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Council to consider 2026 Utilities Budget next week

August 29, 2025 3:15 PM
(Red Deer, Alberta)

Next week, City Council will consider the proposed 2026 Utilities Budget, which sets operating and capital plans for The City’s self-funded utilities: Electric, Water, Wastewater, and Waste Management.

The proposed budget outlines how utility rates will be adjusted in 2026 to address rising operating costs, aging infrastructure, and long-term financial sustainability, while continuing to deliver safe, reliable, and environmentally responsible services.

Proposed 2026 rate changes for the average household include:

  • Electric Utility: +6% (about $3.85 more per month for 600 kWh use).
  • Water Utility - Water Treatment & Distribution: +5% (about $2.48 more per month for 17m³ use).
  • Wastewater Treatment & Collection: No change. Rates will be held at 2025 levels while a third-party review of financial and rate models is conducted.
  • Waste Management: Landfill +5.5%, Collection +5% (applies to Black and Green Carts; Blue Cart services are now funded under Extended Producer Responsibility legislation).

“These are essential services that every household and business in our community relies on every single day. The proposed budget ensures they remain safe, reliable, and affordable, while planning responsibly for the future,” said Sarah Tittemore, General Manager of Community Services.

To strengthen transparency and accountability, The City is launching a third-party review of utility financial and rate models, beginning with wastewater later in 2025, followed by water.

“This review will validate our rate models and ensure they are transparent, equitable, and sustainable. It’s about building confidence and trust, both with our residents and our regional partners,” said Tittemore.

The City also provides water and wastewater services to several regional commissions and municipalities in Central Alberta. Over the past 18 months, administration has worked closely with regional providers through meetings, reports, and data sharing. The third-party review will further support transparency and collaboration across the region.

Utilities are self-funded and not supported by property taxes. Every dollar collected from rates goes directly into maintaining and improving the systems that deliver these services.

If approved by Council in early September, updated utility bylaws will return to Council on September 15, 2025, for final rate approvals.

For more information, see FAQ Utilities Budget 2026 (pdf).

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