Red Deer District Chamber is calling on the city to slash expenses by three per cent to take some of the sting out of expected property tax increases.
“We believe a balanced approach is both reasonable and necessary," said chamber CEO Scott Robinson in a statement.
"By reducing operational expenses by three per cent, the city could save taxpayers approximately $9-10 million, which would, in turn, make any necessary tax increase more manageable this budget year.”
City administration recommended an 11.25 per cent tax hike as part of the 2025 draft budget, which will be debated by council from Nov. 18 to 22.
The proposed 2025 Operating Tax Supported budget is $512,371,612, and to balance the budget just over $18 million in changes is required. An 11.25 per cent tax increase would generate gross tax revenue of $18 million.
Administration said such a tax boost will help address past financial challenges and support a more forward-focused approach.
Robinson said the chamber has reviewed the city's budget closely and has concluded it is "essential" to cut expenses alongside property tax increases.
“The city of Red Deer faces a significant deficit, as revenues have fallen short of expenses over the past few years.
"While we agree that the city must address this imbalance and reduce its reliance on reserves and utility dividends to balance the budget, we believe that the full financial burden should not fall solely on taxpayers and property owners.”
Nearly 52 per cent of members agree the city needs to a hard look at its expenses and find alternative ways to reduce its deficit and 64 per cent said a double-digit tax increase would boost their operating costs significantly.
"The business community has been clear. A double-digit tax increase is not sustainable and would significantly impact the ability of some businesses to operate and thrive within the city."
