With inflation raging at levels not seen in 40 years and a recession looming, the City of Calgary administration recommends city council approve an increase of $734 million in operating budgets between now and 2026..The 2022 budget is $4.129 billion, with administration recommending a spend of $4.364 billion in 2023, $4.526 billion in 2024, $4.697 billion in 2025 and $4.863 billion in 2026..I’ll do the math for you — that's a total of $22.579 billion spent over five years or, as city manager David Duckworth calls it, “investments.”.“The investments we’ve proposed will further our economy, city-building, community supports, public safety and anti-racism programs, enable investment and innovation in the business community and reduce climate risk. And that’s just the beginning,” said Duckworth in a statement..“We’ll continue to deliver the services Calgarians count on every day, while responsibly investing public funds that result in long-term benefits for our city.”.That’s quite the political speech for an employee of the City of Calgary, especially the parts about making the city a better place, without backing up the claims..And the investors? Calgary taxpayers..The report from administration says total property tax revenues required to fund these ‘investments’ are $11.246 billion. The projected changes in total property tax revenues are 5.9% in 2023, 4.7% in 2024, 5% in 2025 and 4.4% in 2026. That’s a 20% hike in property taxes over the course of four years..An additional $11.486 billion of non-tax revenues will help fund the investment..According to the city, non-tax revenues include: revenues from rate and fee-based services such as utilities, transit fees and recreation entry fees, franchise fees and ENMAX local access fees, revenue from fines levied by the courts and from fines and penalties under city bylaws, revenues from building and development permits and others, ENMAX dividends, return on water and Calgary Parking Authority, investment income, developer contributions, Community Revitalization Levy, local improvement levies, grants in lieu, and gain in sales of tangible capital assets, and other miscellaneous revenues..Everything above that's identified as a rate or a fee is a tax..The administration's plan is laid out in a 41-page document and on page 7, the city proudly says, “The projected increase in City expenditures is well below the inflationary costs experienced by average Albertans in 2022.”.It provides a list of the rates of inflation for different cost types experienced by Albertans in 2022, which includes energy +7.8%, food +28.1%, shelter +6.4%, household operations, furnishings and equipment +4.6% and transportation +15.5%..Looking at that list, you see the areas where Albertans have cut expenditures in order to stay within their budgets..Nowhere in the city’s document is there any mention of reviewing costs and reducing them. Sadly, the entire document reads like the City of Calgary’s ‘sunny ways.’ You’ve heard that phrase before and you know how it ended..Also in the document is a list of council’s guiding principles, and at the top of the list is “Strengthen relationships with Calgarians.”.Yep, throwing a 20% property tax hike over four years is really going to cement those bonds..“And that’s just the beginning,” said Duckworth..It begs the question: What does he have in mind for the end?
With inflation raging at levels not seen in 40 years and a recession looming, the City of Calgary administration recommends city council approve an increase of $734 million in operating budgets between now and 2026..The 2022 budget is $4.129 billion, with administration recommending a spend of $4.364 billion in 2023, $4.526 billion in 2024, $4.697 billion in 2025 and $4.863 billion in 2026..I’ll do the math for you — that's a total of $22.579 billion spent over five years or, as city manager David Duckworth calls it, “investments.”.“The investments we’ve proposed will further our economy, city-building, community supports, public safety and anti-racism programs, enable investment and innovation in the business community and reduce climate risk. And that’s just the beginning,” said Duckworth in a statement..“We’ll continue to deliver the services Calgarians count on every day, while responsibly investing public funds that result in long-term benefits for our city.”.That’s quite the political speech for an employee of the City of Calgary, especially the parts about making the city a better place, without backing up the claims..And the investors? Calgary taxpayers..The report from administration says total property tax revenues required to fund these ‘investments’ are $11.246 billion. The projected changes in total property tax revenues are 5.9% in 2023, 4.7% in 2024, 5% in 2025 and 4.4% in 2026. That’s a 20% hike in property taxes over the course of four years..An additional $11.486 billion of non-tax revenues will help fund the investment..According to the city, non-tax revenues include: revenues from rate and fee-based services such as utilities, transit fees and recreation entry fees, franchise fees and ENMAX local access fees, revenue from fines levied by the courts and from fines and penalties under city bylaws, revenues from building and development permits and others, ENMAX dividends, return on water and Calgary Parking Authority, investment income, developer contributions, Community Revitalization Levy, local improvement levies, grants in lieu, and gain in sales of tangible capital assets, and other miscellaneous revenues..Everything above that's identified as a rate or a fee is a tax..The administration's plan is laid out in a 41-page document and on page 7, the city proudly says, “The projected increase in City expenditures is well below the inflationary costs experienced by average Albertans in 2022.”.It provides a list of the rates of inflation for different cost types experienced by Albertans in 2022, which includes energy +7.8%, food +28.1%, shelter +6.4%, household operations, furnishings and equipment +4.6% and transportation +15.5%..Looking at that list, you see the areas where Albertans have cut expenditures in order to stay within their budgets..Nowhere in the city’s document is there any mention of reviewing costs and reducing them. Sadly, the entire document reads like the City of Calgary’s ‘sunny ways.’ You’ve heard that phrase before and you know how it ended..Also in the document is a list of council’s guiding principles, and at the top of the list is “Strengthen relationships with Calgarians.”.Yep, throwing a 20% property tax hike over four years is really going to cement those bonds..“And that’s just the beginning,” said Duckworth..It begs the question: What does he have in mind for the end?
