(rdnewsNOW/Josh Hall)

By Josh Hall (Twitter: @Vancan19)

2.49% tax increase projected

Operating Budget aims to maintain effective, efficient services in tough economy: City officials

Dec 12, 2019 | 2:51 PM

The City of Red Deer’s 2020 Operating Budget will continue an era of adapting to a difficult economic normal, city officials say.

At a proposed $385.7 million, the budget seeks to maintain cost effective and efficient services based on the new economic reality.

However, Mayor Tara Veer says they may be approaching a watershed moment where something will have to give.

“It’s a recession that’s become, every year, deeper and more prolonged,” she stated. “The implications that has for municipalities includes not seeing recovery in our investments, or in our revenues, but our community only has a certain capacity to absorb new tax, utility rates or user fees.”

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Veer says we are in a time now where necessity states everyone must do more with less given the economic pressure, but at the same time maintaining the status quo in terms of service levels is also important.

The City is also facing around $2.8 million in additional operating costs it must accommodate following the provincial budget released in October. Veer notes that budget included the cancellation of grants in lieu, and also requires The City to say goodbye to approximately $1 million in police fine revenue.

The operating budget process should be streamlined, nonetheless, resulting in a smoother several days of debate, including a deeper look at the base budget.

Council will begin budget debate faced with a proposed 2.49 per cent tax rate increase. That includes the annual 1.0 per cent for future capital investment, while the rest is an operating increase.

“We understand that any amount of tax increase, especially in this time of economic austerity, is disappointing for our residents; however, with a reduction in revenue sources in other areas such as grants, there is still need for revenue to cover the costs of services our residents expect,” says City Manager Allan Seabrooke.

“Administration was challenged to find ways to be effective and efficient in developing this budget and we were able to find some corporate wide savings that have been built into this budget such as an increase in the staff vacancy factor.”

Of note, there is currently no proposal to fund additional police officers, though 20 per cent of the budget is still to be directed towards policing, and the overall policing budget is going up by 1.93 per cent. Elsewhere, there is a 34.5 per cent increase for Planning Services, 28.31 per cent for Inspections and Licensing, 1.78 per cent for Protective Services, and 1.35 per cent for Emergency Services.

Construction revenue is expected to be slightly less than last year at $900,000 (from $1.078 million); it was at $2.62 million in 2015.

Residents can submit feedback on the proposed 2020 Operating Budget starting Friday all the way through Dec.27 online, or in person at City Hall, the Recreation Centre, the Collicutt, or any branch of Red Deer Public Library.

Council deliberations are scheduled for Jan. 7-10 and 13 from 12-5 p.m. daily.