Calgarians weigh in on city's new budget

After a debate that Calgary Mayor Jyoti Gondek described as "difficult for everyone involved," city council has passed a budget that includes a residential property tax increase of 7.8 per cent.

Gondek said one of the reasons for the increase is the fact the city has been forced to invest in things that should properly be the responsibility of other levels of government. She points to the city's housing strategy, and mental health and addictions programs, as examples.

"That is not a responsibility that should be living with the city. That is absolutely federal and provincial responsibility. And we're just not getting the assistance we need," Gondek told the Calgary Eyeopener.

But she said the problems faced by some city residents left council with no other option.

"People are dying in our city. We can't sit by and say, 'It's not our responsibility.'"

Part of the residential rate increase is due to a tax shift that places more of the tax burden on homeowners, rather than business owners.

Deborah Yedlin, the president and CEO of the Calgary Chamber of Commerce, said she would have preferred a larger share of the tax burden be shifted off business, but called this week's budget "a step in the right direction."

"We have very competitive residential rates, relative to other cities across the country. And when you look at it on the flip side, from how competitive we are relative to other jurisdictions from a business tax standpoint, we are definitely not competitive," Yedlin told the Eyeopener.

"That burden has been disproportionately shared and if we want to have a vibrant city with businesses that are supported and can continue to grow we need to make sure that that balance is shifted."

She said the tax shift will mainly benefit small business owners and that it's important to think about this in terms of the texture of the city's business landscape. 

"Nobody wants to be in a city where all you see are big-box retailers and national chains," she said.

"What makes a city interesting is all the small businesses that give us the variety."

Six members of council voted against the budget adjustments. 

Ward 1 Coun. Sonya Sharp says the city is projecting another budget surplus — yet it's raising taxes at a time when many homeowners want a break.

"It would be one thing if this was only one additional cost that Calgarians will be facing. But it isn't. We approved a tax shift on top of more responsibility going to residents," Sharp said.

CBC News hit the streets to ask Calgarians what they think of this week's city budget.

Monica Ruff said she was surprised city council approved the residential property tax hike, but she's resigned to paying more each year for her inner-city home.

"Our taxes are pretty low when I compare taxes to my relatives that live in other parts of the country," she said. "I guess it's time that [rates] went up."

Ruff also said she's on the cusp of retiring, but she can absorb the extra costs without too much financial strain. 

Brian Hannigan does not support the tax shift. 

"I think it's outrageous. Every time we turn around we're getting taxed for this and taxed for that," he said. 

Hannigan said the city should spend less money, instead of boosting residential property taxes. He said rising rates will impact him "a lot."

"Every penny counts … I'm barely getting by. I don't know how the rest of the world is getting by," said Hannigan. 

Pat Foisey believes the city is spending money on unnecessary projects, but welcomes shifting the tax burden off non-residential property owners.

He said his company wants to hire more employees, but taxes make it difficult to grow.  

"It won't make a huge difference today, but at least it's going down," he said. "If the needle's pointing downwards, it's not going upwards." 

Meaghon Reid, executive director of the anti-poverty group Vibrant Communities Calgary, said additional social spending will offer much-needed relief to vulnerable residents, but higher residential property taxes will put pressure on many already struggling to meet their basic needs.

"The level of panic and anxiety that people are feeling every day is extraordinary, in terms of their finances," said Reid. 

"We've never seen what we're seeing now at Vibrant Communities Calgary. And we have a lot of people that have worked in poverty reduction for decades."

A recent report published by the University of Calgary's School of Public Policy suggests more than 115,000 Calgarians living in 40,000 households are at high risk of falling into homelessness.