The City's approved 2011 operating budget responds to the economic recovery

January 17, 2011

After eight days of deliberation, City Council has approved the 2011 operating budget with a recommended 3.98 per cent tax increase. The operating budget totals $263,089,288.

“This budget meets our goal of adjusting to the economic recovery,” said Mayor Morris Flewwelling. “The slower than anticipated economic recovery means we have to look at the programs and services we deliver as we manage the bottom line. The tax increase approved in the budget allows us to continue delivering quality services to Red Deerians.”

The City requires a 3.98 per cent increase in the overall municipal tax revenue to implement the approved budget. The new tax rate will be set later this spring. That tax rate will then be combined with the education tax rate to help determine how much property tax residents will pay. An assessed property value is multiplied by the property tax rate to determine a resident’s property tax bill.

“We heard from the community that this budget needed to be responsive to their desire to keep tax increases as low as possible during the economic recovery,” said Flewwelling. “The cost saving put forward by administration helped us keep the tax rate to a reasonable level and also provided the necessary funds for some of the new initiatives approved by Council.”

As part of the operating debate Council approved a number of cost saving and revenue generation initiatives including reducing the hours of operation of recreation centres on statutory holidays and low use days, eliminating landfill coupons, closing recreation centres on Sundays at 9 p.m. for programs that require admission services, closing low use snow bank rinks and not filling certain City vacancies until construction revenue increases. In addition to the cost savings, Council also approved the Mountain View County dispatch and Newell 9-1-1 Association dispatch contracts which will generate additional revenue for The City.

Some key budget initiatives include the RCMP member fee agreement – which includes the addition of three RCMP members – one time funding for snow removal on trails which will be evaluated as a component of the snow removal policy review, funding for child minding and dryland programming at the G.H. Dawe, Red Deer Public Library budget increase, increased snow removal service at bus stops, an increase to the snow and ice control program, transit fleet increase, purchasing and additional Action Bus, parks growth and crown paving.

“This was a tough budget to prepare for Council review,” said City Manager Craig Curtis. “The cost savings put forward to Council represent the need to look at the services we deliver and how we can respond to the needs of citizens to keep the tax increase as low as possible. Even with these reductions to the budget, The City will continue to deliver high quality services to residents.”

Citizens can find out more about the 2011 budget by visiting The City’s website at www.reddeer.ca.

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For more information see the attached backgrounder.

For more information, please contact:

Morris Flewwelling                     Craig Curtis                     Lorraine Poth
Mayor                                      City Manager                   Director of Corporate Services
The City of Red Deer                 The City of Red Deer        The City of Red Deer
403-342-8154                            403-342-8156                  403-342-8737