Cuts loom over tough city budget talks

Councillors aim to bridge $146M shortfall, while trying to limit property tax increase

City council is facing some tough decisions this week as it deliberates on a budget that aims to bridge what administration says is a $146-million operating shortfall.

A proposal by city staff rolls back a 4.7 per cent property tax hike approved in the original 2015-18 budget plan to zero per cent.

In budget plan adjustment documents, staff say an operating budget gap projected at $170 million has been reduced to $146 million, and that $154 million in savings have been identified.

Regardless of what council decides, homeowners can still expect to see a bump of 2.9 per cent on average on their property tax bills, after the expiry of a one-time rebate council put in place last year, which was meant to delay the effect of a property tax hike until 2018.

Coun. Ward Sutherland said he’s hoping to see any property tax increase kept to between zero and one per cent, taking into account a budget “add-on” of $14.3 million requested by Calgary police for additional officers and body-worn cameras.

“There’s going to be additional layoffs at all different levels,” said Sutherland.

“But the main focus has to be not taking away from core services, and we also need to be looking at what businesses we should be in as a city and shouldn’t be in, and contracting out.”

Reductions are proposed across all city departments, including the elimination of 156 full-time equivalent positions. City staff say the budget shortfall can be bridged through a combination of cost savings and service reductions based on “the least harm approach.”

However, areas that will see cuts include transit service, which will be reduced by 46,800 hours under the current proposal, including deleting trips and reducing frequency on 27 routes.

Coun. Gian-Carlo Carra said council gave “very specific and very difficult” direction to administration on the budget and he’s pleased with their response.

“The big question will be the addons,” he said.

“The big question will be whether council has concerns about too much cut back and what they’re willing to add on, and I definitely think the police budget’s going to pass.”

Carra added one issue he’s passionate about is ensuring that the low-income transit fare is kept.

“I’m certainly interested in going after the province for that money because it is ultimately their responsibility, but I think that we have to maintain it, because it is a shocking and soberingly successful program,” he said.

According to budget documents, in the first three months after the city introduced a sliding-scale fee structure for transit, there were almost 70,000 monthly passes sold, versus about 50,000 sold during the same period in 2016. City staff say they have identified an additional investment of $4 million to address the funding gap for the program.

Coun. Sean Chu also said he’s hoping to see a zero-per-cent property tax increase. He said he wants to hear what Calgary police have to say during the budget talks, but added that police “should lead by example.”

“Before, we had a few deputy chiefs, and for a while now they have had a superintendent that’s below the deputy chiefs,” he said.

“I think that they have to look at how they can cut on the top.”

The first day of budget deliberations is scheduled for Monday at 9:30 a.m.

I think that we have to maintain it, because it is a shocking and soberingly successful program.