Budget Week: What you Need to Know & Town Hall Recap

Budget Week is here at the City of Calgary. Starting November 24, City Council begins reviewing the 2026 budget adjustments - the final year of the four-year budget cycle set by the previous Council. Unlike a full budget reset, these adjustments are smaller and strategic. They strengthen areas that need extra support while staying true to the long-term plan approved in 2022. The next full four-year budget will be set in November 2026.

Why These Adjustments Matter

The proposed adjustments reflect what Calgarians have told us matters most: housing, public safety, transit, and infrastructure. In total, the 2026 adjustments propose just under $300 million in additional operating and capital investment for the coming year.

Here are some key highlights:

• Housing: ~$86 million to expand affordable housing, including a 260-unit project in Southview and continued office-to-residential conversion work downtown.

• Public Safety: ~$66 million for downtown safety initiatives, 911 operations, and strengthening Calgary Police Service resources.

• Transit: $59 million to improve service frequency, enhance safety, and expand fare affordability programs.

• Infrastructure: $87.7 million for roads, streetlights, parks, facilities, and the Plus 15 network, with major long-term investments continuing in water infrastructure and the Green Line.

To support these priorities, the previously approved 3.6% tax revenue increase remains in place. For the typical Calgary household, this works out to roughly $13 per month. On the utility side, residents can expect an average increase of 3.9% for water, wastewater, and stormwater services.

(Click to enlarge the Summary Adjustments and Summary Operating and Capital Revenue for the 2026 Budget.)

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Thank You & Next Steps

A heartfelt thank you to everyone who joined our Ward 3 Budget Town Hall on November 20 at Vivo. We had an engaged audience that asked thoughtful questions and shared meaningful ideas about our communities and their needs. Your input matters, and it continues to shape our work.

If you were unable to attend the session in person, please feel free to view the slide show presented (below) or view the Q&A.

2025 Budget Town Hall Powerpoint.pptx

Download PPTX • 4.10MB

Members of the public are welcome to take part in Budget Week, either online or in person. You are welcome to speak at council or submit written comments on the proposed budget adjustments for the official public record. Details on how, including links to the video livestream and instructions for sharing your comments, can be found HERE.

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Your Questions Answered

A number of questions were submitted both online and at the Town Hall. The full list of questions and responses is available below.

Is there any possibility that the City could lose federal funding for housing initiatives as a result of reversing rezoning, and if so is there any contingency plans in the budget to compensate?

This is a possibility, but we don’t know yet. One of Administration’s key tasks will be to assess what the financial impact could be if federal funding were reduced or withdrawn. At this time, there is no allocation in the 2026 budget to cover a potential funding loss. As more information becomes available from the federal government and Administration, we will have a clearer understanding of both the risk and any required contingency planning moving forward.

Much of the previous council’s work, like the blanket rezoning and anti-racism committee, took significant time and public resources. How will you avoid wasting these efforts if council is working to actions undo them?

This past work will factor into future considerations. The reality, though, is that in a democracy public opinion and community priorities can shift over time. Council’s role is to respond to those shifts while still learning from the work that has already been done. Ongoing engagement and hearing directly from residents as these issues come forward again will help us preserve what people value, refine what isn’t working as well as intended, and ensure that previous efforts are not lost but inform  our decisions moving forward.

How will you ensure property taxes don’t increase unfairly? How will this council ensure assessments are fair and not inflated to pad budgets?

Part of the complexity of our property tax system is that assessments are based on market values from a specific point in time — usually six months before tax bills are issued. Because market conditions can shift quickly, especially in a city that experiences regular periods of rapid growth and cooling, assessed values don’t always match what residents see in the current market. This timing gap can leave some people feeling their assessment doesn’t fully reflect present-day conditions.

The assessment process is designed to reflect market realities as accurately as possible, and there are safeguards in place to prevent assessments from being inflated to generate extra revenue. If a resident feels their assessment does not fairly represent the value of their property, the appeals process is available to them. Our office is always happy to help connect residents with the appropriate appeals resources and provide support if and when that time comes.

What is the best way to advocate for projects and infrastructure Ward 3 needs? (IE: the Aurora park green space in harvest hills, or a lighted crosswalk/traffic calming.)

