(rdnewsNOW file photo)

By rdnewsNOW staff

Operating and capital budget

City of Red Deer proposes 7.36% tax increase in draft budget

Nov 24, 2025 | 12:01 PM

The City of Red Deer has released its draft of the 2026 Operating and Capital Budget ahead of deliberations in December.

It is now ready for public review on the city’s website at reddeer.ca/budget.

Questions and feedback for council’s consideration can be sent to budget@reddeer.ca until Dec. 1. Council will make decisions on the budget during deliberations from Dec. 8-12.

Most notably, city administration is proposing a 7.36 per cent property tax increase, which equates to approximately $54.21 annually per $100,000 of residential assessed value.

This increase, according to the city, is meant to address contractual obligations such as the RCMP policing contract, and the personnel provision, which covers wage and benefit adjustments required to retain and support city staff.

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It’s also meant to address pressures from inflation and replenish financial reserves, while also maintaining essential services.

Meantime, the city says the budget continues its focus on long-term financial sustainability while also maintaining essential services and investing in infrastructure, systems, and people in Red Deer.

They describe it as a lean and responsible budget with some spending requests and no proposed service level reductions.

“This budget represents the next step in Red Deer’s journey toward a financially sustainable, future-focused, and community-centred city,” said Tara Lodewyk, City Manager. “Over the past several years, council has made difficult but necessary decisions that are now showing results. Our reserves are recovering, our financial risks are reducing, and our organization is becoming stronger and more resilient. This means we are one step closer to stabilizing and getting away from the extreme ups and downs of tax increases from zero to double-digit tax increases.”

When it comes to the potential tax rate increase, the city says if approved, they will maintain a competitive property tax position when compared to other Alberta cities.

(City of Red Deer/Supplied)

The city explained that the proposed budget also continues the direction set by the previous council and advances the recommendations highlighted in the financial roadmap.

“Through disciplined financial management, we are taking deliberate steps to balance today’s needs with tomorrow’s opportunities,” said Tricia Hercina, Executive Director of Corporate Performance & Supports. “Budget 2026 invests in the infrastructure, systems, and people that support a resilient and responsive organization. It’s about maintaining services residents depend on every day, while continuing to strengthen our financial position for the future.”

Quick Facts:

• Property Tax Increase: A proposed 7.36 per cent increase, equating to approximately $54.21 annually per $100,000 of residential assessed value.
• Capital Investment Focus: Prioritization of asset preservation and lifecycle management to maintain reliability and mitigate risk. Strategic use of debt remains within legislative and council limits.
• Debt position: Projected at $349.9M by year-end 2025, well within both city and MGA thresholds. The MGA limits the amount of debt municipalities can take on to 1.5 times their revenue; the city’s current debt is 51 per cent of that amount. Council further restricts debt to 75 per cent of the MGA limit; The city is currently at 68 per cent.
• Reserve health: Operating reserves will continue to be replenished with further planned contribution of approximately $10M toward the target minimum threshold of $25M.