(rdnewsNOW file photo)

By rdnewsNOW Staff

CHALLENGES NEED ADDRESSING

Red Deer and District Chamber responds to strategy for Budget 2026

May 2, 2025 | 1:58 PM

The Red Deer and District Chamber is encouraged by the city’s intentions for Budget 2026, but remains concerned about the pressures impacting local businesses, such as rising operating costs, labour shortages, inflation and tax increases.

On April 29, Red Deer’s city council received a 2024 Financial Report and an overview of what the 2026 Budget process will look like. This budget document included a stated intention to try to minimize tax increases, safeguard reserves and maintain essential services next year.

—

Read more: Annual Financial Report paints challenging picture of Red Deer’s fiscal health

—

numerous incidents

QEII Highway very icy Monday morning

2h ago

"unprecedented levels of discrimination"

Ponoka Pride Society dissolves, citing limited resources

2h ago

Home-style dinner

Hope Mission to hold Easter dinner for Red Deer's most vulnerable residents

3h ago

In a statement released afterward, the Chamber says while it appreciates the stated effort to minimize tax increases, its members have been clear in their thoughts that sustainability needs to be driven by factors beyond taxation, such as fiscal discipline, service prioritization and innovative solutions.

In 2024, the Chamber conducted a budget focus group and membership survey in which more than 84 per cent of surveyed businesses said the city should focus on cost-cutting and efficiency improvements; only 13 per cent supported a tax increase to maintain service levels.

“These results reflect a collective belief that transformational change — not incremental adjustments — is required to realign revenues with expenditures,” the Chamber states.

The city is in the process of developing a Financial Road Map intended to help council evaluate which services the city should continue to deliver and what kind of financial benchmarks it should be hitting.

The Chamber commends this initiative and encourages the document to offer bold, evidence-based recommendations on core and non-core services. It says it’s also pleased to see the City of Red Deer’s openness to shifting its approach to things like economic development and the electric utility to ensure it’s in a competitive position.

Moving forward, the organization suggests enhancing service delivery through innovation, exploring public-private partnerships and examining opportunities to divest or lease underutilized assets. This non-tax revenue could help replenish reserves and create fiscal flexibility, it says.

“The Chamber remains committed to working collaboratively with the City of Red Deer to ensure a fiscally sustainable future,” state representatives. “We are confident that through strategic focus, transparent engagement, and bold decision-making, Red Deer can emerge stronger, more resilient, and more competitive, which will be of benefit to both citizens and the business community.”

The Chamber hopes to see Red Deer remain a vibrant and growing city where businesses can thrive, while residents receive high quality services that are delivered responsibly.