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Tough Budget

City council approves trimmed down budget for DBA

Dec 11, 2020 | 11:24 AM

Red Deer city council has approved the Downtown Business Association’s (DBA) budget for 2021.

During their regular meeting on Monday, council learned more details of the organization’s financial status for the upcoming year and heard from executive director Amanda Gould that it’s “not a business as usual budget.”

“We have laid-off one member of staff, which as you know, the DBA is a very small team and that equates to 25 per cent of the team,” said Gould, “and we’ve reduced hours by 20 per cent for the remaining three staff including myself. Basically we’ll be operating a four day week beginning January 2021.”

Additionally, the DBA has retired some programs voted on in a recent business community survey, deemed no longer useful.

Gould further pointed out that the DBA’s 2021 budget reflects current best practices in the not-for-profit sector.

“Operations were running at only 31 per cent of the total budget which holds within best practices for charities and within the range of Red Deer non-profits,” she explained.

“All of this has allowed us to maintain delivery of the key projects. That’s the Façade and Crime Prevention grants that we do, the Ross Street Patio program, the Farmer’s Market, the Adopt a Planter program, and Red Deer Lights the Night.”

According to DBA officials, the Business Improvement Area (BIA) levy is $135,000 less than it was in 2020. This is said to cover the $95,000 loss of provincial levy payments that have been historically paid by the provincial buildings located in the BIA.

In addition, due to the COVID-19 pandemic, the DBA is anticipating up to a $40,000 reduction in 2020 levy revenue from businesses unable to make the payment. Instead of adding this $40,000 on to the 2021 budget to cover expenses in 2020, the DBA has saved through staff lay-offs. With a reduction of this size, comes a reduction in costs.

Therefore, as a direct result of the above actions and despite a 25 per cent reduction in levy revenue, the DBA’s budget will have no increases year over year, so the levy will remain at the 2020 rate.

Councillor Lawrence Lee hoped to see the DBA take steps to showcase the value of its membership moving forward.

“The only way the DBA improves from this sort of budget it’s presenting us with, is to increase its membership, to increase the number of businesses coming into our downtown,” said Lee. “The programs are the lifeblood of how the downtown will come through these crazy times and that’s by showing businesses, attracting businesses into the downtown and letting them know that the programs that are being offered by DBA are beneficial to them in the Business Improvement Zone.”

Councillor Dianne Wyntjes noted the DBA’s 2021 budget highlights the strong need for supporting downtown.

“As we look back over the year, now we have finally a winter patio that I hope will have some additional attractions,” suggested Wyntjes. “Certainly a shout out for our downtown and for our citizens to check it out.”

As it relates to events, Councillor Ken Johnston, a DBA board member, suggested there are many positives to acknowledge.

“We certainly see some strong leadership and some strong traction on the Farmer’s Market downtown, the Patio and now the Winter Patio that exists downtown,” said Johnston. “And the identity strategy that continues to unfold in the downtown and the number of new board members this year necessitated an election, so there was an oversubscription to the amount of vacancies, which again to me, reflects organic growth and a commitment in the downtown to succeed.”