Mayor's new budget proposal softens Calgary tax hike
Majority of council wants budget, tax increase scrapped
Calgary Mayor Dave Bronconnier came out with revised budget numbers late Thursday that shave almost four percentage points off a proposed tax increase of 23.3 per cent over three years.
The announcement came as eight out of 15 council members prepared to reject the three-year budget, saying it was so flawed, it should be tossed out.
By removing money allocated for Emergency Medical Services and diverting profits from city utility Enmax, the blow from the proposed tax hike can be softened, said Bronconnier and finance committee chairman Ald. Gord Lowe Thursday evening.
The pair will propose that on top of its annual $35-million contribution to city coffers, Enmax divert an additional $8 million, originally slated for parks, to the city's general revenues.
As well, the province has confirmed it's taking over responsibility for EMS on April 1, 2009, which negates funding set aside for the service in the city budget.
| Proposed tax increase | Revised | Original |
|---|---|---|
| 2009 | 6.8 % | 9.6 % |
| 2010 | 6.2 % | 6.8 % |
| 2011 | 6.5 % | 6.9 % |
| Source: City of Calgary | ||
Bronconnier and Lowe's revised proposal would mean residential property taxes would go up by 6.8 per cent in 2009, 6.2 per cent in 2010 and 6.5 per cent in 2011, compared to 9.6 per cent, 6.8 per cent and 6.9 per cent, respectively, in the former plan.
But a majority of aldermen said Thursday that they plan to support a motion next week that would send the proposal back to city staff with instructions to come up with a tax increase closer to the annual rate of inflation — which is about four to five per cent.
"We're not some renegade, runaway aldermanic group," said Ald. Joe Connelly. "We're inviting our other colleagues to come onboard with us and work together with senior administration to look at the budget in great detail — even line by line if we have to go down that road — to come up with some solutions to the present dilemma we find ourselves in."
Council members were getting detailed briefings from city staff Thursday on the proposed operating budget for 2009-2011 that amounts to $7.9 billion.
Ald. Diane Colley-Urquhart, who plans to introduce the motion on Monday to start over and come up with a one-year increase in the three to five per cent range, said much of the budget was preapproved by council.
"You can't make any amendments to 90 per cent of the budget, so you're really just nibbling around the edges with 10 per cent, which is a problem," she said.
Ald. Andre Chabot is among the council members who want to see the budget scrapped. Coupled with user-fee increases, the hit to taxpayers would be closer to 30 per cent, he said.
"I think that's the right thing to do to be honest with you. I think this is the time to do that," he said.
Also supporting the motion are aldermen Jim Stevenson, Ray Joes, John Mar, Dale Hodges and Ric McIver.
Extra spending blamed on city's growth
City of Calgary staff unveiled the proposed three-year operating budget on Nov. 7. It calls for extra spending of nearly $1.5 billion, with the largest expenditures on police, emergency services and transportation.
At the time, Bronconnier blamed the extra spending on the city's recent unprecedented growth.
"Protective services is a priority for this community," said Bronconnier. "It costs money for those services, it costs money to protect the environment, and it costs money to run the transit system."
The original 23.3 per cent tax increase proposal would mean paying an extra $99 in 2009, $78 on top of that in the second year and an additional $84 in the third year for the average home valued at $430,000. Council will vote on a final budget at a Nov. 21 meeting.
Some budget money has already been spent. For example, in September, city council fast-tracked a plan to spend $25 million to hire 201 more police officers over the next three years.
A committee has also approved new garbage pickup fees, along with higher sewer and water fees, which are expected to pass easily at the Nov. 21 meeting.
Factor in those and other user-fee increases, and the total impact on the average homeowner's monthly budget would be $24 in the first year, $16.50 more in the second and an additional $14.50 in the third.