Summary#

Calgary City Council passed third reading of Bylaws 5B2026 and 6B2026 on April 28, 2026. They amend existing borrowing bylaws, raising the City’s authorized borrowing limits for water, wastewater and stormwater capital investments. The stated goal is to help finance water infrastructure work.

• Bylaw 5B2026 raises the borrowing limit under Bylaw 11B2024 from $426.162 million to $941.362 million, an increase of $515.2 million.
• Bylaw 6B2026 raises the limit under Bylaw 10B2024 from $612.556 million to $661.756 million, an increase of $49.2 million.
• The authorized borrowing may have a term of up to 40 years.
• Council passed both bylaws 14 to 0.

What it means for you#

• Water users and the public: The bylaws authorize the City to borrow more for capital investments in water treatment and supply, wastewater collection and treatment, and the water distribution network. Bylaw 6B2026 also covers stormwater management. The bylaws authorize borrowing; they do not require the City to borrow the full amounts.
• People who pay City charges or taxes: City staff say repayment of borrowing under Bylaw 5B2026 would come from user fees and/or other sources, and repayment under Bylaw 6B2026 would come from off-site levies. The report says any revenue shortfall would be addressed through municipal taxes.
• Taxpayers: City staff say the added debt would be included in the City’s debt-limit calculations. Staff report that the City’s $1,603.118 million of debt would remain within its debt limits.

Money#

The bylaws authorize higher borrowing limits, but the supplied material gives no estimate of borrowing costs or interest rates.

• City staff say Council approved a $609.5 million increase to the capital budget for the Water Distribution Network on March 17, 2026.
• The borrowing terms may be up to 40 years. Repayment sources differ between the two bylaws, as described above.
• City staff say the City’s debt would remain within its debt limits; the report does not give an estimate of the total interest or other costs of the added borrowing authority.

What is unclear#

• How much of the new borrowing authority the City will use, and when, is not stated.
• The interest rates, repayment schedules and total repayment costs are not provided.
• The report says Bylaw 5B2026 may be repaid from user fees and/or other sources, but does not specify what those other sources are or how much each source would contribute.

Case for#

• City staff say the extra borrowing authority would help finance capital investments, including the Water Distribution Network budget increase Council approved after receiving findings from the Bearspaw South Feedermain Independent Review Panel.
• Borrowing spreads repayment over time, with terms of up to 40 years, rather than requiring the full capital cost to be paid at once.
• City staff say the resulting debt would stay within the City’s debt limits.

Case against#

• The bylaws permit borrowing for up to 40 years, but the report does not state the interest rates or total repayment costs. The long-term cost to the City is therefore unclear.
• City staff say any revenue shortfall would be addressed through municipal taxes. That could shift some repayment costs to taxpayers if the planned sources are insufficient.
• The City is authorized to borrow more, but the materials do not say how much it will ultimately borrow or how the funds will be allocated among the listed infrastructure purposes.