Calgary 2014 budget could mean $95 average tax hike

If Calgary city council votes to approve adjustments to the 2014 budget, it will mean the average household will pay nearly $95 more in property taxes next year.

City administration released the budget adjustments late Thursday morning. Administrators say the plan, which is based on a 6.1 per cent property tax increase, would allow the the city tocontinue thecurrent levelof services.

The budget will be debated by councilstarting Nov. 25.

More reports, detailing exactly what which user fees and utility rates will go up, will be released within a week or two, saidthe city'schief financial officer Eric Sawyer.

Citizens can expect thelargest increases to be for utility rates, said Sawyer. In last year's budget documents, wastewater fees, for both flat and metered rates, were projected to go up by 13.5 per cent in 2014.The CFOsaid the 2014 rates will increase beyond that. Stormwater drainage rates, drafted in 2013 to go up by 4.9 per cent, andflat and metered water rates, projected to go up by 7.4 per cent, will also see increases,said Sawyer.

Council reaction

Ward 10 Coun. Andre Chabotsaid Thursdayhe will not support a six per cent increase.

"I think we could probably get it down to at least three [per cent], but that's using that $52 million anything lower than that will be a challenge."

Chabot said that a 2.1 per cent increase could be possible, but that would mean reducing council's, and citizens', expectations.

Chabot said anything lower than a three per cent increase wouldmean scaling back proposed service levels that council has discussed over the last year such as adding more hours of transit service some of which he thinks are justified.

The proposed55,000 hours of additional transit servicewill be paid by higher than expected fare box revenues, according to budget documents.

Newly-elected Ward 1 Coun. Ward Sutherland says hell support what he campaigned on a 2.2 per cent increase that is in line with inflation.

I think theres room to move without reducing any of the frontline services, said Sutherland.

The property tax increase for 2013 was 5.5 per cent.

Prior to the budget's release, Mayor Naheed Nenshi expressed optimism the tax increase can be whittled below six per cent. He was out of town Thursday but his office issued a statement.

"This draft budget proposal is based on the direction of the previous council and will form the basis for our budgetdiscussionlater this month," Nenshisaid in a statementafter thebudget was released Thursday.

"As I have done in previous years, I will continue to search for more efficiencies in thebudget. I look forward to discussing the proposed budget and a few of my ownideas with Calgarians and council in the coming weeks.

The budget