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Spending cuts and federal aid result in surplus for City of Calgary

Last Updated Apr 21, 2021 at 7:03 am MDT

Calgary City Council (CREDIT: Calgary City Council)

CALGARY (660 NEWS) – After cutting spending to avoid being in the red the City of Calgary actually closed last year with a multi-million dollar surplus.

Municipalities in Alberta cannot run deficits, so when the city projected a massive deficit, it cut spending by over $65 million and laid off around 1,200 workers.

Not long after making those cuts, the federal and provincial governments delivered an aid package worth about $200 million.

The result of all this was a surplus of $98 million.

WATCH: Council looks to cut budget, provide tax relief

Budget surpluses generally go into the city’s rainy day fund, but this money is expected to go right into COVID-19 relief.

Meanwhile, the city’s annual report also showed Calgary’s investment portfolio earned them $211 million and that debt has been steadily decreasing between 2016 and 2020.

Last November, City Council passed the 2021 budget which included a property tax freeze and nearly $24 million in cuts to the operating budget.

Cuts to the Calgary police service and transit were included in the budget.

The result was spending decreases of $90 million.