Today, Council finished the multi-year budget and plan deliberations for both operating and capital as scheduled. The outcomes of the week-long deliberations include approved 2021 and 2022 Operating and Capital Budgets, as well as the 2023-2024 Operating Plan and 2023-2030 Capital Plan approved in principle.
“This is the first time we have not only done multi-year budgets, but also operating and capital in the same deliberation session,” said Mayor Tara Veer. “Administration worked hard to ensure the budgets and plans aligned with Council’s budget guidelines so we could streamline our decision making.”
During deliberations, Council approved the following budgets:
- 2021 Operating Budget: $379.3 million
- 2022 Operating Budget: $384.9 million
- 2021 Capital Budget: $218.7 million
- 2022 Capital Budget: $75.1 million
“The focus for our budgets and plans this year is to maintain and enhance our current infrastructure while ensuring we continue to provide the same level of service and programming Red Deerians have come to expect,” said Veer. “The financial impact to citizens also needed to be minimized; administration brought forward budgets and plans that met all of Council’s guidelines set earlier this year, including no increase to the municipal portion of property taxes and user fees for both 2021 and 2022.”
The full list of guidelines met include:
- Zero per cent tax increase: property owners whose property has an average change in assessed value will not see any increase to the city portion of their tax bills in 2021 or 2022
- 0.5 per cent capital contribution in the 2021 and 2022 Operating Budgets
- No more than a 0.5 per cent increase in utility rates for 2021 and 2022
- No increases in user fees or new fees in the 2021-2022 budgets
- Reserves (excluding offsite and parking reserves) will be in a positive balance
- The 2021-2022 capital budgets meet the approved Council Policy which limits debt to 75 per cent of the provincial debt limit
The operating plan for 2023 and 2024 outlines the expected tax supported operational needs based on current services and programs. The operating plan met Council budget guidelines set in June and reflect a 2.5% property tax increase in each of 2023 and 2024. The plan is approved in principle only at this point and does not mean there will be a 2.5% property tax increase in those years. Council will set the desired property tax increase for these years at the point in time 2023 multi-year budget guidelines are approved.
The $900 million 2023-2030 Capital Plan includes placeholder values for the funding that is expected to be required in each of the years. Approving the plans in principle allows for longer term planning to tailor projects to the changing needs of the community and to better manage finances.
For more information on the operating and capital budgets and plans, visit www.reddeer.ca/budget.
For more information, please contact:
The City of Red Deer