Calgary weighing new property tax levy for aging infrastructure
City administration is proposing a dedicated infrastructure levy as council grapples with a $49-billion capital spending gap over the next decade.
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Calgary is considering a new property tax levy to fund infrastructure repairs—one of several options city council is weighing to close a massive funding gap.
Administration's report suggests an infrastructure renewal levy could create dedicated, transparent funding for local needs. The proposal comes after last winter's water main break put the infrastructure crisis front and centre for residents and councillors alike.
"Another dollar to make sure our roads work, another dollar to make sure that our parks work — Calgarians can accept that. But there has to be clear outcomes," said Ward 6 Coun. John Pantazopoulos.
The city needs at least $49 billion in capital spending over the next decade on aging infrastructure. No single tool will fix it. Other options on the table: increasing the current property tax portion dedicated to infrastructure, seeking more external funding from other levels of government, selling municipal assets, using tax-supported debt, or redirecting reserve balances.
Ward 4 Coun. DJ Kelly said the gap partly stems from underfunding by past councils. "You can see in your neighbourhood broken sidewalks, broken playgrounds," he said. "There's no magic bullet to this. At some point, somebody needs to pull out their pocketbook."
Council is working on a 10-year capital plan to prioritize what the city needs most: water systems, roads, bridges, transit buses, and community playgrounds—many of which are at risk of closing in the next decade. When preparing the city's next four-year budget this fall, council will need to commit continued investment to infrastructure as Calgary approaches two million people.