(rdnewsNOW/Josh Hall)

By Josh Hall

deliberations begin Nov. 30

City council to debate budget ‘sensitive to economic times’

Nov 5, 2020 | 3:37 PM

Red Deer city council will consider a $219.2 million capital budget and $379.5 million operating budget for 2021 from Nov. 30-Dec. 4.

The budget was unveiled on Thursday with city officials saying it is sensitive to economic times, and that taxpayers can be confident dollars will be spent efficiently.

Earlier this year, council approved budget guidelines stipulating a zero per cent property tax increase for 2021 and 2022, and that utility rates not increase more than 0.5 per cent.

For the first time, council will consider a multi-year budget as opposed to one year at a time. What that means for next year’s budget (proposed at $97.5 million) is that there will be a chance for revisions and tweaks, but the process won’t be as lengthy as in 2020.

”I don’t think we had a mandate from the public to be able to increase taxes this year,” said Mayor Tara Veer. “I think we would have lost faith in the community if we had not shown recognition for the very real economic reality that our citizens and businesses are facing.”

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The City of Red Deer says restructuring this summer allowed $11 million to be chopped from the proposed 2021 operating budget. It’s also $11 million under last year’s operating budget, with approximately $1.3 million to be spent on COVID-19 response in 2021.

As for capital spending, a number of projects were moved to later in the ten-year capital plan in order to reduce spending over the next fiscal calendar. However, $26 million is still earmarked for paving over the next two years, and $153 million between now and 2030.

Significant work will continue in 2021 on the G.H. Dawe Community Centre expansion, including a second ice surface, increased accessibility, eastbound access directly onto 67 Street, and a new spray park. That project is funded by $7.3 million in long-term debt, $15.4 million from the feds, and $12.8 million from the province. It’s slated for completion in 2023.

Other capital projects proposed for 2021 include a fire training facility, Collicutt Centre fieldhouse roof remediation, a rail overpass on Highway 11A between Taylor Drive and Gaetz Avenue, and a new intersection at Taylor Drive and Hwy 11A. The latter two are part of the city’s growth north and into the Hazlett Lake area, and part of the North Highway Connector project.

The $22.4 million South East Sector Transportation System is prominent among the proposed projects for 2022. The City will also upgrade parking meters in year two of this budget.

Earlier this week, it was revealed that Minister of Municipal Affairs Tracy Allard sent a letter to municipalities indicating, “Alberta may not be able to sustain our current levels of infrastructure and operating spending.

Veer said Thursday that the contents of the letter were not surprising.

“Municipalities have been on notice in the past couple of years because we knew the province was changing its MSI formula,” she said. “In the last six months in particular, we knew the provincial government would be implementing a significant infrastructure program as part of their objectives to stabilize the provincial economy, but I think it was very clear that after that, we’d need to manage our capital expectations.”

Veer says The City’s request remains stable, long-term and predictable funding in order to craft a 10-year capital plan which suits the needs of Red Deerians.

The mayor also commented on 911 dispatch consolidation; she said it’s too early to say how it may impact the budget because there is cautious optimism the government could change its mind in allowing the Alberta Health Services-led switch. With the change-over anticipated by Jan. 4, 2021, she said The City has met with government officials and will continue to do so over the coming weeks on this matter.

In 2021, one of the City’s capital projects is upgrading its 911 communications centre, which will happen regardless of the dispatch decision.

Residents are encouraged to review the budgets and plans online and provide feedback through the guided online survey this year, from now until Nov. 18. You can also call The City of Red Deer at 403-342-8111.

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