The new council was talking about tax rates in new ways and moving away from the previous “indicative rate” that used to come around this time of year.
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The Calgary City Council took a first step in its four-year budget process on Wednesday, but the numbers won’t necessarily give homeowners a clear picture of what their next tax bill will look like.
Announcement 2
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The new council was talking about tax rates in new ways and moving away from the previous “indicative rate” that used to come around this time of year.
“Historically, we’ve talked about the budget in weird ways,” said Mayor Jyoti Gondek. “We have talked about indicative rates. We have spoken of a percentage increase in taxation. We’ve said all these things that aren’t really a complete reflection of what we’ve done.”
Calgary Chief Financial Officer Carla Male tried to spell it out in clearer terms for council members. He said based on projections, and after fees are collected, the city estimates it will need an average annual increase in tax revenue of 3.65 percent per year over the next four years just to keep up with growth in the population and inflation.
Announcement 3
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That’s an increase in the total tax revenue the city needs to collect. It does not mean that tax rates will increase 3.65 percent year over year.
Even if tax rates don’t increase, a homeowner’s tax bill could be even higher if their home increases in value.
“The only thing we got early in the game is an understanding of property’s assessed value, which means we’ll probably generate enough property taxes that the part of the budget that needs to be covered by property taxes can be covered without a raise.” your property tax rate,” Gondek said.
Earl Sonya Sharp said that following advice from the council, the administration will use the 3.65 per cent number as the ceiling for its budget planning.
“Today we are not raising property taxes by 3.65 percent,” Sharp said. “This is a cap for management to go back and think about the revenue generated to meet those parameters.”
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But Sharp said they’re not setting a floor and the administration is free to find creative ways to save money.
The Council also analyzed the rates for waste, recycling and water.
Garbage cart program fees are expected to increase 2.8 percent annually over the next four years based on current projections. While homeowners currently pay $24.30 a month for blue, black and green carts, that will likely increase to $27.10 by 2026.
Landfill fees at waste management facilities are expected to remain unchanged.
Water bills and stormwater management fees are also expected to remain flat, but sewage collection and treatment fees are expected to rise 2.5 percent annually over the next four years.
Council approved the recommendations 14-1, with Ward 13 Count. Dan McLean objected.
Final deliberations on the budget will take place in November. Gondek said the direction set Wednesday should help keep the city’s base budget at a consistent level, taking growth and inflation into account.
“What we saw today is a carefully considered and thoughtful recommendation that was put together by the administration and endorsed by the board that says we understand this is a very difficult time,” he said. “We will keep the budget stable, but we understand that you have to take into account inflation and population growth.”
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