Today marks the completion of the 2025 budget meetings with the approval of the 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 percent, which for the average household valued at $350,000 will mean a monthly increase of $22.75 per month for the critical municipal services Red Deerians rely on every day. 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.
The City of Red Deer’s budget covers the essential services residents use every day. This includes everything from the roads we drive on, the water we drink, the streetlights that guide our way, the recreation facilities we enjoy, and emergency services and municipal police who keep us safe and healthy.
"I am proud of the work completed by City Council and administration today. Our teams care about this community, and you could feel that emotion from everybody in the room as we navigated a difficult budget,” said Mayor Ken Johnston.
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: 2025 Tax Supported Operating Budget Council Resolutions (pdf)
To learn more about the budget, visit reddeer.ca/budget2025.