The City's 2008 operating budget aims to increase sustainability

January 11, 2008

(Red Deer, Alberta) – Red Deer City Council will begin reviewing The City’s 2008 operating budget on Tuesday January 15 as the next steps in the 2008 budget process. The 2008 capital budget was approved on December 10, 2007.

“The overall goal of the 2008 operating budget is sustainability in the short, medium and long term,” said City Manager Craig Curtis. “Preservation of the Red Deer quality of life and the maintenance of current programs at current service levels while dealing with the increasing cost of growth were top of mind when the recommended service plans and budget for 2008 were developed.”

The operating budget has gone through an extensive review process since September 2007, and the proposed budget is based on initiatives in The City of Red Deer’s department service plans. Most initiatives previously came forward to Council for approval as part of previous plans, strategies and reports.

If City Council approves the budget as recommended, this will result in an average tax increase of 9.84 per cent. To a home with a 2007 tax year assessment of $300,000 and an average property assessment increase in 2008, this will equate to an average weekly increase of $2.79 or a daily increase of 39 cents towards the services used on a daily basis.

The top budget priorities focus on green initiatives, growth initiatives and good government initiatives. The budget is challenged by very high inflation costs especially in construction.

“There are challenges on the road ahead and we cannot continue to respond to growth and maintain service levels with existing resources – many of which are stretched beyond capacity,” Curtis continued. “The City is also struggling with the funding of new growth related facilities that are deferred for several years. This means a number of capital projects have to proceed at the same time, as well as a major carry over cost as a result of initiatives approved in 2007 but not fully funded in the 2007 budget.”

Some key budget initiatives include the conversion of all traffic lights to light-emitting diode lights (LED), growth of our park system, pavement rehabilitation program for city streets, eight new RCMP members, five new fire medics and municipal and community sustainability planning.

“Although it is easy to support those services that are seen by the public, there are also ‘behind the scenes’ services such as financial services, information technology, communications and human resources that need our support,” said Lorraine Poth, Financial Services Manager. “These departments are necessary in order to support other frontline departments, and they need to grow at the same rate.”

Over the next two weeks, service plans and related service plan funding requirements will be presented to City Council for their consideration. Council will debate the operating budget on January 23, 29 and 30.

Citizens can learn more about the 2008 budget by downloading 2008 Service Plans and Operating Budget: Building a sustainable Red Deer from the City’s website at www.reddeer.ca.

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For more information, please contact:

Craig Curtis                                        Lorraine Poth
City Manager                                      Financial Services Manager
The City of Red Deer                           The City of Red Deer
(403) 342-8156                                    (403) 342-8208