(rdnewsNOW file photo)

By Alessia Proietti

Contention: Broadband Internet project

Red Deer County council passes operating and capital budget on split vote

Dec 14, 2022 | 4:52 PM

Red Deer County council passed their latest operating and capital budgets on Tuesday in a 4-3 vote.

Councillors Christine Moore, Lonny Kennett and Dana Depalme did not agree with the 2023-25 Operating Budget and 2023-27 Capital Plan, voicing various concerns for the tax rate, broadband internet project and paving of the County office’s parking lot.

“This is my ninth budget as a councillor here and it’s the first time that I can’t support,” said Councillor Moore.

Termed as a “Back to Basics” theme, the operating budget in 2023 is $58,942,989 while the capital plan is $42,457,548, both decreasing in each of the following years.

The municipal tax rate increase will be 3.5 per cent, with administration noting an increase in extra policing costs and a reduction of grant funding from the Government of Alberta. While some councillors like Moore expressed concern for families struggling financially, other councillors like Brent Ramsay felt the increase was reasonable when comparing to other communities like Banff with a 10.26 per cent increase. Councillor Philip Massier added that the extra funds will maintain service levels.

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One item of particular contention amongst council was the capital initiative for Internet Infrastructure. Costing $14 million, the project is contingent on a $10 million federally-run Universal Broadband Funding grant. The County would then need to invest $4 million.

In 2020, the County began the project to help rural residents obtain affordable high-speed internet.

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Councillor Moore voiced against the project, suggesting it should be removed from the budget until the County can secure the grant and more customers than its current 645. She also said that many residents are opting for internet services from private companies.

Councillor Massier said the infrastructure was important for county residents that cannot afford to install from private companies and need internet for advanced smart-farming technologies. He also added the project is listed with an asterisk in the budget, meaning the item is not guaranteed and will be reviewed by council at a later date for further consideration.

The removal of the project from the budget would also not reduce the municipal tax rate as the funds are from reserves. Over three years, the County says $27.4 million will be drawn from the reserves, leaving an estimated $9 million by the end of 2025.

Mayor Jim Wood shared an anecdote that in his grandfather’s day, many rural residents did not have access to telephones because they were too expensive and private companies did not see the value in those markets. He said the County had to take steps to respond to resident requests for internet, which they use for home education among other reasons.

Councillor Moore also said that residents have shared their concerns with the $1.5 million allocated for the County office’s parking lot repairs and paving upgrades, questioning if there was a less expensive alternative. Council agreed to add an asterisk to the item to be reviewed by council for further consideration.

Although a split vote, Mayor Wood felt council had a healthy debate.

“We have various opinions but I was often hearing that they weren’t quite opposed to some of these things; they were just wanting to ensure that other things happened before we proceeded,” he said.

“This budget, in my opinion, is a very progressive budget. It’s a budget that in fact invests into our future and that it will make Red Deer County a better place to be.”

The County will have the opportunity to make further budget amendments in the springtime when land sales and assessment numbers are finalized. Director of Corporate Services, Heather Surkan says they are projected to increase next year.