Takeover of EMS could trim proposed property tax hike

It appears city hall will be able to trim one big-ticket item from a three-year budget that would see property taxes in Calgary go up by more than 23 per cent.

The provincial government has all but guaranteed that it will take over ambulance service from the City of Calgary in April. That would trim $20 million off the city's budget in 2009, $22 million in 2010 and $28 million in 2011.

Howard May, who speaks for the provincial Health Department, confirmed that Health Minister Ron Liepert has introduced  legislation that will formally transfer responsibility for ambulance services to the province from municipalities.

May says the legislation will be passed before Christmas and will take effect on April 1.

Pass on savings

Mayor Dave Bronconnier said Emergency Medical Services makes up about two per cent of the city budget and if the province pays the tab, the city will pass on the savings to taxpayers.

Those costs were included in the budget because there has been some doubt the province would follow through on it's promise, the mayor said.

In 2005, the last time the province pledged to take over ambulance costs, it didn't happen and a number of municipalities were unexpectedly stuck with the bill, he said.

"To be prudent and to ensure that we have an EMS system that operates we've not only accommodated full year funding for 2009 to [2011], but we've also added 55 additional paramedics to meet the growing demand for the EMS service."

City of Calgary staff unveiled a proposed three-year operating budget Thursday worth $7.9 billion – nearly $1.5 billion more than was spent in the last three years – with the largest expenditures on police, emergency services and transportation.

The extra spending is blamed on the city's recent unprecedented growth. To cover the bills, property taxes would have to rise 9.6 per cent in 2009, 6.8 per cent in 2010 and 6.9 per cent in 2011.