Calgary Chamber 2025 mid-cycle adjustment submission to City Council

Calgary City Council

800 MacLeod Trail SE,
Calgary, Alberta, T2P 2M5

Sent via electronic mail

RE: Calgary Chamber 2025 mid-cycle adjustment submission to City Council

Mayor and Council,

On behalf of the Calgary Chamber of Commerce and our member businesses, I am writing to provide you with our formal submission regarding the 2023-2026 Service Plans and Budgets mid-cycle adjustments.

The City of Calgary’s 2023-2026 Service Plans and Budgets have, in many ways, proven successful in fostering economic growth across all sectors and sizes of business. With noticeable improvements and key investments moving forward across the city – including the recent opening of the new BMO center, the rise in LRT ridership and a moderate improvement in perceptions of downtown safety – it’s apparent the City’s budgetary planning is yielding positive results. Moreover, City Council’s commitment to shifting the non-residential to residential tax split by one percent annually between 2024 and 2027 continues to support businesses by providing much-needed cost pressure relief.

Moreover, while data released as part of the Q3 2024 Canadian Survey on Business Conditions shows business optimism Calgary has stabilized, specific challenges remain. The cost of inputs continues to rise, and while inflation may be cooling, businesses remain concerned about the future. Confidence in our nation’s supply chains has plummeted, restricting access to essential inputs. Persistent labour shortages continue to limit business growth and dissuade investment in across sectors – for example, the postal strike that began November 15 will disproportionately affect smaller businesses. Stemming from these challenges, 43 per cent of Calgary businesses anticipate an increase in their operating expenses in the next quarter, and at the same time 28 per cent expect a decrease in profitability. While 78 per cent of Calgary businesses are optimistic about the future, many continue to struggle; small businesses (1 to 4 employees) are 11 per cent less optimistic than larger businesses across Calgary. Small businesses are the backbone of our economy – making up more than 95 per cent of businesses in the Calgary area, and there are specific targeted measures the City can take to support their continued success across Calgary.

For this mid-cycle adjustment, we are calling on the City to prioritize fiscal responsibility and red tape reduction to support businesses and Calgarians more broadly. We also call on the City to continue investing in infrastructure to support our growing population, including water and transit, and develop contingency plans for future emergency situations. This will provide the City with predictability in revenue, as well as support businesses by stabilizing municipal taxes and eliminating unnecessary costs.

Through engagement with our diverse membership, representing more than 400,000 employees across sectors and sizes of firm, we have identified priority amendments for the Service Plans and Budgets that would support businesses through the upcoming year. Based on this input, we encourage City Council and City Administration to implement the recommendations included below.

Thank you in advance for your consideration. We look forward to working with you and your colleagues to accelerate a sustainable and prosperous future for all Albertans.

Sincerely,

Deborah Yedlin 
President & CEO  
Calgary Chamber of Commerce