City councillors approved allocating $7 million in one-time funding toward burying utility units city-wide, with a focus on increasing the number multi-residential developments in established neighbourhoods.

At the July 29 regular meeting of council, councillors in favour of Ward 9 Coun. Gian-Carlo Carra and Ward 11 Coun. Kourtney Penner’s Notice of Motion, which sought to increase the number of housing starts by putting utilities underground.

Utility units installed at the exterior of residences have made it harder for 57 per cent of multi-residential developments to achieve building permits, since 2023.

Reiterating that underground utilities make the permit-attaining process less cumbersome, Coun. Carra said that this ultimately allows homes to be built faster.

“Right now, we know there are projects that will not get built, or will get delivered with significantly less housing units if we don’t address these problems,” he said. 

Since the city initiated its Shallow Utility Burial Pilot Program, almost $2 million from the Housing Accelerator Fund Program has eliminated red-tape that comes with external utilities, and has fast-tracked the building of around 300 homes. 

Originally, the motion asked for $10 million, and Coun. Carra referenced the success of the program when justifying the motion’s request for supplementary funding.

“That’s the only way we’re going to get over the hump of some of these difficult inner city environments where we want to see development,” he said. 

“But unless we come in with public funding to address some of the public infrastructure constraints, it’s going to be a long time to see housing.”

Despite the approved sum having shrunk by $3 million, the motion directed city administration to consider how the utility burial pilot program could be permanently funded in the future.

That is set to be discussed by a new city council in November’s budget meetings.

Council questions priorities amid Calgary housing victories

Ward 2 Coun. Jennifer Wyness said that a request to have Enmax dividends pay for underground utility work created a conflict of interest. 

“Enmax has been granted limited capital, like a limited ability to fund this type of work,” she said.

“Doesn’t that put us in a conflict role, where as a shareholder, we’re competing with ourselves for covering the cost?”

Enmax’s sole shareholder is the City of Calgary. However, Enmax does not receive funding from the city.

Coun. Wyness was one of three councillors to vote against the motion, and said that it seemed like the motion was more concerned with how external utilities tarnish the appearance of a neighbourhood. 

“Most of it is to make the aesthetic of the neighbourhood for something that isn’t a priority,” she said. 

“You can still build and have power lines and all of those assets above-ground.”

But Coun. Carra said that Enmax owns several external legacy wires, and since they do not have the funds to remove them, they must be buried to make the land available for any type of construction. 

“It has to be done if we want to see development take place,” said Carra.

In the first quarter of 2025, Calgary led with the most housing starts nationwide. According to a survey by the Canada Mortgage and Housing Corporation, housing starts in the second quarter of 2025 saw an almost 56 per cent increase from the same time last year. 

Coun. Wyness said that since the city is smashing its goals, she questioned whether putting more money toward a housing-related program was necessary. 

“We’re exceeding our targets set for building housing units greater than 100 per cent, then we’re walking ourselves down something that becomes again, taxpayer-funded,” she said. 

That position was refuted by Coun. Penner, who said that the Housing Accelerator Fund Program could be boiled down to federal subsidies and that over time, the type of housing that the utility pilot program serves will positively impact the city’s revenue. 

“One of the best ways we can increase revenues is by adding new housing onto the market, especially high-density,” she said. 

Coun. Penner said that the program is a win-win for the city and for residents facing housing insecurity.

“This actually helps us get towards our goals faster,” she said. 

“Just because we’ve met our targets doesn’t mean we can’t still do better and continue to exceed them.”