Calgary city council caps property tax revenue increase for upcoming 4-year budget
Global News
According to administration, the City of Calgary needs the average revenue generated by property taxes to increase 3.65 per cent annually over the next four years.
Calgary city administration said it needs more money from property taxes to maintain city services in the next budget due to population growth and inflation concerns.
The city needs the average revenue generated by property taxes to increase 3.65 per cent annually over the next four years, according to administration.
On Wednesday, councillors voted in favour of placing a cap on the increase to average property tax revenue.
“If we don’t set boundaries, the world is their oyster,” Ward 1 Coun. Sonya Sharp said. “We don’t have blank cheques, and neither do Calgarians; so we needed to set a ceiling, not a floor.”
Despite the forecasted increase in property tax revenue, Calgary’s mayor said the budget is on par with last year, but inflation and population growth factored in.
“Since we have not had a full unpacking of the budget, what we’re recommending is that we don’t increase the budget over what it was last year,” Jyoti Gondek said. “So that’s essentially what you’re getting.”
According to city administration, the Consumer Price Index inflation for Calgary was at 8 per cent in May; the highest it’s been since December 2002.
The latest information and expectations on rate policy decisions by the Bank of Canada indicate annual inflation is expected to average 5.6 per cent in 2022, administration said.