Summary#

Calgary City Council adopted directions for refining proposals in the 2027–2030 budget cycle. It also raised the revenue target for ATCO Franchise Fees by $25 million in 2027 and directed City staff to study a possible change in fee methodology. This is budget-planning direction, not approval of the full 2027–2030 budget.

• City staff must use the preliminary information and approach in the confidential report to refine and prioritize budget proposals for later consideration.
• City staff must increase the annual revenue targets for ENMAX Local Access Fees and ATCO Franchise Fees by estimated growth, and increase ATCO’s target by a further $25 million in 2027.
• City staff must report to Council in December 2026 on the analysis and impacts of changing the current franchise fee methodology to the Distribution Tariff methodology.
• The confidential report and related material remain confidential until a review no later than December 31, 2026. They may be shared with Business Planning–Finance, and with City staff and Calgary Police Service only where required.

What it means for you#

• People and businesses: The decision does not itself set a fee rate or say how much any person or business will pay. The effect of the higher revenue targets on charges is not stated.
• City staff: They must refine and prioritize budget proposals, meet the revenue-target directions, and prepare the December report.
• Council: It will consider the staff analysis of a possible change in methodology and further budget proposals later in the cycle.

Money#

The decision raises a revenue target, but the materials do not estimate its effect on actual revenue or charges.

• ATCO Franchise Fees’ target revenue is to increase by $25 million in 2027, in addition to an increase based on estimated growth each year.
• ENMAX Local Access Fees’ target revenue is to increase each year by estimated growth.
• No cost estimate or estimate of the effects on customers is available.

What is unclear#

• The confidential report and attachments are not provided, so the preliminary budget approach and proposals cannot be assessed.
• The decision does not explain how the fee revenue targets translate, if at all, into rates or charges paid by customers.
• It does not specify the amount of estimated growth, or the dollar value of the annual target increases.
• The December report must analyze a possible methodology change; the decision does not make that change.

Case for#

• A possible argument for setting annual targets based on estimated growth is that the targets would account for growth rather than stay fixed.
• The additional $25 million ATCO target gives City staff a specific revenue-planning direction for 2027.
• Council asked for an analysis of the alternative fee methodology before deciding whether to change it.

Case against#

• A higher revenue target could lead to higher charges, but the decision does not explain whether that would happen or who might pay more.
• Councillors Ward, Wyness and Johnston voted against the fee-target direction. The minutes do not give their reasons.
• Because the underlying budget information is confidential, the public cannot assess the proposals being prioritized or the basis for the revenue targets.