Today, City Council approved the 2026 Operating and Capital Budget, marking an important step in supporting Red Deer’s long-term financial sustainability and core community services.
Administration presented an Operating Budget of $484.5 million and a Capital Budget of $63.9 million, including a proposed property tax increase of 7.36 per cent. Budget deliberations began on December 8 with overview presentations from Administration, followed by an open Council discussion – a new approach that allowed Council to provide early feedback and outline the broad adjustments they wished to see.
On day two, Council debated the changes and ideas put forward, ultimately passing a series of resolutions and establishing a final municipal tax rate of 3.97 per cent. The revised Operating Budget comes in at $482.6 million and the Capital Budget at $63.9 million.
“On behalf of City Council, I want to extend my sincere thanks to Administration and to my Council colleagues for the hard work and thoughtful deliberation that brought us to an approved 2026 budget,” said Mayor Cindy Jefferies. “We recognize that affordability continues to be a real challenge for many in our community, and we worked diligently to arrive at a tax rate that is reasonable and responsible. This budget reflects the need to care for the infrastructure, assets, and amenities that Red Deerians rely on every day, while also ensuring we are planning wisely for our city’s future. Together, we are committed to building a resilient, sustainable community for generations to come.”
The approved municipal tax increase of 3.97 per cent represents an increase of approximately $29.24 per year or $2.44 per month for every $100,000 of assessed residential value for a single-family home. These tax dollars fund the core services, infrastructure, and community amenities residents rely on every day—including roads and utilities, public safety, parks, and recreation facilities—which help ensure Red Deer remains safe, vibrant, and well-maintained.
“With Council’s approval of the 2026 budget, we are continuing our steady progress toward long-term financial sustainability and organizational resilience,” said Tara Lodewyk, City Manager. “This budget reinforces the hard work undertaken over the past several years to rebuild our reserves, reduce financial risks, and strengthen our ability to deliver reliable services. It reflects a more stable path forward – one that moves us away from dramatic swings in tax increases and toward predictable, responsible planning for our community’s future.”
Key resolutions passed by Council include:
- Increase the vacancy and efficiency factor applied to salaries, wages, and benefits to identify $4 million in reductions. This approach accounts for natural vacancy-related savings within the organization and guides Administration to incorporate these efficiencies into the budget planning process.
- Establish ongoing annual funding of $250,000 for Tourism Red Deer to support major event attraction, with a requirement for annual reporting on outcomes aligned with the Red Deer Major Event Strategy & Destination Development Framework.
- Approve the Community Culture Development Fund (CCDF) allocation be increased by $150,000 to enhance community grant support, as amended.
- Approve a one-time $60,000 grant to the Central Alberta Crime Prevention Centre (CACPC) for the year 2026.
- Approve ongoing annual funding of $30,000 for Sunnybrook Farm, as amended.
- Increase service levels for Downtown and Capstone beautification at a total cost of $100,000.
- Agrees to postpone consideration of the sponsorship pilot program to end of Q2 2026 Council Meeting.
- Reduce the planned ORTS reserve contribution by $1.5 million, resulting in a revised planned contribution of $9 million for 2026.
Council also received the 2027–2037 Capital Plan as presented in the 2026 Capital Budget.
For more information, visit reddeer.ca/.Budget.