Today, administration officially handed over the proposed amended 2024 operating and capital budgets to City Council during a regular Council meeting.
This year’s budget process looks a little different than expected because Council originally approved a 2024 budget as part of the 2023/2024 budget process in November 2022. However, Administration had to take a step back and take a second look at the budget as The City is facing unprecedented challenges including increasing inflation, decreased revenue and less money from other levels and government.
Given these pressures, administration is presenting a budget amendment request of approximately $16 million dollars. In addition to utilizing the other funding sources available, this budget includes recommended scenarios for property tax increases above and beyond the previously approved 4.1 per cent. These scenarios range from 7-9 per cent. In relation to a typical home assessed at $345,000 in Red Deer, this would represent a tax increase of between $176 and $226 per year, or $14.67 and $18.83 per month.
“When Council approved the two-year budget in 2022, our economic reality was significantly different than it is now,” said Mayor Ken Johnston. “Like our counterparts across the province, we’re facing tremendous economic pressures that are making it increasingly difficult to balance costs and funding sources while also investing in the future of our community. At the same time, we also know these same economic pressures are affecting the household budgets of our citizens, so we need to be deliberate and prudent in our decisions.”
Citizens are invited to review the full budget documents are provide input at engage.reddeer.ca.
“Administration is proposing an amended budget that balances the need to maintain the services our citizens rely on and value, while also considering long-term sustainability,” said City Manager Tara Lodewyk. “We are being transparent about our current challenges and realities: our revenues are reduced, and our expenses have increased significantly. Continuing on the same path of using reserves to make up this difference in our budget is not sustainable. This budget signals a crucial change of course toward a strong financial foundation and focusing on the importance of enabling growth.”
Council will deliberate the amended budget January 23-26, 2024. Citizens can watch the livestream at meeting.reddeer.ca.
To learn more, see our FAQ, or visit reddeer.ca/budget.