Budget 2025

The City’s budget covers all the essential services that residents use each and every day. This includes everything from the roads you drive on, the street lights that come on at night, the recreation facilities we enjoy and emergency and municipal police to keep us safe and healthy.
Budget 2025 In View

The 2025 Operating and Capital budgets were approved in November 2024. 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 percent, which will generate the $16.8 million needed to balance the budget.

Budget decisions and outcomes

Throughout the budget debate, Council debated a number of change concepts brought forward by Administration through the service level review process, and other changes identified by Council members themselves – some of these decreased the budget, while others increased the budget.   

Some of the key changes include: 

  • $500,000 reduction in the organization’s corporate training, development and conference budget.
  • Reduction from $150,000 to $75,000 in the Capstone placemaking budget. 
  • Parks and Public Works: Council initially approved $1.6 million in ongoing service level reductions; however, further amendments were made to restore $715, 046, leaving $916,646 in ongoing service level reductions. 
    • $190,000 reduction on concrete repairs 
    • $100,000 reduction in downtown parks and pageantry
      $268,000 reduction in parks, turfs, trees and trails
    • $342,000 reduction in in provision of public facilities and amenities
  • Full cost recovery for Memorial Bench/Tree program. 
  • Increased rental and leasing rates for external facility operators. 
  • Reduction in Emergency Services overtime by $600,000 (dynamic staffing). 
  • Census will only be completed as directed by Council or required by legislation. 
  • Approved the transition from mobile photo radar to a traffic enforcement team of CPOs.
  • Approved $47,000 in ongoing operating funding for the Red Deer Symphony Orchestra from the Community Culture Development Fund.  

The City is moving forward with implementing many of these change concepts now and residents may start to see the impact of these changes. To ensure the community understands these changes and impacts, the information below highlights the changes that are currently being implemented.   

Budget Implementation

Parks and Public Works

Overview

To align with budgetary constraints while prioritizing essential services, The City of Red Deer is making strategic adjustments to services delivered by the Parks and Public Works department. These changes will result in an estimated $921,884 in ongoing service level reductions, affecting parks, public amenities, and maintenance programs.

Infrastructure & Maintenance

  • Concrete Repairs – 30% Reduction ($190K)
    • Fewer non-critical sidewalk and pathway repairs, leading to a growing backlog.
  • Parks & Public Spaces – $368K Reduction
    • Downtown Parks & Pageantry: Reduction in seasonal decorations (no hanging baskets, fewer pole decorations, limited holiday lighting).
    • Turf Maintenance:
      • Elimination of contracted mowing services.
      • No mowing of berms (front, back, and tops) and naturalization of some neighborhood green spaces.
      • No trimming services around trees, fences, fire hydrants, benches, and other infrastructure.
      • Delayed trail maintenance and reduced tree care resources.

    • Public Facilities & Amenities – $342,000 reduction
      • Overall reduction in maintenance across the Waskasoo Park Network (playgrounds, dog parks, picnic areas, and waste management).
      • Closure of the Mackenzie Trails North washroom to reduce costs.
      • Fewer outdoor rinks available and reduced operational hours for spray parks and fountains.
      • Longer response times for graffiti removal and general repairs.

Revenue Adjustments

  • To offset reductions, The City will implement fee increases in certain areas:
    • Cemetery memorial tree and bench programs service fees (+$11K).
    • Recreation facility rentals and admissions (+$136K), affecting facility bookings and programs.
Utilities

On October 1, 2024, City Council approved the 2025 Utilities Budget, which includes the 2025 operating and capital budgets for the electric utility, water utility and waste management utility. 

In developing the budget, administration focused on the following key areas: 

  • Setting rates to manage affordability and stability for customers. 
  • The long-term sustainability of all Utilities, while giving consideration for the maximized return on these community-owned assets. 
  • Investing appropriately in infrastructure and staffing resources to maintain the reliability, responsiveness and marketability of the business. 
  • Optimizing and improving returns to our owners (The City) to allow budget certainty and financial benefit. 

The average utility bill for a single-family home in Red Deer is $131.30. The average household (based on 17m3 usage and a medium black cart) will see an increase of approximately $9.00 per month from 2024. 

Rates can be viewed here.  

Other budget changes

Other key changes not related to change concepts: 

  • $50,000 reduction in Major Event Sponsorship funding from the Growth and Finance budget.  
  • Increased grant funding to community associations that manage Neighbourhood Activity Centres by $18,000. 
  • Council asked administration to bring forward a report by the end of Q1, 2025 on the possibility of establishing a washroom at Sorensen Station. Update: February 24 Council approved $450,000 from long-term debt for washrooms at Sorensen Station in 2025. 
  • Reduced Corporate Fleet Reserve Sustainability by $1,000,000 in the Community Services Division Budget.  
  • Reduce the Office of Mayor & Council budget by $120,000. 
  • In the capital budget, approved a reduction in Fleet Growth and enhanced replacements, which led to a cost savings in the operating budget in the amount of $613,230. 

Learn about the budget