Raising property taxes through a new levy is one option on the table for city councillors as it considers how to narrow the infrastructure funding gap Calgary faces.

An infrastructure renewal levy, to create dedicated and transparent funding for local infrastructure needs, is one of several options city administration is suggesting in a new report. The report covers how the city can tackle its infrastructure funding gap, which has become a hot-button issue for council since last winter’s water main break.

Ward 6 Coun. John Pantazopoulos said he likes the idea, after hearing from Calgarians that they can accept tax hikes if council is accountable in directly showing how it’s using that money.

“Another dollar to make sure our roads work, another dollar to make sure that our parks work — [Calgarians] can accept that. But there has to be clear outcomes,” said Pantazopoulos.

Administration’s report did not tie a specific dollar figure to its proposed levy.

Earlier this year, a city report found at least $49 billion in capital spending is needed in the next decade on Calgary’s aging infrastructure. City administration cautioned that no single tool will be enough to address the infrastructure gap.

Alternatives officials suggested include increasing the current portion of property taxes dedicated to infrastructure, pursuing more external funding from other levels of government or outside partnership, and selling municipal assets.

The report also suggests council could consider using tax-supported debt to spur infrastructure renewal while spreading its cost across future repayments funded by property taxes, or redirecting reserve balances to fund immediate infrastructure needs.

‘No magic bullet’

Ward 4 Coun. DJ Kelly said Calgarians should be worried about the size of the infrastructure gap, and argued it’s partly due to underfunding from past city councils.

“You can see in your neighbourhood broken sidewalks, broken playgrounds. These are the kinds of things that take maintenance in order to keep up with them,” said Kelly on CBC Radio’s Calgary Eyeopener on Monday.

“We need to take a look at all the options that are available to us in order to be able to close that gap a lot quicker than we have been.”

LISTEN | Calgary councillor on how city can tackle infrastructure funding gap:

Kelly said downloaded costs from other levels of government have only made infrastructure funding more difficult, and that council is advocating to the province for increased support.

“There’s no magic bullet to this. At some point, somebody needs to pull out their pocketbook,” said Kelly.

“I think for the City of Calgary, we’re at that point right now.”

When looking at the city’s infrastructure gap, Kelly and Pantazopoulos both said more money is needed for Calgary’s water system, roads, bridges, to buy more buses to improve transit reliability, and to better fund community playgrounds. Many are at risk of closing in the next decade.

Kelly said council is working on a 10-year capital plan to assess what the city needs to prioritize.

Long-term funding needed in budget

When preparing the city’s next four-year budget this fall, Pantazopoulos said council will need to ensure it dedicates continued investment to city infrastructure, especially due to the city’s rapid population growth.

“We cannot have a city that approaches two million people where our infrastructure is failing,” said Pantazopoulos.

Evan Spencer, the former city councillor for Ward 12, said the city’s infrastructure gap is due to a number of factors, including how difficult it is for councillors to balance long-term budget planning against short-term political cycles, especially as city council sees more turnover in recent elections.

Calgary’s current council is saying the right things about local infrastructure and meeting the political moment, Spencer said, giving them more political capital to take action.

But ultimately, he argued, what will matter is how much long-term funding is put toward infrastructure in this fall’s budget.

“If Calgarians don’t see a massive increase in infrastructure funding in this next four-year budget — and not one-time funding, but baked-in, massive increases in infrastructure funding year over year — we are just passing the buck onto future generations,” said Spencer.

“This should have happened a long time ago, but we have to pay for it at some point.”