City of Calgary
Re: Water Utility 2027-2030 Rates, Cost Recovery and Service Plan, EC2026-0905
Dear Mayor and Members of Council,
On behalf of Calgary Chamber of Commerce members, we are calling on City Council to reject the current proposed water utility rate increases being considered on October 27. While we recognize the urgent need to invest in Calgary’s water infrastructure, the proposed annual increases of 19.9 per cent for drinking water, 15.2 per cent for wastewater and 5.8 per cent for stormwater over the next four years are excessive and would place an unreasonable financial burden on Calgary’s business community.
Under the proposed rate structure, a typical small restaurant could see its water bill increase by approximately 86 per cent by 2030, while some industrial users could face increases approaching 95 per cent. This would mean an industrial business currently paying $41,000 per month would be paying nearly $80,000 per month by 2030 – an annualized increase of nearly half a million dollars. These increases would significantly undermine Calgary’s competitiveness relative to other major Canadian cities, threatening our ability to attract and retain businesses, investment and jobs. For water-intensive industries, including manufacturing, food processing and hospitality, water is an essential operating input. Businesses cannot simply reduce consumption to offset these costs without compromising operations, regulatory requirements or service delivery.
Calgary’s businesses – 95 per cent of which are small and medium-sized enterprises which lack the pricing power to pass on the added costs – understand the importance of investing in reliable infrastructure. Recent water system failures have demonstrated the consequences of deferred maintenance and the need to build a more resilient system. However, the solution cannot simply be to pass the cost of these investments onto businesses and residents through unprecedented rate increases. Council must demonstrate the same financial discipline expected of the business community by reviewing spending priorities, identifying operational efficiencies and pursuing alternative sources of funding, including greater collaboration with provincial governments, exploring new federal funding options and issuing infrastructure bonds where appropriate. Calgary cannot afford to address its infrastructure gap by making the city less competitive for businesses.
The Calgary Chamber is urging Council to reconsider both the magnitude and pace of these increases, undertake a comprehensive assessment of their economic impacts and meaningfully engage with businesses before moving forward. Council should direct Administration to explore alternative funding models and a more gradual approach to cost recovery that protects Calgary’s competitiveness while delivering necessary infrastructure investments.
Calgary is competing with other major cities to attract investment, support businesses and create jobs. At a time when businesses are already facing rising property taxes, labour costs and economic uncertainty, imposing utility increases of this magnitude sends the wrong message to current and prospective investors. We urge Council to reject the proposed increases and pursue a more balanced approach that strengthens our infrastructure without compromising the economic prosperity it is intended to support.
For the above reasons, the Calgary Chamber of Commerce strongly suggests the currently proposed rates by rejected, and that administration be directed to explore alternative funding models and a more gradual approach to cost recovery. To do otherwise will significantly harm our business community – and Calgary’s economy.
Sincerely,
Deborah Yedlin
President & CEO
Calgary Chamber of Commerce
ABOUT THE CALGARY CHAMBER OF COMMERCE
The Calgary Chamber exists to help businesses thrive. As the convenor and catalyst for a vibrant, inclusive, and prosperous business community, the Chamber works to build strength and resilience among its members and position Calgary as a magnet for talent, diversification, and opportunity. As an independent, non-profit, non-partisan organization, we build on our 131-year history to serve and advocate for businesses of all sizes, in all sectors, and across the city.
