City of Red Deer reports improved finances in annual report

Meanwhile, there was also a $38.9 million decrease in net debt to $170.2 million from $209 million. He said this is a very positive improvement year-over-year.

In addition, operating revenues were up $33.6 million because of an additional $17.6 million in taxes, thanks to the double-digit tax rate increase in 2025.

The operating reserves have also increased to $9.1 million compared to the $5.4 million deficit the year prior, which is an increase of $14.6 million.

Mugford said this is positive news, but said there’s still work to be done.

“While there are still challenges ahead, 2025 shows we’ve stabilized and there’s a strong path forward,” he added. “This is a result of tough choices made by the prior council during the 2025 budget deliberations to increase revenues, matched with an equally strong effort by the administration to manage expenses. That work continues, and it’s clear through decisions stemming from the 2026 budget process that long-term fiscal responsibility is a priority for many on this council.”

Councillor Adam Goodwin said the financial situation is a good news story and they’re on the right path.

“It’s audits like that that help keep us there,” he said.

Councillor Kraymer Barnstable said council has done good work in terms of stabilizing, which is something he said they can report proudly to the community.

“This isn’t something where you can take a big exhale and say ‘hey, we did it and are in the clear.’ We’re finally at a point where things are a little bit more stable, and now we can make sure we have our vision on what we want to see moving forward and how we take care of our finances,” Barnstable said.

“We really have to take care, we have to continue to build our reserves, but we have to do it in a way that isn’t asking so much of the public, which is what we had to do because of decisions made in previous years.”

by Ian Gustafson

City of Red Deer reports improved finances in annual report

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