The city of Calgary is facing a significant funding challenge as it plans for a budget aimed at meeting the needs of its growing population. The newly elected council is being confronted with the task of balancing the budget while keeping property taxes low, a topic that has remained contentious among residents and candidates alike.
Calgary Council’s Fiscal Dilemma
Last month, the outgoing council previewed a proposed 2026 budget highlighting a potential 3.6 percent increase in property taxes. This increase is aimed at funding essential city services. The newly elected council will need to address these issues shortly after taking office, with the comprehensive budget details arriving just weeks after the October 20 election.
Public Sentiment on Taxes
Residents have expressed a strong preference for maintaining low property taxes. A poll from Janet Brown Opinion Research indicated that this is a top concern for voters over the next four years. Ward 2 resident Daphne Zhao emphasized the need for wise spending, reflecting a common sentiment among Calgarians who are wary of regular tax increases.
- Upcoming municipal election: October 20
- Proposed property tax increase: 3.6%
- Poll indicates low taxes as a high priority
Utilization of Property Taxes
Property taxes provide vital funding for city services such as policing, firefighting, and public transit. They comprise nearly half of Calgary’s municipal revenue, with approximately 63 percent allocated to city services and 37 percent going to the provincial government for education funding.
Shifts in Tax Burden
Calgary has historically been reliant on business taxes, but with rising vacancies in downtown offices, this reliance has been shifting. As of 2025, residential properties are responsible for 54 percent of municipal taxes, reversing a two-decade trend.
Candidate Proposals for Addressing Budget Challenges
During a recent mayoral debate, candidates presented varying solutions to Calgary’s fiscal challenges. Incumbent Jyoti Gondek and other candidates expressed concerns over proposals like tax freezes, which may impact essential services.
- Jeff Davison proposes a four-year property tax freeze.
- Ron Kneebone cautioned that curbing tax revenues could lead to increased fees elsewhere.
- Sonya Sharp aims to enhance budget scrutiny through a finance committee.
- Brian Thiessen calls for a modern municipal charter for better tax sharing.
- Jeromy Farkas advocates for a zero-based budget review.
These discussions highlight the complexity of managing municipal finances while addressing the community’s growing needs. Candidates are forced to navigate the delicate balance between maintaining services and controlling costs effectively.
Looking Ahead
The upcoming municipal election poses crucial questions for Calgary’s future. With an eye on sustainable growth and budget management, the newly elected council will need to make strategic decisions that consider both current challenges and long-term goals for the city.
