(rdnewsNOW)

By rdnewsNOW staff

Jan. 23-26, 2024

Administration to present amended 2024 Budget to council

Dec 19, 2023 | 3:20 PM

Red Deer city council will review an amended 2024 budget next month.

It will take place Jan. 23-26, 2024.

According to City officials, the 2024 budget was originally approved by council as part of a two-year budget in 2022; however, administration says it has re-evaluated the budget to ensure it better reflects current economic conditions.

“We’ve had to take a step back and take a second look at our 2024 budget,” said Mike Olesen, General Manager, Growth and Finance. “The reality is that our economic situation has changed since the budget was approved in 2022 – we’re facing inflation pressures, seeing decreased revenues, and less money flowing from the provincial and federal governments. Combined, these factors led to the need for an amended budget.”

City officials say this means the budget process will look a little different than expected this year. While it was anticipated that council would review the previously approved 2024 budget and make necessary adjustments in November, administration will instead present an amended budget in January.

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According to City officials, the amended budget will have options for council’s consideration that include a potential tax increase beyond the 4.1 per cent that was previously approved for 2024. While City officials say they don’t know exactly what this will look like until council reviews the budget in January, other Alberta municipalities are said to be seeing increases between 5-9 per cent.

City officials say other options will be presented to council that highlight the impact on other areas of The City’s finances if the tax rate remains at the approved 4.1 per cent.  

“We need to address the challenges we are facing today before they are unmanageable,” said Tara Lodewyk, City Manager. “For the future of our financial health and to continue to fund the essential services we all depend on every day, administration is preparing options and a recommended path forward to council in January.”

The City says citizens can expect to see a budget that positions The City for long-term growth and sustainability. Administration is expected to present a financial systems plan that will focus on measuring efficiency and citizen value. It will also aim to set a five-year plan for stabilizing the budget, ensuring the long-term health of reserve funds and setting projections for property tax rates.

“As we look to the future, improving our financial position and overall financial management are key priorities,” said Olesen. “We will be returning to single year budgeting with strong multi-year planning so we can chart a course for growth, while being able to respond and adapt to changing conditions.”

City officials say the budget documents will be available to the public at reddeer.ca/budget on January 8.

To learn more, visit 2024 Budget FAQs (pdf), or reddeer.ca/budget.