Survey reveals growing burden on taxpayers

City urged to get handle on spending

By any measure, Calgary taxpayers have endured an increasingly painful pinch over the past few years, says a Canadian tax watchdog.

As Calgary councillors this week comb through the city’s balance sheet in hopes of keeping property tax rates at an even keel over the course of the next year, an annual survey compiled by city bureaucrats shows taxpayers have seen a steady drumbeat of hikes over the last half-dozen years, which now sees the average local homeowner levied among the highest in Canada.

Colin Craig with the Canadian Taxpayers Federation said the power rests with 15 members of council to curb the growing burden on taxpayers by making a few tough decisions of their own.

“Our concern, especially right now, is we’re seeing property taxes continue to go up while so many businesses and families are struggling,” Craig said. “The fundamental problem is council needs to get its spending under control.”

According to the city documents, between 2011 and 2016 the average property tax for a Calgary dwelling has jumped by $685, or about $114 every year. During that same period, the total property tax levy per Calgarian has gone from $1,529 six years ago to $1,967 last year.

In both categories, Calgary ranks among the most taxed of the communities surveyed, surpassed by only Toronto and Grande Prairie in terms of property taxes for the average household, while only taxpayers in those two cities plus Vancouver and Victoria shelled out more per person.

On the utilities side of the ledger, taxpayers last year had to dig up an extra $156 per year compared to what they were paying in 2011. When property tax and utility increases for the average Calgary house are combined, Calgary ratepayers saw their annual contribution to the city soar from $4,739 in 2011, to $5,589 in 2016, an $850 increase.

Craig said unlike private corporations, which have had to make painful decisions as a result of Alberta’s economic downturn, municipalities all too often avoid such calls, forcing taxpayers to dig a little deeper so they don’t have to.

“There seems to be no limit on what they’ll spend money on,” said Craig, invoking the embarrassing summer unveiling of the $500,000 Bowfort Towers public artwork near Canada Olympic Park, which saw council temporarily shelve its art program after public outcry.

“It’s a big problem at the municipal level and there’s also a big problem when you look at their willingness to prioritize spending.”

In its initial 2018 balance sheet, city bureaucrats looked to tame a $170-million operating budget gap, presenting a host of personnel inefficiencies and service cuts to roll back what was initially slated to be a 4.7-per-cent tax hike.

Craig noted that if council were to carve a mere three per cent from its nearly $2-billion personnel budget, that gap would easily be covered.

While council is looking to keep next year’s property tax increase between zero to one per cent, regardless of what council decides, the average homeowners will see their taxes rise by 2.9 per cent next year on top of any additional increases.

Our concern ... is we’re seeing property taxes continue to go up while so many businesses and families are struggling.