Council passes contentious budget with 5.3% tax hike next year

Calgary city council passed the 2009-2011 budget on Thursday evening after weeks of debate and hours of going through it line by line, looking for ways to soften a property tax increase.

Calgary property owners will see a tax hike of 5.3 per cent in 2009,6.1 per cent in 2010 and 6.7 per cent in 2011 much more palatable numbers than the 9.6, 6.8 and 6.9 per centhikesproposedearlier this month.

That translates to$60 more in property taxes next year, less thanthe originally proposed$99, for the average home valued at $430,000.

The budget passed by a vote of 11-4 with Diane Colley-Urquhart, AndreChabot, Ric McIver and Joe Connelly opposing it. Their last-minute attempt to send the budget back to city staff failed.

Colley-Urquhart had been leading a charge to introduce a one-year budget with a tax hike close to the annual rate of inflation, which is around four to five per cent.But by Thursday, that offensive crumbled and council was able to pass the three-yearbudget.

Ald. Dale Hodges won support for his plan Thursdayto cut out $5 million annuallyfrom the staff overtime budget over the next three years.

In total, aldermenremoved about $20 million in expenses from a proposed $2.5-billion budget for 2009.

Theyalsoimposed a $3 dailyfee for park-and-ride lots, and a $12 monthly fee for recycling and garbage pickup. Both user fees kick in next year.

Council also passed a motion Thursday by Mayor Dave Bronconnier thatwill see the city-owned Enmaxdivert an additional $8 million, originally slated for parks, to the city's general revenues, on top of the utility's annual $35-million contribution to city coffers.

"It's a thoughtful approach to continue with the parks program that we started a number of years ago that virtually every quadrant of the city has benefited from. And as taxpayers owning an asset, there is immediate tax relief," Bronconnier said.

Garbage pickup almost dumped

For about a half an hour Wednesday night, Calgarians were facing a new year without garbage or recycling pickup.

A majority of council members, eight out of 15, voted to reject the waste and recycling department's budget Wednesday night, along with the new user fees of $8 a month for recycling and $4 a month forgarbage pick-up.

"This is a huge problem. We're going to have garbage piled up everywhere," warned Ald. Linda Fox-Mellway.

Buta half hour later,council accepted the budget after being told in a closed-door meeting that the rejection would cost more than $100 million.

The budget debate informally began on Nov. 7, when city staff proposed a $7.9-billion operating budget for 2009-11.