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By rdnewsNOW Staff

WHERE DO YOU WANT YOUR TAXES TO GO?

City seeking public input on potential $19 million deficit for 2025 budget

Oct 4, 2024 | 12:29 PM

The City of Red Deer is asking residents for their input on the 2025 Operating Budget, which is currently facing a projected $17-19 million shortfall.

Citizens can visit engage.reddeer.ca to share their ideas or input through a variety of tools including a survey, idea wall, and a “Fund It” tool where they can demonstrate how they would distribute their tax dollar to different services.

“We understand the need to make challenging decisions, and we are committed to working with the community to find solutions that balance fiscal responsibility with service delivery,” said Mike Olesen, GM Growth and Finance. “This is an important opportunity for Red Deerians to have their voices heard and help shape the future of our City’s programs and services.”

In response to these financial pressures, city council has already identified 24 budget change concepts that may help bridge the gap. They may also utilize other tools such as exploring new funding sources, cost-saving measures, and potential tax adjustments.

Three-quarters of the City’s revenue stems from property taxes (38 per cent) and Utility User Fees (37 per cent). Council passed the Utilities Budget on October 1, which included increased Utility and Municipal Consent and Access Fees. As a result, the average household can expect a monthly bill increase of about a $15.32 in the new year.

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“Property taxes and utility user fees make up the majority of revenue in our budget,” said Olesen. “Our next step is to present the capital budget later this month, and then by November when the tax-supported operating budget is presented in November, we will have a full picture of our financial profile. At that time, one of the tools council will have at their disposal for balancing the budget is property tax adjustments.”

As an example, officials say that if the goal was to generate $17 million through tax, a typical house in Red Deer valued at $345,000 would see a potential monthly increase of $19.50-$26.00 per month.

A “What We Heard” report summarizing public input is expected to be shared in late October, providing an overview of the community’s feedback and insights gathered throughout the consultation process. This feedback will help guide city council’s decisions as they prepare for the November budget debate.

Residents are encouraged to visit the Budget 2025 page on Engage Red Deer for more information.

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