taxes. Now about your utility bill: it's approximately $100 more a year under this budget.

So now, average homeowner, you're looking at $275 more in 2015if this budget is approved. Transit fareswill go up 15 cents perridefor adultsor increase by about$36 a year if you buy a monthly pass each and everymonth.

Dive deep inthe budget and you learn that virtually every cityfacility (arenas, pools, golf courses, etc.) and service (inspections,business licenses, etc.) will be charging more in 2015.

The picture for each of the other years is the same: alltaxes, rates and fees will be higher.Significantly.

But look what you get!

Some projects have been in the works and others are actually new: three new interchanges, four-car LRT trains, anew central library,10 more police officers, two new city parkades downtown andtwo creaky inner-city bridges (zoo andInglewood) will be replaced.

There will also be four new recreation centres, agreen cart program for your compost, new fire stations and500 new full-time equivalent jobsat the City ofCalgary to meet the needs of a growing population.

So what will they tinker with?

This budget calls for a reduction in the projected growth of transitservice hours. Several members of council havealready signalled theydon't like that.

In a fast-growing city trying to wean people fromdefaulting to their cars and pick-up trucks, the transit option is still inneed of some care and attention. Look for a number of councillors topush for moretransit hours.

Similarly, memories remain fresh of last winter's heavy snowfallthatleft people trapped in theircommunities and an emergency clean-upplan that left some homeowners waiting weeks for a plow to show up.Some will debate a change to the current snow and ice control plan.

Remember, any additions boost your tax hikeeven further if there areno corresponding cuts in spending. While some fiscal hawks on councilvow to look for cuts,there's no word yet on what councillors want todo away with.

What could go wrong?

The key assumption in this four-year taxing and spending plan is thatCalgaryis forecast to grow by 25,000 people a year forthe next four years.Last year, it grew by 38,000 people.

If Calgary's population continuesto grow by more than25,000 a year, all other assumptions in thisbudget need to be redrawn. As a good number of Calgary councilmembershave said over the years, when people move to Calgary they don't bringpolice officers, firefighters,interchanges and water lines with them.

All Calgarians shoulder that load. The costs of growth only continueto rise.

CBC city hall reporter Scott Dippelwas in council chambers tweeting the budget developments. Follow along in the box below: