Calgary councillors wary of potential water rate increases

Calgary City Council reviews water infrastructure report, with some councillors expressing concern over possible future utility rate hikes and tax increases

Calgary councillors wary of potential water rate increases
Calgary councillors wary of potential water rate increases

Calgary City Council Reviews Bearspaw South Feeder Main Report

Calgary City Council spent Tuesday reviewing an independent report on the Bearspaw South Feeder Main failure. The discussion shifted to the potential costs of future improvements to the city’s water system for residents.

City administration presented the report’s recommendations to councillors. They outlined the next steps, including an implementation plan that will return to council in February.

Mayor Jeromy Farkas stated that the recently approved budget commits substantial funding to Calgary’s water infrastructure. He noted that any future adjustments to utility rates would consider affordability.

“In our recent budget deliberations, we allowed for $1.1 billion in investment in our water utility,” said Farkas. “That’s a good three or four times what a typical council will allow for.”

Farkas added, “What we’ve shown is that we can actually do the investment and needed services while keeping costs reasonable. Earlier in the meeting, the panel chair said that we should be targeting inflation as far as the rate increases should be.”

Some councillors expressed concern about future costs. Ward 2 Coun. Jennifer Wyness warned that the next budget cycle could lead to sharper increases in both utility rates and property taxes.

“We drained the reserves because there were councillors putting new spends before us rather than investing in the boring infrastructure,” Wyness said.

Ward 10 Coun. Andre Chabot shared similar concerns, saying he “wouldn’t be surprised” to see significant utility rate hikes.

“It comes down to the age-old argument with new councils, old councils. It comes down to managing expectations,” he said.

The meeting also addressed why the High Priority Action report, provided to the administration by the independent review panel in October, was not shared with the council immediately. Chief Operating Officer Stuart Dalgleish explained that the early delivery allowed administration to assess whether additional budget approvals might be needed.

“Delivering the High Priority Action Report at an earlier stage enabled administration to consider whether additional budget approvals would need to be sought from council to undertake the high priority action report’s recommendations,” Dalgleish said.

Ward 14 Coun. Landon Johnston had previously expressed frustration with the delay. On Tuesday, the mayor added that if the recommendations were urgent, council should have been informed immediately.

Administration is expected to return to the Executive Committee in February with a full implementation plan outlining how the independent review’s recommendations will be carried out.

Summary of Key Points

Topic Details
Meeting Date Tuesday
Report Reviewed Bearspaw South Feeder Main failure
Budget Commitment $1.1 billion for water utility
Next Steps Implementation plan in February
Concerns Raised Utility rate and property tax increases
High Priority Action Report Not shared immediately with council
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