In October 2022, Council received recommendations from Administration related to a number of topics raised by the Financial Task Force, including reports on:
These reports highlight that Calgary’s budget-based approach to setting tax rates, used in most municipalities in Canada, remains the gold standard for transparency and tax stability. In addition, Council’s ability to adjust the distribution of property tax between residential and non-residential classes provides the most effective and efficient means to create tax stability, eliminating the need for legislative changes or costly investments. Further, Council’s direction to establish a countercyclical policy will enable The City to respond to economic highs and lows with timely tax policy and reserves-related solutions and actions.
Assessment smoothing and non-residential subclasses were considered as potential policy tools to address tax volatility. However, Administration’s investigations found that neither solution would have addressed Calgary’s unique context and would add significant complexity to the assessment and tax system, reducing transparency for Calgarians. These tools, where enabled by legislation, may be useful to address other problems that may arise in the future.
Council’s approval of these reports and recommendations supports Calgary’s strong financial management practices, proven capacity and ability to respond to external risks.