The 2025 Operating and Capital budgets were approved in November 2024. Following a service level review in September that identified $3.4 million in cost savings, administration put forward a proposed 2025 Operating Tax Supported budget of $512,371,612, with just over $18 million in changes required to balance the budget. Through a series and amendments to the budget, Council adjusted this amount to $16,811,822.

Council approved a municipal tax increase of 10.50 percent, which will generate the $16.8 million needed to balance the budget.

Budget decisions and outcomes

Throughout the budget debate, Council debated a number of change concepts brought forward by Administration through the service level review process, and other changes identified by Council members themselves – some of these decreased the budget, while others increased the budget.   

Some of the key changes include: 

• $500,000 reduction in the organization’s corporate training, development and conference budget.
  
• Reduction from $150,000 to $75,000 in the Capstone placemaking budget. 
  
• Parks and Public Works: Council initially approved $1.6 million in ongoing service level reductions; however, further amendments were made to restore $715, 046, leaving $916,646 in ongoing service level reductions. 
  
  • $190,000 reduction on concrete repairs 
  • $100,000 reduction in downtown parks and pageantry
    $268,000 reduction in parks, turfs, trees and trails (see update)
  • $342,000 reduction in in provision of public facilities and amenities
• Full cost recovery for Memorial Bench/Tree program. 
• Increased rental and leasing rates for external facility operators. 
• Reduction in Emergency Services overtime by $600,000 (dynamic staffing). 
• Census will only be completed as directed by Council or required by legislation. 
• Approved the transition from mobile photo radar to a traffic enforcement team of CPOs.
• Approved $47,000 in ongoing operating funding for the Red Deer Symphony Orchestra from the Community Culture Development Fund.  

The City is moving forward with implementing many of these change concepts now and residents may start to see the impact of these changes. To ensure the community understands these changes and impacts, the information below highlights the changes that are currently being implemented.   

Other budget changes

Other key changes not related to change concepts: 

• $50,000 reduction in Major Event Sponsorship funding from the Growth and Finance budget.  
• Increased grant funding to community associations that manage Neighbourhood Activity Centres by $18,000. 
• Council asked administration to bring forward a report by the end of Q1, 2025 on the possibility of establishing a washroom at Sorensen Station. Update: February 24 Council approved $450,000 from long-term debt for washrooms at Sorensen Station in 2025. 
• Reduced Corporate Fleet Reserve Sustainability by $1,000,000 in the Community Services Division Budget.  
• Reduce the Office of Mayor & Council budget by $120,000. 
• In the capital budget, approved a reduction in Fleet Growth and enhanced replacements, which led to a cost savings in the operating budget in the amount of $613,230. 

Learn about the budget