Summary#

Calgary City Council approved a $51 million increase to the 2027 capital budget for the Nose Creek Sanitary Trunk Extension and gave first reading to the bylaw that would allow the City to borrow up to $51 million. The stated goal is to advance wastewater infrastructure serving Calgary and Airdrie.

• The $51 million budget increase is to be funded through self-supported debt.
• Council has not passed the borrowing bylaw: it withheld second and third readings until the required advertising is complete.
• Airdrie is to lead construction of the full project, estimated to cost $113 million. Calgary’s estimated share is $51 million; Airdrie’s is $62 million.
• The City expects to recover its share through wastewater rates for regional customers and, when Nose Creek Area Structure Plan lands are developed, through an off-site levy if the project is added to the levy bylaw.

What it means for you#

• Calgary wastewater customers: The City plans to seek recovery of its share through future wastewater rates. Those rates still require Council approval.
• Developers in the Nose Creek plan area: The City expects off-site levies to help recover costs when land is developed, if the project is added to the Off-site Levy Bylaw. The decision does not set the levy amount.
• Airdrie: The City’s decision enables it to work toward an agreement for Airdrie to lead construction. Calgary’s cost recovery payments are expected to start in 2027, under that agreement.
• Calgarians generally: This is a capital and borrowing decision, not an immediate change to wastewater service or rates. The borrowing bylaw still needs further readings.

Money#

The approved 2027 capital budget increase is $51 million, funded from self-supported debt.

• The project’s estimated total cost is $113 million: $51 million for Calgary and $62 million for Airdrie.
• Council gave first reading to a bylaw authorizing borrowing of up to $51 million, but has not passed it.
• City staff say Calgary’s repayment will start in 2027. Recovery through rates and levies depends on future decisions and development.

What is unclear#

• The borrowing bylaw’s remaining readings and final passage are still outstanding; the decision requires advertising first.
• The future wastewater rates, levy amount, and timing of cost recovery are not set by this decision.
• The formal construction agreement with Airdrie, including payment terms, is not provided.
• City staff say cost recovery could be delayed or insufficient if Airdrie’s growth is slower than projected.
• The report says no public engagement was required for this decision; it does not provide public submissions or a public response to the project.

Case for#

• City staff say Airdrie’s existing lift stations are nearing capacity, and the extension would support wastewater servicing beyond 2027.
• Staff say the project could also support future Calgary development in the Nose Creek plan area, for up to approximately 43,000 people.
• Staff say approving the budget now would let Calgary make an agreement with Airdrie in time for construction to start in 2026, with Airdrie leading the work.

Case against#

• City staff identify a risk that wastewater rates needed to recover Calgary’s share may not be approved. The City might then have to reprioritize other capital projects or find another funding source.
• Staff say cost recovery may lag or be insufficient if Airdrie’s growth is slower than expected.
• The project would compete for City staff, consultants, and contractors, although Airdrie leading construction is intended to reduce pressure on City resources.
• Council approved the decision 15–0, so the minutes record no opposing votes or arguments from councillors.