The 2022 capital and operating budgets, with adjustments, were approved today by City Council, while continuing to meet the zero per cent tax increase guideline set in 2020. Council received a review of the already approved 2022 budgets as well as information about further additions driven by external influences.
“Council is pleased to continue to meet the guidelines set in 2020 to alleviate further pressures on our citizens. Being able to maintain our zero per cent tax increase for 2022 by pulling from reserves is the right decision while there is continued economic strain on our community,” said Mayor Ken Johnston. “We recognize the pressures COVID-19, the RCMP contract and Westerner Park funding has put on our current budget, as well as our future plans, but all of those expenses support the health and safety, social, culture and economic environments in our community.”
The 12 recommendations approved by Council through operating and capital budgets are driven by municipal, provincial and federal needs and requirements. The following are the total funds approved in additional items, as well as new 2022 budget amounts:
- Operating Budget
- $5.571M - total amount of additional approved items
- $388.594M – total 2022 Operating Budget following approvals
- Capital Budget
- $5.976M – total amount of additional approved items
- $103.497M – total 2022 Capital Budget following approvals
“Thankfully the difficult decisions made in the past put us in a good financial position going into the economic downturn and global pandemic. We were able to fund the additional items through our capital, utility and operating reserves this year, but as administration outlined, continuing to pull from our reserves in future years is not a sustainable practice,” said Mayor Johnston. “We will be looking to administration to come up with some creative ways to minimize the financial and service impacts to our citizens in the next round of multi-year budget process, while also replenishing our reserves so they are there to fund any unforeseen expenses in the coming years.”
In early 2022, Council will set its strategic priorities and budget guidelines to allow administration to develop the four-year budget that will go to Council for consideration in the fall of 2022. This will be the first four-year budget for The City of Red Deer.
“A budget is a snapshot in time, developed to meet Council’s short and long-term priorities and community needs. Adjustments were made today based on decisions from other levels of government and the necessary changes that were needed to deliver services and fund infrastructure that supports these services,” said Tara Lodewyk, Interim City Manager. “In the next round of budget decisions, we know we will have to respond to increased inflation and continually rising costs of service delivery in the context of the budget guidelines Council will set for us to work within.”
For more information on:
- The approved budgets, please refer to the attached FAQ (pdf)
- The 2022 budgets, please visit reddeer.ca/budget
- Property taxes, please visit reddeer.ca/tax.
For more information, please contact:
The City of Red Deer