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By rdnewsNOW Staff

RESPONDING TO DRAFT BUDGET

Red Deer District Chamber calls for reduced city expenses ahead of budget debate

Nov 6, 2024 | 4:26 PM

The Red Deer District Chamber is responding to the City of Red Deer’s 2025 Draft Budget with a call to reduce tax supported operational expenses by three per cent.

Chamber representatives say this recommendation represents a balanced approach that acknowledges the “significant” amount of work the city could do to improve efficiency and manage costs; A three per cent reduction would save about $9-10 million, says the Chamber.

“We have looked closely at the city’s financial position for 2025 and believe it is essential to consider further expense reductions alongside property tax increases,” says Chamber CEO Scott Robinson. “The City of Red Deer faces a significant deficit, as revenues have fallen short of expenses over the past few years. While we agree that the city must address this imbalance and reduce its reliance on reserves and utility dividends to balance the budget, we believe that the full financial burden should not fall solely on taxpayers and property owners.”

Related: Red Deer releases draft 2025 budget

A recent survey distributed to Chamber members found that they see it as crucial for the city to review its services and the costs associated with delivering them. Nearly 52 per cent of respondents wanted to see the city implement alternative ways of doing business as a way to reduce the deficit.

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The survey also asked how a potential double digit tax increase would impact their businesses, and about 64 per cent of respondents said it would result in “significantly increased operating costs.”

“We believe a balanced approach is both reasonable and necessary. By reducing operational expenses by 3 per cent, the city could save taxpayers approximately $9-10 million, which would, in turn, make any necessary tax increase more manageable this budget year,” Robinson explains.

Overall, Chamber officials say the business community is clearly communicating that a double-digit tax increase is not sustainable and would significantly impact the ability of some businesses to operate and thrive within the city.