How City Council balances budgets is critical to maintaining the right investments into the core services and key projects that directly impact the lives of Calgarians. It’s my job as Mayor to lead a City Council that can respond to the needs of Calgarians now and for the future – that’s why we choose to invest in the infrastructure, systems, and ideas that will provide long-term success for Calgary.
My time as Ward 3 Councillor was an opportunity to learn about our city budget, what money we had available to grow our city, where it came from and how we were able to use it to improve the livelihoods of Calgarians. This experience, along with my passion for serving Calgary and the ways in which I wanted to see our city grow, drove my decision to run for Mayor. Being elected during the pandemic highlighted economic disparity in our city, the effects of which are still prominent as rising costs of living have reduced a sense of security among many Calgarians.
I hear your concerns, and I’m here to help.
Balancing the City’s budget requires both the maintenance of the systems and infrastructure that Calgarians rely on daily, while also taking strides towards generational investments that will contribute to our social and economic well-being. Understanding that fiscal responsibility doesn’t mean never spending our money, it means being responsible about spending on the right things.
The City of Calgary has a multitude of reserves. When a department earns more revenue than anticipated or doesn’t use their entire budget, the remaining funds may be directed into a reserve fund attached to the services provided by that department. There are rules and regulations about how and where this money can be spent, and they represent ‘one-time’ investments when drawn upon. This means this money is used once, and not added to annual budgets. Because the budgets of many of the departments in the City, like transit and road maintenance for example, are expended and earned with the ebbs and flows of ridership or changing environments, their expenses remain more flexible. Should the City and its departments generate a surplus, that money gets saved for strategic initiatives whenever Calgarians might need it.
I’ll share a good example of a surplus with you. With a warmer and relatively short winter season in 2023-24, the little snowfall we did receive meant fewer snowplows than we usually anticipate. As a result of not expending those resources as frequently, there was $8.9 million surplus dollars put into the reserve for other initiatives. In May of this year, Council decided to spend that surplus on fixing potholes.
Using money in the reserves means we can keep taxes low to provide you the services you use every day.
Just like many of us might save up money for a vacation, a new roof, or a new home, the City of Calgary has been managing its reserves for city shaping opportunities such as this. Scotia Place, Calgary’s new event centre set to open in 2027, is using the funds from the previous event centre plans, our reserves, and significant collaboration to help fund the project. Our deals, agreements, and partnerships leave the City with certainty and predictability as partners will pay a lease to the City in the amount of $17 million a year, increasing annually over 35 years.
Considering that Calgarians won’t see an increase of property taxes to fund Scotia Place, but they will have the opportunity to take pride in a world-class event centre, is demonstrating our ability to capitalize on favourable timing while investing in our future.
Unlike other orders of government, at the municipal level, cities cannot go into a deficit. This means we are careful about choosing which ventures to pursue, investing in the programs and projects that will provide the most benefit to Calgarians for generations.
I understand that many might question why the time is now to begin developing new projects. When you walk downtown, visit the libraries in your community, or choose this city as home because of the diverse opportunities, you are reaping the benefits of the innovation and decision making of those before us who invested in the infrastructure and systems we know, love, and use.
When we think about building for today and into the future, we think about contributing to a Calgary that will be loved and cared for, for generations beyond us.
Our willingness to grow as a city, whether that’s seeking new opportunities or creating more space to support our communities, is just one of the great qualities we know to be true of Calgarians. Being able to tackle issues more boldly has gained international attention and inspired collaboration between many different orders of government, organizations, and people – pushing the city forward. What we’ve managed to get done over the last couple of years proves that, together, we can do it, Calgary.