Calgary council calls for tax increase between 0% and 2% for 2018

Calgary city council wants to limit next year's tax increase to a maximum of two per cent, meaning city staff will have to find more than $130 million in savings or cuts as they prepare a detailed budget for approval in November.

Council voted Monday to have city staff prepare a 2018 budget for approval in November that includes a range of options with tax increases of between zero and two per cent.

"Rather than giving them two per cent, we've said go no higher than twoper cent," Mayor Naheed Nenshi said.

City manager Jeff Fielding has said the city is facing a roughly $170-million shortfall next year, and atwo-percent hike would wouldraise about $32 million in additional revenue.

The city had previously built in a 4.7-per cent tax increase for 2018 in its long-term financial plan.

Job cuts possible

Coun. Ward Sutherland said he wants a tax increase of lower than two per cent and job cuts could be part of the budget.

He said the city should consider contracting out more jobs as a way to save more money.

"We have to be competitive," he said.

"So I'm not saying let's get rid of all of the unions. I'm saying in the environment, they'd better be competitive with the free enterprise or don't expect to be here because that's not fair to Calgarians."

Calgary Transit recently laid off more than 60 LRT platform workers and plans to hire contractors instead, in a move expected to save $2.7 million peryear.

The detailed budget for 2018 won't be approved by council until November, after October's municipal election.

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