(rdnewsNOW/Sheldon Spackman)

By Alessia Proietti

Six day deliberations

City of Red Deer and council finalize budget with lowered municipal tax increase

Dec 5, 2022 | 5:37 PM

After six days of deliberations, Red Deer city council finalized the 2023-24 Capital and Operating Budgets on Monday with a 4.61 per cent municipal tax increase in 2023 and 4.12 per cent in 2024.

In relation to a typical home assessed at $345,000 in Red Deer, this would equal a property tax increase of $114.81 per year, $9.57 per month, or an average weekly increase of $2.21 towards City-run services.

The approved increase in 2023 equates to an additional $6,501,749 in municipal tax revenue and an additional $6,125,835 in 2024 for a total of $12,627,586 over two years.

“This year we entered into budget deliberations with a new process, and while there were some growing pains, as there always is with a new process, I am so proud of city council for persevering and making amendments in recognition of our community,” said Mayor Ken Johnston. “I also want to thank our administration who worked hard to ensure a balanced budget was presented in alignment with council’s budget guidelines so we could streamline our decision making, and we are confident we landed in a place of balance.”

Budget deliberations began with a proposed tax increase of 4.79 and 4.38 per cent in 2023 and 2024, respectively.

Year of growth

Year in Review: Red Deer Polytechnic looks back on exciting year

14h ago

FIVE-YEAR INVESTIGATION

Sylvan Laker sentenced to eight years plus restitution in $2.6M fraud case

15h ago

Six Counts

Impaired driving related charges laid in fatal BC crash that killed Good Samaritan from Red Deer

15h ago

Following increased funding for Red Deer Emergency Services, the municipal tax rate had increased to 5.17 per cent for 2023.

READ MORE:

Red Deer operating and capital budgets released; 4.79 per cent property tax increase proposed

Red Deer city council pushes for 14 staff increases in Emergency Services

Councillor Kraymer Barnstable proposed amending the operating budget to increase a one-time special dividend from the Electric Power Utility reserve to create a $800,000 revenue for the City each in 2023 and 2024 to lower resident tax rates.

After factoring in the decision, the reserve would sit at $16,088,548 for 2023. The City’s Utilities Manager Jim Jorgensen said the reserves are used for capital infrastructure emergencies to keep utilities functioning properly.

Council unanimously approved the motion, except for Councillor Lawrence Lee who was absent.

Councillor Vesna Higham also originally proposed an amendment to reduce the 2023 tax supported expenditures by $2 million to reduce the municipal tax increase. However, following the reduction proposed by Councillor Barnstable, she amended that reduction to $500,000, spread equitably across the organization.

Administration voiced against this request, saying already reduced service levels would decrease further and they would need until mid-January to finalize the budget. As a result, the postponement would have a negative financial impact on the collection of utilities and other fee increases. Councillor Higham therefore withdrew the motion.

The City confirmed a 4.61 per cent municipal tax increase for 2023 does not mean that each individual property tax bill will change by that amount; the final amount will be determined once requisitions are provided to The City next spring. They said individual property taxes may be lower, higher, or about the same based on how an individual property is assessed. Properties that experience a change in value below the average should expect to see an increase that is below the average, while properties that experience a change in value above the average change should see an increase that is above the average, they say.

“While city council recognizes any increase in costs impact our residents, the approved increase is needed to keep the services we rely on each day running,” said Mayor Johnston.

The City’s budget covers all essential services residents use daily like road maintenance and streetlights, recreation facilities, emergency services and municipal police.

“Administration proposed this budget to council in appreciation of the great community we live in, recognizing where we are at today, with a focus on planning for a financially sustainable future,” said City Manager Tara Lodewyk. “This budget invests our resources towards maintaining the infrastructure and the things Red Deerians rely on while recognizing we are all feeling the same impacts of inflation in our homes and businesses.”

Some of the highlights of the budget include:

• Funding towards the revitalization of Centennial Plaza Park
• Funding to explore an Indigenous Cultures Centre
• A review of the Snow & Ice Control policy in 2023
• Long-range financial plan and services review
• Increases to several fees and charges, like recreation, transit and utilities (implementation late 2023)
• Changes to Community Grant Funding, by adding specific one-time funding for Central Alberta Crime Prevention and increased one-time funding towards Sport and Recreation objectives
• A review of The City’s debt limit policy

READ MORE:

Central Alberta Crime Prevention Centre and Sports and Recreation earn added funds in budget

CPR bridge repair and Centennial Plaza Park redevelopment among proposed in Red Deer’s capital budget

BUDGET: recreation facilities see fractional proposed increases

“The 2023 and 2024 Budgets are about ensuring City services are here, safe and available to all our residents. To ensure our City is open for business, and ready for visitors,” said Mayor Johnston. “What residents don’t really see in this budget is a bunch of new and shiny things – there are no new amenities being planned, there are no big shifts in services – it is the basic costs of doing business and delivering services to our community. Council and I are confident that 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.”

For more information on the 2023-2024 Budgets, visit www.reddeer.ca/budget