(rdnewsNOW file photo)

By Josh Hall (Twitter: @Vancan19)

capital and operating

City council to consider $10 million in tweaks to multi-year budget on Monday

Nov 27, 2021 | 1:08 PM

Red Deer city council will hold budget talks this week.

Following budget deliberations last year, council, for the first time, approved a multi-year budget covering 2021 and 2022.

Council will now be provided a financial update from administration and have the opportunity to consider several adjustments.

“The budget process in year two of a multi-year budget is quite different than any other our organization has done in the past. Rather than taking several days or weeks to review an entire operating or capital budget, council will be asked to focus on only the significant adjustments that need to be made,” said Tara Lodewyk, Interim City Manager. “We have maintained a zero per cent tax increase operating budget, as per council guidelines in 2020, meaning that any changes being considered would be funded through our reserves.”

The approved operating budget for 2022 is worth $384.9 million and is primarily funded through property taxes, as well as user fees and sales of goods and services.

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With a zero per cent tax increase, the City notes, this means no additional funding is needed through property taxes. This doesn’t necessarily mean property owners won’t see changes to their bill, however. Those may fluctuate based on property assessments and the tax base, as well as with changes to Provincial requisitions collected via the City.

Council will consider several new operating items to be funded through operating reserves, three of which come with one-time costs. The remainder are part of The City’s service delivery.

The total value of those items is $5.422 million, and include:

-property tax penalty revenue reduction – $300,000
-increase in tax adjustments from appeal losses – $250,000
-asset retirement obligations – $100,000
-National Day for Truth and Reconciliation – creation of a stat holiday for City staff to recognize the occasion – $230,000
-Emergency Services overtime – $1.2 million
-Gov’t of Alberta biology casework – $200,000
-RCMP contract settlement – $2.37 million
-Social Diversion Team – $525,000 (same as last year)

Meantime, the approved 2022 Capital Budget has a dollar amount of $75.1 million, funded through debt, operating transfers, grants, reserves and developer/customer contributions. These would mean a total adjustment to the budget worth $5.976 million.

Projects include:

-E-ticketing software to replace manual process for peace officers – $35,000
-Replacement of aerial pumper truck for Emergency Services – $2.386 million
-Hydrovac Waste facility for Environmental Services – $3.555 million

“In any multi-year budget, we anticipate minor adjustments during the review years to respond to external influences. The 12 capital and operating requests are essential to continuing to deliver essential services in our community, while also complying with provincial and federal regulations,” said Lodewyk. “Citizens will not see a tax impact this year due to these additions; they will also not see any changes to the overall service delivery in our community.”

Mayor Ken Johnston commented on the priorities of The City’s budget.

“Last year administration brought forward a new streamlined budget approval process during our first multi-year budget, and we are looking forward to this year’s review process,” said Johnston. “Our focus continues to be on community safety, social responsibility and being an economic leader. Our approved budgets are reflective of Council priorities, and we anticipate any adjustments being put forward align with these while responding to external influences.”

Budget talks start Monday, Nov. 29 at 10 a.m.

For information on property taxes, visit www.reddeer.ca/tax, and for more information about the budget, read this FAQ and visit reddeer.ca/budget.