Joining your community association is one of the most effective ways to advocate for projects and infrastructure improvements. Community associations have a strong understanding of local needs, experience working with different levels of government, and a collective voice that can help move priorities forward - and they’re often under-resourced, so extra volunteers make a real difference.

Beyond that, attending community engagement sessions, calling 311 to report issues that need extra support (IE: traffic calming,) and writing to the Ward 3 office are all excellent ways to raise concerns and help bring attention to projects that matter to your neighbourhood.

How will the proposed budget improve the infrastructure in Ward 3, like more community/third spaces?

Because these adjustments build on the four-year budget approved by the previous Council in 2022, we can expect targeted updates rather than a full budget overhaul. The next full four-year budget process will take place in November 2026. That’s when Council will be able to take a deeper look at community needs and focus more fully on the projects and investments residents want to see prioritized.

In terms of budget adjustments this year, one if the items we’re advocating for is a feasibility study to explore building a new community space in Ward 3. We know that accessible gathering spaces are limited in our area, and this study would help identify options to address that gap. We’re also collaborating with Councillors in Wards 4 and 7 to improve transit service along the central corridor, with a focus on increasing capacity, frequency, and implementing a full BRT service. Additionally, we are working to fund several pedestrian safety initiatives, including traffic calming measures and enhanced crosswalks.

Last year, we saw taxes for condo increase at a higher rate than for single-family homes. Condos are responsible for covering costs like repaving and waste services that are funded through municipal taxes in residential areas. How is this fair?

Many condo owners experienced a higher-than-average tax increase last year because condo and multi-family homes rose in market value more quickly than single-family homes. Under the current assessment system, a larger increase in assessed value results in a higher tax change. The City is required to use this provincially mandated market-value model. Any adjustments to how different housing types are assessed would need to be made by the Province.

How much is the Province increasing our property taxes by?

At this point, we don’t know. The Province sets the education property tax portion of our bill each year, and the City is required to collect it on their behalf. The provincial government typically provides this information in the spring - around March or April - after the release of the provincial budget.

How do we lower taxes with minimal service impact? Can we budget without increasing property taxes?

In the short term, we may be able to pull money from reserves or one-time surpluses in order to maintain (or not increase) taxes and still maintain services. Longer term, it’s important we consider how we build our city and how far services like roads, waste, and water must travel. We must ensure developers are partnering closely with the City to build complete communities, so we do not end up with infrastructure deficits that end up costing more down the road – the situation we are in now.

What can the City do to help with tenant protections, including rent control?

Rent control falls solely under Provincial jurisdiction. However, the City is committed to utilizing as many resources as possible within its domain to address the housing crisis. While we cannot make guarantees related to market housing, we are working with multiple not-for-profit housing providers to build units that will remain well below market rates. (see more HERE)

Can the budget improve direct transit access to universities?

This budget is only making small adjustments to the previously approved four-year budget. However, this (mostly) newly elected Council will set their priorities and a new four-year budget November 2026. One strategy developed by the City that addresses a few components of university-related transit issues is Route Ahead, specifically the MAX Yellow. (see HERE) Route Ahead is the long-term strategic plan for the future of transit in Calgary. Cllr Yule ran a very transit-forward campaign and fully intends to support adequate funding to advance the Route Ahead strategy.

How much will property taxes go up by?

The previous City Council voted to cap the potential increase on taxes for this year at 3.6%. A 3.6% tax increase would result in an additional $18/month for the average single-family home. The current Council is working hard to lower this increase, so it is unlikely we will see more than a 3.6% increase this year on the City portion of property tax. That said, about 37% of our property tax bill is collected on behalf of the Province. Should they increase their provincial tax amount, we will see that reflected on our bill also. 

What updates in the budget will support affordability for Calgarians, and how will these changes impact residents of Ward 3?

Broadly speaking, Council is working to decrease the previously proposed tax increase of 3.6%. This will directly come with a lower property tax bill than previously thought. The proposed budget adjustments also fund the low-income transit pass, ensuring thousands of Calgarians can access transit at a rate that works for their personal budgets. Non-market Affordable Housing units are also proposed in the budget, which directly benefits our most vulnerable who need to acquire housing.

