By Chad Krahn
Last week, City Council finalized the city budget, resulting in a property tax increase of 6.15 per cent.
Over the course of three days, council debated various aspects, amendments, and potential savings.
However, despite their efforts, they were unable to identify substantial savings much beyond reducing the already inflated byelection budget.
I am troubled by the Mayor’s comments at the end of the budget session, suggesting that it will be up to administration to find savings for the next budget cycle.
Council picked the lowest tax increase suggested by Administration, opting for a 6.15 per cent tax increase that will nearly deplete the operating reserves. More troubling is that this sets the stage for a 9.45 per cent tax increase in 2025.
The City is on track for a 36 per cent property tax increase over the next five years.
It appears that council expects administration to uncover additional cost savings, yet the budget documents indicate their belief that efficiencies have already been maximized.
This dynamic leaves council in a position to find necessary savings. If both sides rely on the other to do the heavy lifting, we risk repeating the same conversation next year.
While council did choose the option with the lowest proposed tax increase, noting the affordability crisis, it’s unlikely that the dual threat of inflation or affordability will diminish in the near future.
Bigger tax hikes will be required to replenish the operating reserves.
A new plan will be essential in the short term.
Red Deer must undergo a transformation in how it conducts business and embrace growth.
The challenge is that people generally don’t want drastic change, which is often what cuts at the council level entail.
However, a policy of committing to the pursuit of incremental improvement can change the culture of an organization — and it can change the fabric of the city.
As an example, last summer I watched a city employee mowing the lawn at City Hall in the rain.
I guarantee that staff member would have some ideas about how we could better schedule the maintenance differently so that it would be more efficient in the future. It sounds like a simple thing, to listen to the people who are on the ground, but it would result in real change.
And, while we make these simple changes, we also need to think big.
Growth must be relentlessly pursued for our city.
Red Deer is set to become — without exaggeration — one of the most strategically important cities in Western Canada. Across the region, various investments are being made that could radically change economic development for the whole region.
Red Deer Polytechnic is poised to make a significant impact, offering support to entrepreneurs in the manufacturing sector through its Centre for Innovation and Manufacturing - Technology Access Centre.
The expansion at the Red Deer Regional Airport could make Red Deer a crucial hub for logistics, distribution, and potentially affordable flights across Canada.
Additionally, the Central Alberta Economic Partnership is exploring a new highway from Saskatchewan Crossing to Golden, meaning Red Deer would have access directly to B.C. through Rocky Mountain House.
Combine this with the Province’s continuing investigation into high-speed rail between Calgary, Red Deer, and Edmonton, and the growth possibilities are endless.
Red Deer could be so much more!
Chad Krahn is a former candidate for Red Deer City Council.