Calgary Faces $50B Infrastructure Deficit

Calgary's mayor, Jeromy Farkas, has warned that the city faces a $50-billion infrastructure deficit over the next 10 years, resulting from decades of deferred decisions from all orders of government. This massive deficit will require careful management and investment in key areas such as the transportation network, water system, and recreation facilities to meet the needs of the city's growing population.

The city's population is expected to reach two million people, putting a strain on existing infrastructure. Recent examples of the city's infrastructure needs include the rupture of the Bearspaw feeder main and a fast-tracked project to replace a failing water line in the city's northwest. These incidents highlight the importance of investing in the city's infrastructure to prevent future disruptions and ensure the city can support its growing population.

To address the infrastructure deficit, the city must make tough budget decisions. Confidential preliminary budget documents show that property tax revenue would need to increase by 20.2 per cent in 2027 to fund all the funding requests in front of council. However, city administration has begun whittling down funding requests to prepare a preliminary budget scenario with a potential 15 per cent property tax increase.

Mayor Farkas has emphasized the need for 'fiscal discipline' in the city's budget, stating that it does not mean refusing to invest, but rather knowing the difference between what the city needs and what it wants. The city's budget will be discussed in a closed-door session later this month, where council will need to make difficult decisions to balance the city's infrastructure needs with the financial constraints.

## Why it matters The city's infrastructure deficit has significant implications for the city's future growth and development. With a growing population and increasing demands on infrastructure, the city must invest in key areas to prevent disruptions and ensure the city remains a desirable place to live and work. The city's budget decisions will have a direct impact on residents, who may face increased property taxes to fund the necessary infrastructure investments. As the city navigates these challenges, Mayor Farkas' emphasis on 'fiscal discipline' will be crucial in ensuring that the city makes responsible and sustainable budget decisions.