Grim 3-year budget scenario laid out for council

City administrators presented council with a grim financial picture on Thursday as they prepare the next three-year budget.

Calgary's chief financial officer Eric Sawyer told council that, even with annual property tax hikes of five per cent in each of the next three years, the city could still have to cut expenditures by $95 million.

About half of that amount could be found by making city operations more efficient, he said.

"No decisions have been made yet. We are looking for direction from council on June 28th around council's plan and priorities as well as indications around rates for taxes, user fees, water, wastewater, waste and recycling rates," he said.

It costs more every year to deliver the same amount of services because of inflation and the city's continuing growth, Sawyer said.

That means tough choices will have to be made, with tax increases the only sure way to expand the city's coffers, he added.   This year, city council raised property taxes by 4.4 per cent and cut spending in some areas.