April 2017 News Archive

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2016 financial report shows spending control but a reduction in revenues

April 13, 2017 4:10 PM
(Red Deer, Alberta)

Year-end financial reporting and analysis found The City’s 2016 operations show appropriate control on expenses but a reduction in revenues due to the economy.

“The City continues to be in a sustainable financial position with the economic forecast showing a stabilizing economy with moderate growth for the next three years,” said City Manager Craig Curtis. “Overall, operating expenditures were below the budgeted amounts for 2016. For example, fleet expenditures were $5 million under budget and community services were $2 million under budget.”

Due to the slower economy, The City realized lower revenues in some self-supported areas like the electrical, water and sewer utilities and the land bank. As surpluses in these areas are used to support future capital growth needs, the reduction in revenue will delay this infrastructure until growth rates show the need. While revenues were not as high as budgeted in some areas, The City was still able to transfer money to reserves.

Each year, The City of Red Deer collects property taxes to help pay for infrastructure and the many City services citizens need and expect. These tax supported costs are balanced out with revenue generated by utilities such as water and garbage collection – enabling The City to minimize the increases citizens see on their property tax bills each year.

“The reduction in revenues for these self-supported areas will not impact the tax rate,” said Dean Krejci, Chief Financial Offer for The City of Red Deer. “Unfortunately, like many other businesses and industry in our province, the economic downturn means we’ve generated less revenue on our utility supported side. However, as this revenue is used to manage needs related to growth, the slow economy means this infrastructure requirement is reduced.”

Auditing and tax firm KPMG conducted the annual audit.

The 2016 Financial Statements will be presented to Council on Tuesday, April 18, 2017.

For more information, please contact:

Dean Krejci, CFO
The City of Red Deer                                 

Communications & Strategic Planning
The City of Red Deer


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