Calgary's debt to more than double to $10 billion by 2030 under draft budget

Calgary's proposed four-year budget for 2027–2030, released on November 10, would lift the city's outstanding debt from about $3.7 billion this year to more than $10 billion by 2030 — 80 per cent of the limit set by council, up from about 40 per cent today. The city says the borrowing is needed to fund the largest capital investment program in its history.

According to city documents, net debt per resident would rise from $2,395 in 2026 to $5,943 by 2030. The four-year capital plan totals $21 billion, including $13 billion in new infrastructure, and the 2027 operating budget is $6 billion. Chief Financial Officer Les Tochor said the capital program is two-and-a-half times the size of the previous four-year cycle.

Four years of tax increases; typical home to pay about $53 more a month

To pay for the plan, the budget proposes raising municipal property tax revenue from existing properties by 15 per cent in 2027, followed by 10 per cent in 2028, 7.7 per cent in 2029 and six per cent in 2030. The city estimates a typical single-family home would pay about $37 more a month in property tax and $16 more a month for water, waste and recycling in 2027 — about $53 combined. Residential water rates would rise 74 per cent over four years, and business rates 86 per cent.

The city says servicing the new debt would take just under two per cent of property tax revenue by 2030, or about $50 million. Under the city's debt policy, total debt must not exceed 1.6 times city revenue, and debt servicing must not exceed 0.28 times revenue. The city expects to keep its AA+ credit rating.

$49-billion infrastructure gap; mayor calls it a starting point

The city says Calgary faces a $49-billion infrastructure gap, with the budget focused on water infrastructure, policing and transit. Investment in the Calgary Police Service would rise by $123.3 million by 2030. Mayor Jeromy Farkas called the budget a starting point and said he would challenge its assumptions; council is expected to trim the increases during deliberations.

Council will begin hearing from Calgarians and debating the budget on November 23, with a final vote in December. The city stresses the budget is only a proposal and the numbers may still change.

(File photo: downtown Calgary at dusk. Image: City of Calgary)