Red Deer City Council took several major steps at its regular meeting Tuesday, including approving the 2025 property and business improvement area (BIA) tax rate bylaws and reviewing the city’s long-term approach to economic development.
Council received an update from the Ad Hoc Economic Development Committee, which was established in December 2024 to assess how Red Deer should organize and lead economic development in the years ahead.
“This work is important—economic development is a priority, and how we organize ourselves to lead it matters,” said Mike Olesen, General Manager of Growth and Finance. “The Committee has taken a thoughtful, disciplined approach grounded in evidence, best practices, and our local context to ensure their recommendations are well-informed and future-focused.”
The committee is considering two models for delivering economic development services: continuing within the City’s administration or creating an external, arm’s-length organization. The current direction is leaning toward the latter.
“This process has been both thorough and forward-looking,” said Peter Lacey, Chair of the Ad Hoc Economic Development Committee. “The Committee has focused on what structure will serve our community best—not just for today, but for years to come. We believe the right model will provide the space for innovation and agility, while still staying connected to the municipality.”
Before submitting its final report to council in June, the committee plans to gather additional input from businesses and residents. A public open house will be held May 6 from 2 to 4 p.m. at the Harvest Centre in Westerner Park.
Council also passed the 2025 property tax rate bylaw, which includes a 10.35 per cent increase for residential and non-residential properties, and a 6.49 per cent increase for multi-family properties. This follows council’s approval in December of a 10.5 per cent increase to the tax-funded portion of the City’s operating budget.
“Setting the municipal property tax rate is a key step in funding the services, infrastructure, and amenities that make Red Deer a vibrant and thriving community,” said Mayor Ken Johnston. “With a solid assessment base and attractive taxation policies we continue to support economic growth while maintaining high-quality services for our residents. Red Deer remains competitive, with per capita municipal property taxes 12% lower than the average and excellent value for those who choose to live, work, and invest here.”
For every $100,000 in residential assessed value, the increase will amount to about $7.74 more per month. Tax notices will be mailed or emailed on May 12, with payments due June 30. Property owners can register for monthly payments through the Tax Instalment Plan (TIP) by June 15.
Also approved was the 2025 BIA tax rate bylaw, which funds the work of the Downtown Business Association (DBA). Of the 376 businesses in the BIA, 126 will pay the minimum rate of $226—an increase of $14.05. The remaining 250 will see an average increase of 6.67 per cent. These funds support DBA programs that promote local businesses, events and beautification initiatives in the downtown core.
“Downtown is the vibrant heart of Red Deer, offering centrally located services, entertainment venues, and spaces where our community can come together and connect,” said Johnston. “The Downtown Business Association plays a vital role in helping our community achieve the vision outlined in the Downtown Activation Playbook and the City’s Strategic Plan. These funds are essential to sustaining momentum and strengthening DBA initiatives that benefit all Red Deerians.”
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