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December 5, 2008
(Red Deer, Alberta) –On Monday, December 8, Red Deer City Council will review The City’s 2009-2018 capital plan.The City of Red Deer will present a capital budget for 2009 totaling $499 million along with a 10 year plan.
“This long-term planning, which we began last year, provides us the opportunity to phase projects over longer terms to spread the tax impact of the costs of financing over the period of the capital plan,” said City Manager Craig Curtis.
As we look forward into 2009 and beyond, we see a year not unlike some of the years past. We are still dealing with the effects of growth, rising inflation and construction costs while trying to maintain service levels and plan for a future that is uncertain and unstable. We need to find the right balance. The 2009-2018 capital plan clearly outlines significant capital needs, identifies sources for funding, and highlights infrastructure challenges facing The City. Capital expenditures are made to fund new infrastructure or improve infrastructure, such as major equipment, buildings, community facilities and roads.
The capital plan for the next 10 years totals almost $1,743 million based on current projections. During budget discussions this year, Council will consider approval of both current and multi-year capital projects totaling $499 million. The largest capital project is the North Highway Connector project at approximately $134 million. Our capital plan has been based on the assumption that the North Highway Connector project will be provincially funded and that the project cannot be completed without this funding.
“The 2009-2018 capital plan reflects the demands made on our city and infrastructure,” said Lorraine Poth, Director of Corporate Services. “Council will look at how we address these demands and challenges while building a vibrant and sustainable Red Deer.”
The 10 year plan projections are intended as estimated placeholders and planning tools which show future need. A project’s inclusion in the 10 year capital plan doesn’t mean that it is going ahead, it simply means that we are talking about it, planning for it, and considering financing options. The only projects actually approved by Council are those planned for 2009 and multi-year projects beginning in 2009 or multi-year projects in need of additional funding
Needs such as new equipment and buildings to support police and emergency services, expanding roadways and bridges, extending services and upgrading infrastructure are just a few of the demands accompanying Red Deer’s growth.
When reviewing the 2009 capital budget for approval, Council will consider the expected project costs and the cost of deferral. Council will take into account the total 10 year capital plan rather than just the 2009 capital budget to help ensure debt and other capital financing is available in the future, and that the operating budget is not unreasonably impacted by debt-servicing and increased operation costs of new facilities.
“The sheer magnitude of The City’s capital program means it’s important for Council to balance Red Deer’s immediate capital projects with future community needs,” said Poth.
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For more information see the attached  Q&A document.
For more information, please contact:
Craig Curtis Lorraine Poth Dean Krejci
City Manager Director of Corporate Services Financial Services Manager
The City of Red Deer The City of Red Deer The City of Red Deer
403-342-8156 403-342-8737 403-342-8204
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