What are the 2026 budget adjustments, and what is driving the changes compared to the original four-year plan?

The 2026 budget adjustments focus on areas that were approved in the original four-year plan three years ago but now require additional investment to meet current needs. Overall, these adjustments represent a 3.6% increase, which amounts to roughly $88 million. These targeted updates ensure that ongoing projects and services have the resources they need while building on the priorities set by Calgarians.

How is the City addressing rising cost-of-living pressures - including property taxes, utilities, and fees - and ensuring that property assessments accurately reflect fair market value, especially as home values continue to increase year over year? Some residents expressed concern that the assessed value was higher than what the current market value of their property was showing.

Calgary has been through a period of rapid growth, resulting in increases in property values across the city.  While some parts of the market are now beginning to cool, these shifts aren’t always reflected immediately in assessment notices. Assessments are calculated using market data from roughly six months before tax bills are issued, which means changes in the market during that gap can create a mismatch between assessed value and what residents see today.

If homeowners feel their assessment doesn’t accurately reflect the value of their property, there is an appeals process available to request a review. That said, it does place the responsibility on residents to initiate that challenge.

There have also been suggestions to revisit the market-value assessment system, as it can disproportionately affect more attainable homes such as condos and multi-family units. However, the market-value assessment framework is set by the Province, not the City, so any changes to that system would require provincial action.

With more housing being built and added to the market, shouldn’t the tax base broaden and help reduce the pressure on individual taxpayers?

While new housing does expand the tax base, it also increases the demand for core infrastructure in newly developed areas - things like roads, utilities, emergency services, and community amenities. These investments are significant and often outpace the revenue generated in the early years of new community’s.

This is why it’s important to continue supporting development in established neighbourhoods and investing in downtown revitalization. Growth in already-serviced areas helps balance long-term costs, strengthens the overall tax base, and reduces pressure on individual taxpayers over time.

What are the software licensing costs (24.6M)

The City relies on a wide range of software to support day-to-day operations, and licensing costs have increased significantly over the past four years. The $24.6M reflects those rising fees across our systems and services. For this budget cycle, one-time dollars are being used to help cover these costs.

How is the ongoing tax shift from business to residential properties being addressed, and what steps is the City taking to rebalance the tax base?

The tax shift between business and residential properties is an ongoing conversation, and Council continues to look at how this balance will evolve over time. A key part of this work is the Downtown Office Conversion Program, which turns vacant commercial spaces into residential units that contribute positively to the tax base. As more conversions come online, we expect a healthier, more diversified tax base in the downtown that helps stabilize pressures on both businesses and residents.

With plans for future non-market housing sites, how can the community ensure that greenspace is preserved?

Community members are encouraged to work closely with their local community associations. These associations have a strong voice when it comes to development and can help amplify the concerns and priorities of residents, including the desire to maintain and enhance greenspace. Engaging early and consistently through your community association is one of the most effective ways to influence how new housing projects are designed and integrated into the neighbourhood.

$60M of these budget adjustments are flagged for new provincial expenditures (including covering lost revenue from the province’s removal of photo radar fines and added costs for low-income transit passes and day spaces for vulnerable Calgarians). Would the property tax increase be lower if the City didn’t have to cover these costs?

Not necessarily. While those provincial expenditures do add to the budget, any funds freed up would likely be redirected to other underfunded projects or priorities. The goal of the adjustments is to ensure that essential services and initiatives have the resources they need, so the impact on the tax rate may not change significantly even if provincial costs were not included.

We are seeing an increase to water rates, but Calgary experiences a 22% water loss rate. How is the City addressing system inefficiencies?

Water rates help fund investments that build redundancy and reliability into the system, allowing the City to begin addressing longstanding issues such as water loss. For example, projects like the North Feeder Main are key steps in improving system capacity and reducing inefficiencies. Looking ahead, the next four-year budget will include additional investments in infrastructure to continue addressing these challenges and support a more sustainable and efficient water system.

Calgary receives revenue from servicing Okotoks with water. Where does the revenue go and how is it used?

Water revenue is kept separate and managed within the City’s utility reserve. The goal is to maintain utility revenue as cleanly as possible, meaning that funds collected for water services are reinvested back into the utility system rather than being used for unrelated City expenses.

