(Image Credit: rdnewsNOW/Ian Gustafson)

By Ian Gustafson

Maintain 3.97% tax rate increase

Red Deer city council finalizes 2026 operating budget and three-year operating plan

Mar 10, 2026 | 6:12 PM

Red Deer city council voted unanimously in favour of approving the 2026 adopted operating budget and three-year operating plan.

As a result, council approved a $200,000 reduction to the budget; however, there will be no tax rate change to the 3.97 per cent property tax increase set on Dec. 9 during interim budget deliberations.

According to the city, approving an adopted operating budget is a required step under the Municipal Government Act, and enables council to consider the 2026 tax rate bylaw in April.

As a result, several revisions were made to the budget, including impacts related to the disestablishment of the Downtown Business Association, carry-forward requirements, and a correction to grants in place of taxes.

See below for the full list of revisions:

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Red Deer city council finalizes 2026 operating budget and three-year operating plan

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List of revisions to the adopted 2026 operating budget. (Image Credit: City of Red Deer)

The $200,000 reduction came in the form of a decrease in the transfer to the operating reserve – tax supported (ORTS).

Council was also presented with a second option to adopt the budget as reconciled, which would have resulted in a 4.08 per cent municipal property tax increase. It also would have had no impact on ORTS.

ORTS is a financial reserve fund for the city to use to manage budget fluctuations or unexpected costs, among other reasons.

Councillor Adam Goodwin also brought forward an amendment to adjust the ORTS contribution by $200,000. However, the motion was defeated by a 2-7 vote. Councillor Goodwin and councillor Kraymer Barnstable were the only two who voted in favour.

Goodwin’s amendment would have directed the administration to go through operations and find the $200,000 without affecting the bottom line.

Councillor Cassandra Curtis raised concerns about how much time and effort it would take administration to find where that money would come from.

Mayor Cindy Jefferies shared some of the same concerns.

“I think we’ve looked at a number of situations in our past budget where we are asking for more and more efficiencies, and I wonder how far we can push,” Jefferies said.

“I have always operated under the impression and the understanding that when staff can find efficiencies, when they have money in a budget line they don’t need to spend, that money in good faith goes forward to offset reserves to come back into operating other areas… I know our ORTS is not in great shape so I’m hesitant to even support pulling money out of that.”

Next up, city council will consider the 2026 tax rate bylaw on April 14.