Calgary city councillors voted down a proposed reconsideration of the 2024 budget, with many saying the investments being made are ones Calgarians asked for.
The item was brought to a Regular Meeting of Calgary city council on Tuesday, with Ward 7 Coun. Terry Wong wanting to reopen the budget, which was approved last November after three days of debate and 10 months of discussions.
Wong wanted to send the document back to city administration to find $23 million in savings for 2024 to mitigate the one per cent shift from non-residential to residential property owners. It also asked for the same to be sought for the 2025 budget to absorb another one per cent shift planned for next year.
He said residents didn’t have the proper information about the impact of the tax shift.
“Residents have indicated that this shift was never provided to them in information sharing, particularly when the budget was discussed as an early release in September and again in November when the final budget plan was presented,” Wong said.
“I think the residents were right that we did not necessarily consult with them as to what this impact would mean to them.”
Prevailing councillors generally said that undoing all the work put in over the past year would set the city back, not move it forward. In a recent Executive Committee meeting, City of Calgary CFO Carla Male said that should they take on this work to find cuts, they would have to stop work on implementing other investments.
“Every single thing that we put through in that budget was something that came from a place that Calgarians demanded of us,” said Ward 8 Coun. Courtney Walcott.
There was some conversation about the potential reconsideration being in contravention of the Municipal Government Act. There, it states a council must approve a budget by Jan. 1 of a calendar year. At that time, the reconsideration of the budget was removed. Instead, councillors opted to vote on coming back with $23 million in cuts. That was voted down.
‘Worst possible time’
Ward 1 Coun. Sonya Sharp said that Calgary city council, in the four-year budget process told citizens to expect a 3.4 per cent property tax increase for 2024. She said nine members of city council voted to more than double it.
“I don’t know whether the rest of you have had a chance to talk to your constituents about this but mine are sure not impressed, and it comes at the worst possible time for them,” Sharp said.
“Most people’s finances are strained right now, and an eight per cent increase is completely tone deaf.”
Sharp also said that next year’s tax increase would start at 5.5 per cent.
Ward 12 Coun. Evan Spencer said it’s not unreasonable to try to find $23 million in savings – it’s the process that’s flawed.
“As administration has already talked to you about the opportunity loss associated with reconsidering decisions that have been made and work that is in flight, it negates a lot of the good of going through the exercise of reviewing what we spend as a city,” he said.
“I’m not thrilled about this kind of process. It feels wrong, feels like we’re re-litigating a decision we just made capitalizing on the politics of the moment.”
Councillors did vote in favour of a motion arising by Mayor Jyoti Gondek to discuss the priorities of council for the 2025 budget. That included finding potential “service efficiencies.”
Ward 10 Coun. Andre Chabot noted the same councillors opposing finding cuts today would be supporting the mayor’s motion to find potential cuts later this year for the 2025 budget. He said he found it amusing due to the exploitation of political opportunity leading up to next year’s municipal election.
