Council cuts climate funding, boosts transit spending as budget talks continue

Calgary's prolonged budget talks turned to climate funding and transit Tuesday, with money getting pulled back from one and the other set to get a boost.

Calgary councillors are reducing spending on climate incentives and education programs while also putting millions of dollars more into transit as it carves out next year’s city budget.

Despite going through seven days of presentations, questions and amendments, councillors have yet to arrive at a final budget decision.

Debate is likely to continue into Wednesday afternoon.

Coming into last week, the proposed property tax increase for 2026 was 3.6 per cent combined, with single-family homes set to see a 5.8 per cent hike.

However, decisions this week have so far brought the expected property tax increase next year to around 1.3 per cent.

Many more amendments are expected to be tabled, and next year’s property tax rate will continue to be adjusted before a final decision later this week.

“I’m very happy if we can keep the overall tax increase below inflation. I’d like to see it below two per cent,” said Ward 4 Coun. DJ Kelly.

On Tuesday morning, councillors narrowly voted in favour of reducing the city climate and environment department’s operating budget by $9 million next year, down to $29 million.

“It was made clear to me that funding went toward small educational initiatives. And what we just heard in there is it’s not going to affect anything to do with flood mitigation, pollinators, wildlife (or) anything of that sort,” said Ward 1 Coun. Kim Tyers, who put forth the motion.

Administration said the $9 million was needed to advance education and incentive programs promoting energy reduction.

“We do need to keep in mind our responsibilities when it comes to legal requirements and regulatory requirements,” Tyers said when asked why more wasn’t cut from the climate department.

Mayor Jeromy Farkas, who voted against making the cuts, said he was not in favour because the city and households need to take climate seriously in order to find efficiencies and savings.

“My support for these programs is ultimately grounded in the fact that it’s measures like these that make life more affordable for Calgarians, especially lower-income Calgarians who rely on these types of services,” he said.

A day after councillors approved an increase in transit fares for 2026, members voted in favour of increasing the amount of funding going toward the operation of trains and buses.

A $6-million boost for the primary transit network and Calgary Transit overall will see more buses on the roads next year, although specific routes were not identified during debate.

“We are as efficient as we possibly can be once this budget is implemented by making sure all of our buses are in use at the maximum amount of time they can possibly be,” said Kelly.

Also on Tuesday, council unanimously supported putting $3 million more toward playgrounds and parks and committed to finance planning work for an emergency response station in Glacier Park.