Summary#

Calgary City Council approved a pilot zero-based review program. It directed City staff to review three City business units, set aside $1 million for the pilot in 2026, consider further funding in the 2027–2030 budget process, and report phase 2 findings by Q3 2027. The stated goal is to assess possible efficiencies and cost savings.

• The three business units have not yet been named; City staff said they expected to finalize the selection in Q3 2026.
• City staff estimate the pilot will cost $4 million in total from 2026 to 2028. Council allocated $1 million now and directed staff to consider funding the rest in a future budget process.
• Council did not approve full implementation. City staff estimate that a full program would cost about $4.5 million a year once fully running, and would review all 35 City business units over about 10 years.
• The motion passed 13 to 2. Councillors Atkinson and Schmidt voted against.

What it means for you#

• Residents and taxpayers: The decision funds a pilot, not specific service cuts or a citywide review. City staff describe the goal as finding efficiencies while maintaining baseline service levels, but their definition of cost savings can include reducing a business unit’s output, such as ending an under-used program.
• City staff and business units: Three units will be reviewed. The decision does not name them or set rules for how the review will assess particular services.
• Taxpayers: The decision uses $1 million from the Fiscal Stability Reserve. It does not approve the remaining pilot funding or the estimated annual funding for a full program.

Money#

The decision allocates $1 million in one-time funding; City staff estimate the pilot’s total cost at $4 million.

• Staff estimate the pilot’s costs across 2026–2028 as $1.2 million for a central project team, $1.6 million for business-unit resources, and $1.2 million for external consultants.
• The decision directs staff to consider funding the rest of the pilot in the 2027–2030 Business Plans and Budgets; it does not commit that funding.
• City staff estimate a fully implemented program would cost about $4.5 million annually once fully running. Council did not approve that ongoing funding.

What is unclear#

• Which three business units will be selected, and what criteria will determine the final selection.
• Whether the remaining pilot costs will be funded through the 2027–2030 budget process.
• What, if anything, Council will decide about full implementation after receiving the pilot findings.
• How City staff will judge whether the pilot’s benefits exceed its costs. Staff identified a risk that savings or efficiencies may not do so.
• No public engagement was undertaken for this decision.

Case for#

• City staff say a pilot can test whether reviews identify worthwhile efficiencies and savings before Council considers a citywide program.
• The pilot focuses on three units first, rather than committing immediately to reviews of all 35 business units.
• City staff say the approach is intended to find efficiencies while maintaining baseline service levels.

Case against#

• City staff warn that identified savings or efficiencies may not exceed the pilot’s estimated $4 million cost.
• A full program would have estimated ongoing costs of about $4.5 million a year, but the decision does not establish how Council would weigh those costs against any benefits.
• City staff’s definition of cost savings can include reducing a unit’s output. The decision does not specify how service reductions would be assessed or limited.
• Councillors Atkinson and Schmidt voted against the motion; the supplied materials do not give their reasons.