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 Q2 operating variance
As of June 30, 2026 (second-quarter), the year-to-date variance is $110 million favourable.
Q2 2026 favourable operating variance
The variance came from:
- Higher revenues, including:
- Higher Government Grant revenues for Calgary Police Service.
- Higher permit revenues, Renewable Energy certificate sales and grant funding in Planning & Development Services.
- Higher third-party insurance settlements in Law, Legislative Services & Security due to timing of settlements received.
- Interest savings, higher fines and penalty revenues and stronger investment income.
- Lower than expected costs due to:
- Lower salary, contracting and consulting costs.
- Salary savings and lower operating costs in Law, Legislative Services & Security.
- Higher capital overhead recoveries and lower land-related costs in Infrastructure Services.
- Timing of spending in Calgary Police Service, the Chief Operating Office and other departments.
- Favorable variances are partially offset by:
- Reserve activity and the timing of reserve-funded expenditures and transfers.
Using the variance
The 2026 year-end variance is committed towards funding high priority operating and capital requests.
Previous years reports.
2026
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