The budget allocates roughly $86M toward affordable housing - how does the City plan to recoup this investment?

Investing in affordable housing can generate savings over time by reducing significant costs associated with homelessness and precarious housing. When people have stable housing, there are fewer demands on emergency services, healthcare, and law enforcement, which helps offset the initial investment. Additionally, a stronger tax base over time supports a more sustainable return on these kinds of community-focused investments.

How is the City addressing situations where developers aren’t fulfilling their commitments, and what can be done to encourage stronger investment in new communities?

In some cases, developers have sold a “bag of goods” at the time of purchase that has never been fully delivered to residents. Moving forward, Cllr Yule will advocate for the City to formally tie infrastructure and amenity commitments directly to development approvals, rather than making promises that could later be reduced or removed. Additionally, future budgets will need to include increased investment in critical community services such as emergency response, transit, recreation, and parks, ensuring that new neighbourhoods are well-supported and livable for all residents from the very start.

Why is funding for the low-income transit pass being provided as a one-time allocation rather than built into the City’s base budget to be funded year-over-year?

The low-income transit pass is funded on a one-time basis because if it were formally added to the City’s base budget, it would create a permanent financial responsibility for the City. The intent is for the Province to provide sustainable, ongoing funding for this program, ensuring that the cost is shared appropriately and does not permanently fall on municipal taxpayers.

Should we assume the Green Line is not coming north in the near future?

Currently, Phase One of the Green Line is focused on the southeast portion of the city - from Shepard to the new arena. The plan for the northern extension still needs to be finalized. While the northern expansion is expected eventually, we don’t anticipate it happening in the near term unless there is significant investment and support from other levels of government. Councillor Yule’s focus will be on advocating for more investment in BRT service for north-central Calgary while we await future Green Line development.

What can residents do to advocate for the Green Line’s northern extension, and why has there been reluctance to extend it north?

The main challenges for extending the Green Line north is the high costs of construction - especially crossing the river. Residents can advocate for the northern extension by engaging with the Province, emphasizing the community’s support and the benefits of expanded transit. Councillor Yule and the Ward 3 office will continue to push for provincial investment and highlight the importance of this connection for north Calgary.

Will the Airport Connector project still move forward, and how might it impact Ward 3?

Yes, the Airport Connector project is still in the works. There may be opportunities to optimize connectivity to Ward 3 as the project develops. The Province is also very interested in regional rail connections, and a master plan is expected soon, which could provide additional benefits and linkages for the area.

Why can’t the original 2022–2026 four-year budget be larger so fewer adjustments are needed now?

When the original four-year budget was developed, Calgary’s growth, market conditions, and citizen priorities were very different. The city has grown at a much faster rate than anticipated, and we now face inflation, supply chain challenges, and other cost pressures. Calgary’s expansive road and infrastructure network also requires ongoing investment that is difficult to fully predict four years in advance. These adjustments allow the budget to flex and respond to current needs while continuing to reflect the priorities of residents. Similar adjustments have been made in past cycles to ensure resources are allocated where they are most needed.

Did lessons from COVID-19 influence how the 2022 budget was developed?

Yes, however, at the time the 2022 budget was created, we didn’t fully understand the long-term impacts of COVID-19. Over the following two years, Calgary experienced rapid population growth, roughly a population the size of Kelowna has moved here - which brought significant infrastructure demands. Combined with inflation, rising costs, and other economic pressures, these factors have required adjustments to ensure the budget continues to meet the city’s evolving needs.

Are there projects in this budget in Ward 3 that residents can look forward to?

Yes! We’re excited about several initiatives currently underway and being planning. This includes work in collaboration with Wards 4 and 7 to improve transit along the central corridor and the 144 Avenue Functional Planning Study, which is currently gathering feedback to guide future transit development. We’re also continuing work to create a regional park along Nose Creek, enhancing greenspace and recreational opportunities for the community. And focusing on advocacy for pedestrian and road safety improvements throughout Ward 3. Most importantly, we want to hear from residents about community needs. Your input helps guide which projects and improvements are prioritized in Ward 3. There will be lots of opportunities to share your ideas and vision for the Ward as we prepare for the next four-year budget cycle in November 2026. Stay tuned.