2023-2024 Capital and Operating Budgets

Administration presented the proposed 2023-2024 Budget to City Council during a regular City Council meeting on Monday, November 7.

Public had the opportunity to provide feedback to City Council from November 8 until November 18. View the proposed 2023-2024 Budget (pdf).

City Council will begin budget deliberations on November 28 through November 30 in City Council chambers, and also viewable online.

The City is facing unprecedented financial challenges stemming from a longer than anticipated economic slowdown, extraordinary inflation, coupled with the impact of COVID-19 recovery, provincial downloads and reduced and uncertain government grants.

This budget is all about living within our means today and looking to build our future. We are going to look after the great things we have and focus on the strategic priorities to build our future.

The budget recommended by administration is at 4.79 per cent or $6,757 million dollars for 2023 and 4.38 per cent or $6,525 million for 2024. For 2023, in relation to a typical home assessed at $345,000 in Red Deer, this would represent a property tax increase of $119.29 per year or $9.94 per month. This also equates to an average weekly increase of only $2.08 towards the services that Red Deerians use on a daily basis.

One-page summary of the 2023-2024 Budget (pdf)

Capital project highlight sheets:

Tax dollar breakdown

See how the municipal portion of your tax dollar would be spent, using the proposed 2023 budget:

Revenue Sources

In order to fund the budget as proposed by administration, The City relies on multiple revenue sources. Find the breakdown of each source here.

What is an operating budget?

The operating budget shows the day-to-day costs of delivering programs and services for the next year. These costs are similar to your everyday household expenses such as mortgage payments, utilities or groceries.

What is a capital budget?

The capital budget indicates the funds needed for a specific year of the 10-year capital planning period. It is how we pay for major projects such as reconstructing streets; building and improving public facilities such as recreation facilities, community centres, parks and fire halls; dealing with growth pressures such as new streets; and new initiatives. These costs are similar to adding an addition to your home this year.

How are capital and operating budgets funded?

See attached chart for a full breakdown of how we fund capital and operating projects.

2023-24 Budget Chart (pdf)

What direction did administration take to build the 2023-2024 budgets?

Recognizing the reality of today, The City had to find ways to reduce our budget asks to stay within guidelines to reach the tax increase based on Council direction given in March 2022.

There were nine guidelines approved by Council:

  • Property tax increase of 4.7% in 2023, and 4.3% in 2024, equating to about $6 million in additional revenues.
  • Capital amenities and growth contribution of 1% for 2023 and 2024 to help with building back our reserves.
  • User fees and charges to be reviewed and implemented in 2023 in compliance with Council policy.
  • One time funding from reserves in 2023 and 2024 of $750,000 per year to support Council’s Strategic Plan implementation.
  • Explore utilities revenue, and what would be required to achieve a utility dividend of $3 million in 2023 and 2024
  • Increase reserve levels
  • Change the Capital Contingency Policy to allow the City Manager to address new projects from a maximum of $50,000 per project and $200,000 a year.
  • Bring forward an operating contingency policy, like the Capital Contingency Policy.
  • Bring forward a tax supported operating reserve policy for emergent and urgent issues.