Operating Variance & Timeline
When we spend less than we budget for or have higher revenue, we have a favourable operating variance. We keep a close eye on this and report it to Council regularly. Council can use these funds to support Calgarians, businesses and the community.
Managing our finances
We manage money carefully and responsibly. We follow the rules in the Municipal Government Act, City Charter and Council Policy guidelines. We only budget what's needed to run City services.
2026 Q1 operating variance
As of March 31, 2026 (first-quarter), the year-to-date variance is $45 million favourable. Q1 2026 favourable operating variance ($ millions)
Q1 2026 favourable operating variance
The variance came from:
- Higher revenues, including:
- Higher transit pass sales, aggregate and asphalt sales, parking enforcement and mobility permitting revenues.
- Higher permit revenues in Planning & Development Services, payments received from Calgary Municipal Land Corporate due to advancement of projects.
- Higher franchise fees from ATCO and ENMAX.
- Lower than expected costs due to:
- Salary and wage savings from vacancies and recruitment delays.
- Pace of capital-related work in Water Services resulting in lower debt payments
- Timing of projects driving lower contracting and consulting costs.
- Favorable variances are partially offset by:
- Higher than planned reserve activity tied to increased revenues and delayed spending.
Using the variance
The 2026 year-end variance are committed towards funding high priority operating and capital requests.
2025
2024
$276.3 million. Here’s where Council allocated these funds:
- $57 million to fund high-priority 2025 investments including:
- Housing
- Community Safety and Social Wellbeing
- Transit and Mobility
- $134 million to the Green Line Capital Fund
- $85.3 million was uncommitted and transferred to the Fiscal Stability Reserve.
2023
$236.4 million. Here’s where Council allocated these funds:
- $100 million to fund high-priority 2024 investments including:
- Affordable housing
- Public safety
- Transit - $137 million was uncommitted and transferred to the Fiscal Stability Reserve.
2022
$258.7 million. Here’s where Council allocated these funds:
- In November, $65 million to:
- maintain public transit fees at 2022 levels
- support Calgary’s Mental Health and Addiction Strategy
- increase funding for the Calgary Fire Department. - In April:
- $32 million as a one-time budget increase for Calgary Transit to offset pandemic impacts. - $161.7 million was uncommitted and transferred to the Fiscal Stability Reserve.
Timeline
Each year, we follow a process to notify Council and confirm our operating variance.
We use the funds to cover:
- emergency operational situations
- unplanned reductions in revenue
- urgent capital expenditures
- one-time operating budget expenditures
Investing for Calgarians
Council uses one-time funds from the operating variance to further support Calgarians, businesses and the community.
See our 2025 service investments