Canadian Taxpayers Federation urges Red Deer city council to cut spending

Edmonton placed seventh on the list with spending of $3,116 per person and Calgary eighth at $3,044.

The CTF report is based on data published by the provincial government.

“The thing to consider is, Alberta municipal governments are already one of the biggest spenders in Canada,” says CTF Alberta Director Franco Terrazzano. “It likely just has to do where in the past, there was more revenue coming in through the door when we had those big economic booms. But right now, governments haven’t responded to the recent economic downturns.”

Terrazzano suggests Red Deer spending more than the provincial average of similar-sized municipalities is not a good thing.

“Alberta municipalities tend to spend more than their counterparts in other provinces, so Red Deer is among the big spenders of the big spenders,” he points out. “That’s why we’re calling on Red Deer city council and all city councils to go through their budgets line by line and see as much wasteful spending as they’re able to cut so that they can lower property tax bills.”

Terrazzano describes property tax bills as one of the most harmful types of taxes, especially during economic downturns.

“Imagine you lose your job, you see your income evaporated,” says Terrazzano. “Then you go to the mailbox and you still have that big property tax bill that you have to pay on your home. It’s the same with businesses.”

“We’ve just heard from so many small businesses that have seen their revenue evaporate, but they still have to pay the big tax bill,” he remarks. “Property taxes are very damaging for those reasons and that’s why it’s so important for cities to do their part during these tough times.”

On April 14, Red Deer city council agreed to postpone 2020 property tax payments from Jun. 30, to Sept. 30, and defer late payment penalties to Oct. 1 due to the COVID-19 pandemic.

Other decisions such as waiving downtown parking and other fees and deferring payments for utilities have also been made by the City and council to help residents and businesses through the pandemic.

Terrazzano says governments have to do what families and businesses already do to adjust to the current economic climate.

“That’s prioritizing what is necessary and not spending money right now on what is merely a ‘want’ or ‘nice-to-have’,” he explains. “So many families have had to make tough choices. It’s time for Red Deer to do it as well because taxpayers, whether it’s a family or business, they need tax relief and for Red Deer to be able to provide that tax relief, they have to cut spending.”

According to the CTF’s report, medium-sized municipalities in Alberta with populations between 5,000 and 30,000 spend an average of $3,397 per person per year.

Those in central Alberta that spend above the average include:

Kneehill County – $5,358
Leduc County – $5,253
Lacombe County – $4,722
Clearwater County – $4,459
County of Stettler – $4,199
Red Deer County – $4,050
Drayton Valley – $3,954

Medium-sized communities in central Alberta that spend below the provincial average include:

Rocky Mountain House – $2,959
Mountain View County – $2,948
Devon – $2,739
Olds – $2,726
Camrose County – $2,718
Ponoka – $2,654
Stettler – $2,563
Camrose – $2,515
Innisfail – $2,504
Lacombe – $2,469
Wetaskiwin – $2,452
County of Wetaskiwin – $2,446
Sylvan Lake – $2,409
Ponoka County – $2,336
Blackfalds – $2,293
Didsbury – $1,970

by Sheldon Spackman

Canadian Taxpayers Federation urges Red Deer city council to cut spending

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