Red Deer City Council has approved changes to the Municipal Consent and Access Fee (MCAF) for water, wastewater and electric utilities and directed that 25 per cent of all MCAF revenue be transferred annually to the Capital Projects Reserve.
The Municipal Consent and Access Fee is charged through utility bills and compensates The City for the use of municipal land, rights-of-way and infrastructure by utility systems.
The approved change will increase the MCAF for water, wastewater and electric utilities from 15 per cent to 20 per cent. MCAF for waste management services will remain unchanged.
All revenue generated supports municipal infrastructure and service delivery needs. Under Council's direction, 25 per cent of all MCAF revenue will be dedicated to the Capital Projects Reserve to support future infrastructure renewal and replacement projects.
"Council recognizes that residents are facing affordability pressures and carefully considered the impact of this decision," said Mayor Cindy Jefferies. "The 25 per cent will help maintain and renew essential infrastructure, reduce future funding pressures, and support the long-term sustainability of community assets.”
The City continues to face increasing costs associated with maintaining and replacing infrastructure and supporting service delivery for a growing community. Council considered several options before approving the changes.
"This decision creates a stronger connection between the revenue collected through MCAF and investments in infrastructure renewal," said CFO Sam Mugford. "The dedicated contribution to the Capital Projects Reserve will help support long-term planning and future infrastructure replacement needs across the community."
Based on draft 2027 utilities budgets that will be released to the public September 10 and debated on September 29, Administration estimates the approved MCAF change will impact the average residential ratepayer by approximately $10.25 per month.
Final utility rates will be considered separately by Council Utility Rate Bylaw process. scheduled on October 27.
For more information about this year’s budget process, visit reddeer.ca/budget.
Frequently Asked Questions - MCAF changes (pdf)