The city’s 2017 proposed capital budget has been cut by $26 million, with some projects deferred, to adjust to the challenging economy and reduced growth in Red Deer.
On Wednesday, city administration tabled a $106.75-million budget instead of $133 million approved in principle last year.
The budget goes before city council on Nov. 22 and 23 for approval. Council will also consider a $1.27-billion Capital Plan for 2018-2026.
City manager Craig Curtis said the biggest project to be deferred is the North Highway Connector along 20th Avenue, which will ultimately include a new bridge across Red Deer River and one across the railway line along Hwy 11A.
Construction was scheduled to begin in 2019, but has now been postponed by about three years.
“Of course with the slower growth, the traffic projections are lower than they were as well,” said Curtis on Wednesday.
He said the connector will have a number of links into the city and a big piece of one link is the 67th Street/30th Avenue roundabout which is already complete, as well as servicing in embankments along the alignment.
While roads in the east and northeast were postponed, the first phase of development of the area south of Red Deer College was to move ahead and will join up to the new QEII/Gaetz Avenue interchange.
“That area has a fair amount of boxed commercial development and it also has residential as you move up the slope and around the wooded area.”
Curtis said it will significantly expand the city’s park system. The natural area has been acquired by the city based on a plan adopted by council in 2007.
He said slower development in the city means less funding which in part contributed to reductions to the capital budget. The city can’t put more tax dollars into projects than currently allocated because it would affect the operational budget and tax rates.
“We’ve been conservative in respecting that need of our community,” Curtis said.
Mayor Tara Veer said this is the first full year government is feeling the effects of the recession.
“I think that this budget moves this community forward while adjusting to the economic reality that we’re navigating through,” Veer said.
“There’s an expectation on council, and the community’s part, that we move forward on looking after our key infrastructure, moving forward in terms of preparing for future growth and also building quality of life in Red Deer. But we need to do that in a way that’s responsive to the provincial economy.”
She said one of government’s primary roles during economic recession is to bring stability to the local economy. Without the games, the city would not be seeing the construction of the Gary W. Harris Canada Games Centre at RDC, runway extension at Red Deer Airport, the QEII interchange, and other infrastructure upgrades in the community.
“When you look at the Canada Winter Games in and of itself and the economic spinoff that’s had for us, it’s brought stability for us at an economic time when we needed it the most,” Veer said.
Curtis said a lot of the funding for projects related to the Winter Games came through generous contributions and from the provincial and the federal governments.
“Those facilities all under construction generate jobs in this community, they generate activity, and they generate excitement,” Curtis said.
Red Deerians can review the budget and offer feedback to council. Feedback can be provided by e-mail to legislativeservices@reddeer.ca or in writing at City Hall., Collicutt Centre, Recreation Centre, Red Deer Public Library Downtown Branch, Timberlands Branch and G.H. Dawe Branch.
Copies of the budget are available at those locations or online at www.reddeer.ca/budget.
The deadline to submit feedback is 4:30 p.m. on Nov. 16.
szielinski@www.reddeeradvocate.com