Mayor Farkas says premier committed to smaller property tax hike for Calgary next year
The province has ordered steep tax increases the past two years. Farkas expects next year's provincial boost will align more closely with inflation instead.
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Mayor Jeromy Farkas says Premier Danielle Smith committed to him personally that the province will not impose a property tax increase at the level of previous years.
Farkas expects next year's provincial budget property tax increase will align more closely with inflation. A provincial spokesperson confirmed no budget decisions have been finalized, but said the government looks forward to sharing details before Calgary's budget deliberations begin.
The province ordered a 15.6-per-cent provincial property tax hike last year and a 21 per cent increase this year. Forty-two per cent of residential property taxes collected by Calgary go to the province to fund Alberta's education system. Last year, the combined provincial and municipal property tax increase was 8.1 per cent on average for Calgary homeowners. Farkas wants next year's total property tax increase to fall below that benchmark.
City council reduced a projected 6-per-cent municipal tax hike to 1.2 per cent last year. Preliminary city budget documents show the city is considering a 15-per-cent tax hike internally, though Farkas said that figure is a preliminary "unconstrained wish list" expected to drop before the budget is finalized.
The city is also considering raising average monthly water bills. A city report projected it could cost Calgary at least $49 billion over the next decade to build, maintain and replace capital infrastructure. Farkas identified water supply, roads and bridges as priorities for "life-saving" repairs after multiple catastrophic pipe breaks in recent years.
Coun. DJ Kelly said they're hearing "over and over" from residents who can't afford a significant tax raise. If the province lowers its property tax boost, Kelly said, the city would have more flexibility to balance funding local services with affordability.
What specific property tax percentage will the province impose next year, and when will it be announced?
How much of the city's $49 billion infrastructure gap will be addressed through this year's and next year's budgets?
Will council approve the proposed water bill increase, and by how much?
We'll update this story as answers emerge.
The facts
What property tax increases did Alberta impose in recent years?
The province ordered a 15.6 per cent property tax hike in the previous year and a 21 per cent increase in the current year.
What percentage of Calgary's residential property taxes go to the province?
Forty-two per cent of residential property taxes collected by Calgary are directed to the province to fund Alberta's education system.
What did Calgary city council do with the projected municipal tax hike last year?
City council reduced a projected 6 per cent municipal tax hike to 1.2 per cent.
