Council passes budget, includes tax freeze
Calgary city council unanimously approved the 2017 budget in record time on Monday, a document that includes an effective tax freeze by dipping into the rainy day fund to offset a 1.5 per cent property tax hike.
After hearing from city administration and seven members of the public, quizzing speakers, and partaking in a brief debate, Calgary’s elected officials approved next year’s budget around 5 p.m.
“I’m particularly pleased that council has passed this budget,” Mayor Naheed Nenshi told reporters Monday night. “It’s a budget that incorporates an effective tax freeze, that brings forward hundreds of millions of dollars in savings on the capital and operating side.”
It’s expected minor tweaks to the budget could still be made Tuesday.
While tax rates have been frozen, the actual amount of taxes each property owner will pay the city depends on individual assessments.
In particular, the city is telling businesses outside the core to expect some “shock” on their nonresidential property tax bills due to downtown Calgary’s high vacancy rate.
Harvey Fairfield, Calgary’s acting city assessor, said Monday that when assessment notices are mailed out in January, it’s estimated 73 per cent of non-residential properties will see a tax increase, while 79 per cent of businesses will see a tax hike.
“Some of them are going to pay quite a bit more and that’s what council will be discussing (Tuesday), about whether we can cushion that blow for this year, because it will be a bit of a shock for this year alone,” Nenshi said.
Already, in the first nine months of 2016, more than 11,000 Calgary businesses have shut down or moved. On Tuesday, council is expected to discuss the city providing up to $15 million in non-residential and business tax relief.
But Amber Ruddy, Alberta director of the Canadian Federation of Independent Business, said council needs to do more for businesses.
“We’ re looking at something that’ s unprecedented. In the 15 years that we’ve been conducting our business optimism survey, we’ve never seen lower optimism levels than we have this year,” she said.
“We can’t have the City of Calgary going on business as usual while businesses are suffering significantly.”
Entrepreneur and 2017 council candidate David Winkler also addressed council Monday, saying people are suffering during the downturn.
“There’s a massive disconnect between city hall and businesses,” he said.
“Every day, we worry about how are we going to pay our employees, how are we going to retain our customers, how are we going to pay our bills, how do we keep our doors open, and the city adds to that worry once again.”