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(Josh Hall)
Red Deer Hospital Expansion and more

City of Red Deer pleased by 2022 provincial budget

Feb 25, 2022 | 12:57 PM

The City of Red Deer expressed encouragement on Friday for the provincial budget announced on Feb. 24.

“The provincial budget tabled yesterday contains funding announcements for major investments in the community while maintaining core capital and operating funding streams for The City. The budget focuses on moving Alberta forward by building health care system capacity and job creation,” said The City in a release.

The following projects in Red Deer were allocated in this year’s provincial budget:

  • Red Deer Regional Hospital Centre expansion project – $193 million over next three years
  • Red Deer Justice Centre – $63 million in 2022/23
  • Red Deer Regional Airport expansion – $7.5 million over three years
  • Equipment for Cancer Corridor Projects — Provides equipment for the Radiation Therapy Cancer Corridor in Grande Prairie, Red Deer and Lethbridge

“There are several infrastructure investments in Red Deer and area, including the $1.8 billion investment in our hospital. Investments like this stimulate our local economy in the short and long term,” said Mayor Ken Johnston. “We didn’t see any surprises in this budget and are happy to say that the provincial revenue we rely on for everyday services to our citizens are maintained.”

Hitting close to home for the mayor is the Red Deer hospital expansion project coming to fruition after years of advocating for its upgrade. As his wife Isabelle passed away in the hospital’s ICU in 2017, Mayor Johnston believes this expansion will also benefit relating services and other domains like the nursing program at Red Deer Polytechnic.

“Emotionally it certainly tugged at my own heartstrings,” he said. “It was a monumental day in the history of central Alberta that we would get the single largest taxpayer contribution to a medical facility in the history of our province.”

After speaking with members in Alberta Health Services, the mayor confirmed the top priority for the expansion is the cardiac catheterization service.

The City receives funding through several provincial revenue sources each year, including Grants in Place of Property Taxes (GIPOT) and the Municipal Sustainability Initiative (MSI) – capital and operating. Based on the budget tabled Thursday, these amounts remain stable meaning there will be no impact to the current capital or operating budgets of The City. The MSI program will change to the Local Government Fiscal Framework in 2023 and The City looks forward to understanding how the change will benefit The City’s financial health.

“MSI is a core funding stream of our capital budget and for over 10 years it has been a steady reliable funding program,” said General Manager of Corporate & Employee Services, Lisa Perkins. “Because there is no reduction, we can complete much needed capital work in our community and contribute to economic recovery.”

The total education requisition collected by The City on behalf of the province will remain unchanged for 2022 tax notices. City council will pass a tax rate bylaw in April that includes the education requisition, the requisition for the senior’s lodge program and the property tax requirement approved by council in November 2021 at zero percent for the municipal operating budget.

In addition to the main funding streams remaining stable, The City is encouraged to see investments in post-secondary education, housing, and health care including mental health which have the potential to have a positive impact on the community and local residents. The City says it will continue to review the budget over the next several weeks to fully appreciate its impacts to the community.

The provincial budget is funded through a variety of sources, and the province is projecting increases in all revenue areas such as oil and gas, agriculture and exports.

“Between the economic downturn and global pandemic, the past several years have been emotionally draining and has created financial strain in every area,” said Johnston. “Yesterday’s budget gives us hope for a more prosperous future in Alberta. I am looking forward to seeing how today’s investments impact our community for generations to come.”