City council recap: May 20

Council received an update about the Electric Utility Governance Modernization project, accepting into the corporate record, a Business Plan for a Municipally Controlled Corporation.
A business plan and supporting information will be made public on May 22, 2025.
At this stage, The City is exploring the possibility of transitioning its electric utility to an MCC.
- The initial scoping study identified three options – divest, MCC and Department+ (enhanced municipal service delivery), and City Council provided direction to explore the possibility of transitioning to an MCC.
- This does not mean the other options are off the table, but that this particular phase of the process focuses on exploring development of an MCC, including but not limited to business planning, financial analysis and a regulatory review that presents a full picture of what it could mean for The City to transition to an MCC.
A public hearing will be held on June 23, 2025, to provide an opportunity for citizens and other interested parties to provide their feedback on the MCC prior to Council making a decision.
You can find out more on The City’s website at www.reddeer.ca.

Representative Appointments to Council Committees:

City Council approved the appointment of candidates for the River Bend Golf & Recreation Society Board, the Audit Committee, and the Policing Committee.

Audit Committee: Don Oszli and Karen Dilon have been appointed as representatives.
Riven Bend Golf & Recreation Committee: Adriane Cairns has been appointed as a new representative.
Candidates for the Policing Committee require a background check before they can be named. When that process is complete, the members will be publicly announced.

CONSENT AGENDA:

Zoning Bylaw Amendment to rezone 3802 47 Street (First Reading)

Council passed first reading of a request to rezone this parcel from R-M Residential Medium Density Zone to Direct Control Zone No. 35. If approved, the owner will be permitted to pursue the development of a house suite within the existing duplex.
Administration supports the amendment as the property meets the requirements for the development of a house suite and there is capacity in the neighbourhood for additional suites.

Red Deer Intermunicipal Development Plan (IDP)

The City of Red Deer and Red Deer County have developed a new Intermunicipal Development Plan (IDP) to guide future collaboration and regional growth.
Council approved first reading of Bylaw 3733/2025, which would replace the existing 18-year-old IDP with a new plan built on trust, mutual respect, and a shared vision.
A joint public hearing is scheduled for June 16, 2025, at 3 p.m. in the Red Deer County Council Chambers.

Intermunicipal Subdivision Development Appeal Board Bylaw

City Council approved first reading to adopt a new Intermunicipal Subdivision and Appeal Board Bylaw should the new Intermunicipal Development Plan (IDP) be adopted. The current Intermunicipal Subdivision and Appeal Board Bylaw has served The City of Red Deer and Red Deer County for 18-years, and IDP requires the bylaw be updated for alignment.

REPORTS:

Water Utility Council Governance Policy

City Council approved a new Water Governance Policy (GP-F-2.9) and updates to the existing Utility Governance Policy (GP-F-2.7).

While The City has already been exploring governance options for the electric utility, a similar but separate evaluation is needed for all utilities, including water. This decision marks an early and foundational step, allowing administration to begin preliminary work focused on water utility governance. Previously, The City had one broad utility policy. With the recent development of a standalone policy for the electric utility, it is now necessary to take the same approach for water. The approval of this new Water Governance Policy begins that process, setting the stage for future discussions about how the water utility is structured and governed.

In late 2021, The City undertook a Utility Governance and Business Model Review project with the aim of assessing if there is a better business model and/or governance model for some or all the utilities that will provide a higher benefit in the long-term to the citizens of Red Deer. A project scope and sequencing for the project was established, with the first phase focussing on The City’s Electric Utility Department.
One of the first steps completed for the Electric Utility project was to update existing policies and set guiding principles with Council to ensure clear direction and a framework for evaluating options.
The next step in the Utility Governance and Business Model Review project is to carry out the same policy review and updates for the Water Utility (including water and wastewater).
- Water Governance Policy (GP-F-2.9) sets new governance principles for the Water Utility.
- As part of today’s approval, the Utility Governance Policy (GP-F-2.7) was also amended to remove water and wastewater

2026 Budget Strategy (Tax Supported and Utilities)

Council debated a notice of motion put forward by Councillor Victor Doerksen on April 29, 2025. The motion was postponed to May 20 to allow for further time for review by Council and administration. Councillor Doerksen’s motion proposes further amendments to the 2026 budget strategy and approach.
After further amendments were made, Council passed a resolution that outlines the following principles:
- Tax Supported Budget Strategies – Principles:
  - Budget must be balanced without use of Operating Reserve Tax Supported reserves.
  - Budget expense increase should be limited to inflationary factors, plus 1%-2% of total Operating Budget Tax Supported to be applied to increasing the operating reserve account.
  - Windfall revenue (carbon tax relief, GIPOT, etc.) are to be used to build operating reserves and not used to support other areas of expenses.
  - Zero based budgeting will be used for in-depth review in select departments, to be identified by Council and may be referred to Audit Committee for review.
Capital Budget Strategies – Principles:
- All Capital commitments from past budgets are to be included in the Capital budget plan along with their known sources of funding.
- Capital expense reporting are to be reported against budgeted amounts.
Utility Budget Strategies – Principles:
- Use of debt should only be applied to improve infrastructure assets and sustainability of the infrastructure assets.
- Budget utility expenses for operating should be limited to Inflationary factors, including growth.

NOTICES OF MOTION:

Councillor Bruce Buruma read into the record, a notice of motion related to parking in downtown Red Deer, requesting administration provide City Council with

A consolidated financial statement of parking operations to support prudent, data-informed business decisions;
A report on key performance indicators and usage targets for downtown parking, informed by smart data, citizen feedback, and engagement with businesses;
Information on the provincial grant and contractual obligations to guide future decisions regarding the continuation, modification, or suspension of the Paid Parking System.

Through the notice of motion, Councillor Buruma also requests that an Ad Hoc Committee be established, with committee make up and a terms of reference approved by Council, and administrative support provided by City staff, to develop a Strategic Downtown Parking Plan that reflect business and citizen input and align with the broader interests and strategic direction of the City. The plan shall include recommendations that:

Enhance public accessibility and welcomes citizen and business engagement;
Promote and incentivize the use of downtown parking;
Prioritize ease of use and a seamless parking experience;
Review parking enforcement practices to balance compliance with a positive, ambassadorial approach to downtown visitors;
Optimize the use of public and private parking assets, including the Sorensen Station Parkade.

City Council will consider the motion on the June 9, 2025, Council meeting.

PUBLIC HEARINGS:

A Public Hearing was held regarding the two items listed below. The City received a total of three written submissions, with parking identified as the primary concern. City Council acknowledged this concern and approved the application, with the expectation that the applicant will comply with all applicable bylaws intended to address parking requirements.

Zoning Bylaw to rezone 170 Lancaster Drive (Second and Third Reading)

Following a public hearing, Council passed second and third reading for a request to rezone this parcel from R-D Residential Duplex Zone to Direct Control Zone No. 35.
With this approval, the owner is permitted to pursue the development of a house suite within the existing duplex.
Administration supported the request, which meets the requirements of the Zoning Bylaw.
The application is consistent with goals outlined in the 2023-2026 Strategic Plan and aligns with direction from Council for administration to prioritize housing applications.

Zoning Bylaw amendment to Lancaster South Neighbourhood Area Structure Plan (Second and Third Reading)

Following a public hearing, Council passed second and third reading of a proposed bylaw amendment to the Lancaster South Neighbourhood Area Structure Plan. The amendment was procedural to maintain consistency in zoning across statutory documents.

by The City of Red Deer

City council recap: May 20

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