Calgary council taps into reserves to increase spending while budget talks continue

Mid-cycle budget talks continue at city hall City council continues to go through budget changes, but there were little savings and more spending on Thursday.

Calgary councillors are dipping into city reserves to fund several projects while attempting to hold the line on property tax increases next year. More than three dozen amendments to the proposed mid-cycle budget adjustments are being discussed as council determines possible spending and savings.

As of 6 p.m. on Thursday, most of the amendments that were passed increased spending through one-time funding sources, while all of the attempts to cut from the budget were defeated.

Calgary will dip into its Fiscal Stability Reserve to provide $9.5 million for a new police firearms range and $15 million over two years was pledged to initiate recreation projects and upgrades, including at the Village Square Leisure Centre.

Council also decided to use $20 million from Future Capital Reserves to boost pavement improvement programs on roads.

"The reserves will run dry and guess what happens when reserves run dry? You have to increase taxes. So what are we doing? Setting everybody up for failure in the next budget cycle," said Coun. Sonya Sharp, the ward 1 representative.

As it stands, combined property taxes are still set to increase by 3.6 per cent in 2025.

"We could either increase taxes by increasing the budget for things that are needed like pavement quality, infrastructure, recreation facilities, but we knew we couldn't do that this year," said Mayor Jyoti Gondek.

"This year, we had to stay true to what we said in 2022 that the budget wouldn't increase beyond 3.6 per cent. Calgarians can't afford it."

Failed amendments

Amendments that failed include attempts to order the city's chief administration officer to find $2.5 million in savings in its executive budget; a motion to withdraw $10 million from the Secondary Suite Incentive Program; and an ask to move away from a transition to electric buses.

A motion to instead shift just 0.5 per cent of the tax base from non-residential to residential instead of a full per cent also failed, which would have saved the average single family home about $12 per year.

"So far, every time we're looking for savings, it's getting shut down. They call this the 'hold the line budget.' In reality, it's $600 million in increased spending," said Ward 13 Coun, Dan McLean.

Council also voted in favour of providing funding to keep the Inglewood Aquatic Centre open for another two years, however another reconsideration motion is needed to finalize the decision at another meeting.

The meeting on mid-cycle budget adjustments is set to continue at 1 p.m. on Friday.