Officials at city hall are rejecting the idea that having savings in city coffers is proof Calgarians are over-taxed.

The City of Calgary has $1.7 billion tucked away, but much of that cash is targeted for specific programs or projects. The main so-called rainy day fund has $443 million in it, but a third of that is for flood-related expenses.

Mayor Naheed Nenshi doesn't agree with the notion that the city collects too much tax — and he points out the city will be relying on its reserves during tough economic times.

"Remember that we already have a 40 or more million-dollar shortfall on our revenue for this year because of the economic downturn, and it's much better to be able to have money in reserve to be able to use it to cushion that, rather than have to go to the taxpayer for it."

City manager Jeff Fielding doesn't agree with reports that the city is sitting on bags of money while bureaucrats devise ways to spend it.

"It's talked about being a windfall and that we've overtaxed … and that couldn't be farther from the truth."

The City of Calgary follows council direction to set aside money in good years to prepare for downturns like the one Calgary is in right now, he said.

Some councillors say they're willing to look at the rules which determine how much money is held in reserve, but any possible changes won't be debated until this fall.