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"We've reached a point where there's not a lot of reduction we can absorb anymore," Chabot said. "If we can actually keep it to two per cent then we'd be accomplishing a lot, but it's not going to come without some challenges. To go below that would be a really hard sell." Last year, Calgary city council approved an effective tax freeze by dipping into the rainy-day fund to offset a 1.5-per-cent property tax hike. In April, councillors also decided to take $23.7 million in so-called tax room from the province and return it to taxpayers as a one-time rebate. Council members were later told by city manager Jeff Fielding that if council wanted to hold the line on taxes again in 2018, they would have to find $170 million. While council pre-approved a 4.7-per-cent tax increase for 2018 in its four-year budget plan, council was told it would cost $75 million to reduce the 2018 tax rate from 4.7 per cent to zero. However, city administration now cautions that dropping the property tax increase below two per cent would have a detrimental effect on services. According to the report going to council, the $170 million gap includes $24 million for Green Line LRT debt servicing, $33 million needed to cover the one-time money council used in 2017, and a $38-million loss from lower revenues from Enmax dividend and franchise fees. City council members and administration will meet Monday to discuss the proposed tax rate, cost-savings methods and potential service impacts. If councillors approve the city's recommendations, administration will build a municipal budget around a two-per-cent increase to be presented after October's civic election. A new council will determine the 2018 property tax rate at that time.

For the original version including any supplementary images or video, visit http://www.calgarysun.com/2017/05/13/city-councils-budget-call-for-around-a-two-per-cent-tax-hike

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