(rdnewsNOW file photo)

By Josh Hall

Holding the line

BUDGET: Council passes 0% tax increase for 2021, 2022

Dec 3, 2020 | 5:42 PM

City council approved Red Deer’s 2021 and 2022 operating budget and plan on Thursday.

The operating budgets, which total $379.3 million and $384.9 million, respectively, cover day to day costs of program delivery. They were given approval as presented last month.

Chief among the budget guidelines going in was to have a zero per cent property tax increase, which council stuck with.

There will also be no increases to user fees at recreation facilities or on transit, for example. A modest increase of no more than 0.5 per cent will be applied to utility rates.

“Our budget objective was to minimize the financial impacts of City operations to our citizens over the next two years, which is critical during a time when our citizens and businesses are experiencing increased strain due to the current economy and ongoing pandemic,” said Mayor Tara Veer. “The multi-year budget approved today allows administration to maintain levels of service to our citizens in the most efficient and effective way possible, while ensuring our infrastructure continues to be maintained and enhanced.”

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The multi-year operating plan for 2023 and 2024 was also approved.

“City administration does their best to estimate the expected service levels and related budget in future years, and to allow for transparent planning for our community,” Veer said. “Our operating plan reflects this; however, we are unable to guarantee funding from Provincial and Federal governments and changes in the local economy, which is why these plans are approved in principle.”

During debate on Thursday, council also voted on whether to carry on with a municipal census in 2021 at a cost of about $170,000. They voted in favour of doing it, though the mayor noted that COVID-19 could cause that to be scrapped if the pandemic isn’t yet under control by mid-year when the census is traditionally done.

City Manager Allan Seabrooke noted he is working on a comparator of council remuneration across the province. Council compensation in Red Deer is currently frozen until at least the end of the current term, which is set to end in October 2021.

On Friday, council will look to give final approval to the City’s 2022 capital budget. The 2021 capital budget was finalized on Wednesday.

That will include the potential approval of capital maintenance grants for Red Deer Airport worth $1.087 million and $2.037 million, respectively, in 2021 and 2022. That funding is also contingent on Red Deer County council approving the same amounts, as per the intermunicipal framework.

The 2021 capital budget (approved) was reduced by $512,000, while the 2022 capital budget has not yet faced any changes.

This year, the City of Red Deer opted to consider multi-year budgets for the first time. The benefits of doing it this way, according to the City, include a longer long term look at operations in order to find more innovative and efficient ways to provide municipal services. It also makes the review process easier, the City notes.