The City of Red Deer has approved its 2025 operating budget.
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 per cent, which for the average household valued at $350,000 will mean a monthly increase of $22.75 per month for municipal services. The approved property tax increase will generate the $16.8 million needed to balance the budget.
“City Council’s approval of the operating budget is reflective of the current economic realities impacting our organization and our community,” said Mayor Ken Johnston. This tax increase of 10.5 per cent is absolutely necessary if we want to continue to provide the critical programs and services our citizens expect and need. Over the last number of days, City Council and administration have put forward recommendations and made decisions with rigour and careful consideration. Today we took a step forward in ensuring a financially sustainable future for our organization and our community,” said Mayor Johnston.
A 10.5 per cent municipal tax increase for 2025 does not mean that each individual property tax bill will change by that amount; the final amount will be determined once requisitions are provided to The City in the spring. Individual property taxes may be lower, higher, or about the same based on how an individual property is assessed. Properties that experience a change in value below the average will see an increase that is below the average, while properties that experience a change in value above the average change will see an increase that is above the average.
“This budget builds on months of administration and Council working together to bring forward cost savings and build a budget that continues to invest in our existing programs and services, but also ensures we remain competitive in our property tax rates,” said City Manager Tara Lodewyk. "While we had to make some difficult decisions throughout the week, I am pleased particularly in that we were able to protect our reserves and not use them to subsidize the tax rate as we have done in the past,” said Lodewyk.
On Monday, City Council approved the 2025 capital budget. Given The City’s overall financial situation, the capital budget is primarily focused on maintaining and preserving our core infrastructure.
Attachments: Council Resolutions: Tax Supported Operating Budget
To learn more about the budget, visit reddeer.ca/budget2025.
Council Resolutions: 2025 Tax Supported Operating Budget
Resolved that Council hereby agrees to remove BRO-1141 – Let’s Talk for $30,000 from the 2025 Corporate and Employee Services Budget.
- Resolved that Council hereby agrees to increase the amount in BRO 1148- Reduction in public engagement costs by $6,300 for a total reduction of $46,300 from the 2025 General Programs budget.
- Resolved that Council hereby directs Administration to further explore funding options to contribute to capital projects as part of the Community Services Master Plan work.
- Resolved that Council hereby agrees to reduce BRO 1038 -Major Event Sponsorship by $50,000 one-time funding in the 2025 Growth & Finance budget.
- Resolved that Council hereby agrees to increase the BR0 1074 - CSV Inflation Neighbourhood Activity Grants by $18,000 in the 2025 Community Services Division budget to allow for increased grant funding to community associations that manage Neighbourhood Activity Centres.
- Resolved that Council postpone consideration of the increasing the Community Services Budget to establish an operational washroom at Sorensen Station directing administration to return with a report by the end of Q1, 2025.
- Resolved that Council of The City of Red Deer directs Administration to increase the 2025 Community Services Budget by $715,046 by partially restoring service levels at the discretion of the City Manager related following BROs:
- BRO 1109 - Trees Turf Care and Trails
- BRO 1060 - Downtown Pageantry
- BRO 1062 - Provision of Public Services and Amenities
- BRO 1089 - Parks Planning
- Resolved that Council of the City of Red Deer hereby reduces BRO 1042 - Corporate Fleet Reserve Sustainability in the amount of $1,000,000 in the 2025 Community Services Division Budget.
- Resolved that Council of The City of Red Deer hereby directs Administration to reduce the 2025 Office of Mayor & Council budget by $120,000.
- Resolved that Council of The City of Red Deer hereby agrees to remove BRL 1036 – Enterprise Sponsorship for $245,282 and BRO 1084 Enterprise Sponsorship $12,000 for a total of $257,282 from the 2025 Community Services Budget.
- Resolved that Council of The City of Red Deer hereby removes BRL 1042 – Cost of Governance resulting in an increase of $19,100 to the 2025 Corporate and Employee Services Budget.
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