By Sheldon Spackman

Proposed 2019 operating budget focuses on community safety, sustainability

Dec 12, 2018 | 2:31 PM

Maintaining the vision while managing expectations is the goal behind next year’s operating budget for the City of Red Deer.

City Manager Craig Curtis says the recommended operating budget for 2019 has a focus on community safety, consideration of the current state of growth, the economy and efforts to maintain the quality of life for Red Deerians.

Curtis says city council’s direction is for property taxes to not exceed a 2.5 per cent increase in 2019, but still include a one per cent capital contribution for amenity growth.

“The biggest challenge is obviously the revenue,” states Curtis. “When we started, we were 12.5 per cent which hadn’t yet taken into account any tax increase. Looking at every single area of operation, we asked each department to come up with cost savings, so you’ll see areas where we’ve generated new revenue or existing revenue.”

Curtis describes this operating budget as the toughest he’s worked on since the 1980’s.

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“I think both levels of government, whether it’s the existing government or a new government, they’re going to have to deal with the provincial deficit and that speaks to challenges ahead,” warns Curtis. “The MSI funding is a huge risk to us and the fact that Edmonton and Calgary have agreed to about a 30-40 per cent reduction in future years which will be tied to the provincial economy. The disappointing factor is that the province has separated us mid-sized cities and rural areas from the big cities in terms of funding and we’ve always advocated and worked together.” 

Curtis notes crime and community safety are top priorities moving forward, with 10 new RCMP officers hired over the past year and five more recommended for 2020.

“This allows us to get ahead of the game and actually say to the force, ‘Can you recruit ahead of time so they can begin in January?’” he explains.

Curtis says the proposed budget also highlights the need for social amenities such as a 24-7 shelter with wrap-around services.

“We need a shelter desperately, we need more warming facilities during the winter and we need to have somewhere for the people who are occupying rough sleeper camps to go. We do have some shelter capacity but it is clearly not adequate and we do not have the kind of treatment facilities that council has advocated for.”

In looking at potential budget savings, Curtis says some temporary and vacant City positions have been recommended for reductions, along with service cuts in Sunday transit service and some operating hours changes at recreation facilities.

However, Curtis says he’s excited about the YMCA working in collaboration with The City at the North Red Deer Community Centre starting in 2019, as well as increased funding recommended for arts and culture groups to the tune of $130,000 in each of the next two years.

“It’s a 33 per cent increase and we’re hoping those groups like the symphony that are having sustainability issues are successful in that fund, which is actually allocated at arms-length from The City,” states Curtis. “That program had a cap on it of $30,000 and we’re suggesting that cap needs to be lifted. Then we’re suggesting that the program be reviewed and potentially increased on a permanent basis.”

Mayor Tara Veer anticipates the biggest impact on next year’s operating budget to be the opening of new facilities approved in previous years, including the North Side Community Centre and downtown Cultural Centre.

“We’re acutely aware of the fact that our economy continues to suffer and as much as we’d like to do more and certainly aspire to do more, we are so significantly aware of the financial recession. We have done everything possible to temper the financial impacts on households and businesses,” said Veer.

Chief Financial Officer Dean Krejci says the recommended budget has an increase of $3.33 million in total spending that would result in a 2.5 per cent tax increase in the municipal portion of a property tax bill.

As such, a home valued at $325,000 which experienced an average assessment value change for the 2019 tax year would see an approximately $54 increase in the municipal portion of their taxes. This does not include any changes to the education portion of property taxes as these won’t be known until the provincial budget is released next spring.

The $121 million 2019 Capital Budget was approved on November 20.

Administration will present the recommended Operating Budget to City Council for consideration starting on January 8 and debate will continue on January 9 through 11. Dates are also held for January 14 through 18 if required.

As part of the 2019 Operating Budget process, citizens have the opportunity to review the budget and provide feedback to council before it is considered.

Feedback can be provided by email to feedback@reddeer.ca or in writing at City Hall, Collicutt Centre, Red Deer Public Library Downtown Branch, Timberlands Branch and G.H. Dawe Community Centre Branch. Copies of the budget are available at those locations, and will be online at reddeer.ca/budget starting December 13.

The deadline to submit feedback is 4:30 p.m. on Friday, December 21.