By rdnewsNOW staff

Budget 2026

Chamber encourages focus on fiscal discipline as city, council, weigh tax increases

Dec 8, 2025 | 2:52 PM

The Red Deer District Chamber is issuing a strong call for The City of Red Deer to prioritize aggressive cost-containment measures in the proposed 2026 budget.

This as city budget presentations and discussions get underway today.

While the Chamber says it commends the city’s commitment to financial reform, officials say the prospect of another significant property tax increase is unsustainable and jeopardizes Red Deer’s competitive standing and business viability.

The Chamber says it remains deeply concerned that the proposed property-tax increase presents a continued heavy burden on businesses, coming on the heels of last year’s substantial 10.35 per cent hike. Officials say this cumulative financial pressure threatens the operational sustainability of Red Deer businesses, which it says are already grappling with rising operating costs, labour shortages, and inflation.

Frank Creasey, Chamber CEO noted, “While we appreciate the city’s more disciplined approach to budgeting and the focus on core services, a 7.36 per cent tax increase remains a serious concern for Red Deer businesses. Sustained tax escalation limits their ability to hire, invest, and grow. The Chamber urges continued focus on operational efficiencies, service prioritization, and longterm financial reform to ensure Red Deer remains competitive and affordable.”

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The Need for Competitive Fiscal Discipline

The Chamber says the current proposed increase places Red Deer out of step with comparable Alberta municipalities, where tax stability is prioritized:

• In Lethbridge, their approved municipal property tax increase for 2024, 2025, and 2026 is set at a consistent 5.1 per cent per year.

• Medicine Hat council approved a property tax increase of 5.6 per cent in 2025 and a proposed 5.6 per cent in 2026.

The Chamber says a continued reliance on taxation to bridge budget gaps will only diminish Red Deer’s affordability and deter future investment.

Chamber officials say while they recognize pressures such as inflation, contractual obligations, slowed growth, and reduced transfers, compounding tax increases remain a concern.

The Chamber says their survey last year showed:

• 64% said large tax increases significantly raise operating costs;

• 36% would delay or cancel investments;

• 27% warned ongoing increases could lead to downsizing or closure.

Commending Financial Reform and Transparency

Chamber officials say they commend the city for adopting and beginning implementation of the Financial Roadmap: Transformation, Strategic Focus, and Future-Ready (July 2025).

The Chamber says this critical initiative sets the stage for genuine enhanced financial governance, long-term fiscal planning, and a systemic re-evaluation of how city services are delivered.

The Chamber says they support the city’s commitment to rebuilding reserves, including the planned $10M operating reserve contribution. Chamber officials say strong reserves are essential, but this work must occur alongside continued examination of service delivery efficiencies, workforce and administrative costs, partnership opportunities, asset divestiture options, and alternative revenue sources that reduce reliance on property taxes.

Furthermore, the Chamber says it applauds city administration for delivering on increased financial transparency, specifically demonstrated by the release of their first-ever City of Red Deer Financial Report Q3 2025 in November. Chamber officials say this report confirms that while careful fiscal management in 2025 is producing measurable improvements in expense control and reserve contributions, reserves still remain below required levels.

The Chamber says this reality highlights the importance of maintaining a sustained focus on long-term stability over short-term gains, some of which are attributable to timing factors like project deferrals.

Matt Wear, President, Red Deer District Chamber highlighted that “Red Deer businesses understand the financial pressures facing the city, but a 7.36 per cent tax increase still represents a significant burden in an already challenging economic environment. To maintain confidence, tax adjustments must be paired with clear evidence of internal efficiencies and modernized service delivery. Long-term sustainability cannot rely on property taxes alone, rather it must also look to outside investment into the city, which large tax increases tend to hinder growth.”

The Chamber says it supports the city’s focus on essential services and core infrastructure – transportation networks, predictable permitting, reliable utilities, and a safe, clean community.

Chamber officials say Budget 2026’s emphasis on lifecycle planning, maintaining existing assets, disciplined capital investment, and deferring non-essential projects aligns with business expectations. However, the currently proposed 7.36 per cent tax increase shows Red Deer’s financial pressures remain significant.

The Chamber says businesses expect continued efforts to identify efficiencies, modernize operations, and contain costs. As noted in its 2025 submission, the Chamber says a 3 per cent reduction in operating expenses seems both achievable and necessary.

Chamber officials say they remain committed to working with council and administration to ensure Red Deer’s long-term financial health supports a competitive business environment and a strong local economy.