Red Deer 2017 draft budget includes 2.51 per cent tax increase

Freeze on fees such as Transit, Parks and Rec planned

Red Deer 2017 draft budget includes 2.51 per cent tax increase

“We have a lot of challenges,” City of Red Deer manager Craig Curtis said on Thursday when the 2017 draft operating budget documents were released.

The budget shows a property tax increase of $3.1 million (2.51 per cent). Before the pencil sharpening began, initial budget figures were close to a double-digit increase in taxes, he said.

Dean Krejci, the city’s Chief Financial Officer outlined the budget summary, which shows a total operating budget in 2017 projected at $357 million.

Of that, about $239 million is supported with tax and other revenue such licences and user fees. The rest comes from the city’s utilities component ($97 million) and self-supported operations ($21 million). Numbers have been rounded off.

The proposed budget breaks down as 1.29 per cent plus one per cent for capital projects, and amenities and growth, plus 0.22 per cent to cover the new carbon tax. The provincial tax is expected to cost the city $280,000 in 2017.

As it stands now, the impact of the draft budget would be about $50 per year on a home with an assessment value of $325,000.

This does not include changes to the educational portion of property taxes, which won’t be known until the province releases its budget in the spring.

Curtis said the city is seeing a significant drop in revenues from Transit, recreation, and building permit fees. Some projects and objectives will have to be slowed down but the city is focused on maintaining core services.

The economic slowdown in Alberta is mostly to blame for the tougher conditions the city is experiencing. An example of the impact is construction growth, which usually brings in about $3 million, is projected to be only $1.3 million in 2017.

Craig said a lot of citizens are struggling in this economy and the city needed to be cautious.

On that note the city intends to freeze some user fees for 2017, including those for Transit and recreation and parks facilities. The city also plans to increase its Fee Assistance Program for eligible residents.

Curtis noted that the province has decided to provide low-income transit pass funding to Edmonton and Calgary, but not to mid-sized cities such as Red Deer.

Mayor Tara Veer, on behalf of Alberta mid-sized cities, wrote to the provincial government last month expressing concern that they were excluded from the program.

City council begins budget deliberations on Jan. 10.

barr@reddeeradvcoate.com

Get local stories you won't find anywhere else right to your inbox.
Sign up here

Just Posted

École Secondaire Notre Dame High School Grade 12 students Lily Forsyth (left) and Allyne Simonot helped design the “Big Smile” burger. Throughout May, for every Big Smile burger sold $2 will be donated to the Smiles Thru Lindsey Foundation. (Photo contributed)
Red Deer students design burger to raise funds for mental health awareness

Cilantro and Chive donating $2 from every Big Smile burger to Smiles Thru Lindsey Foundation

Red Deer Regional Airport CEO Graham Ingham has ambitious plans for the airport. (Advocate file photo).
Red Deer Regional Airport revenues climb in 2020

Bringing in more business is the 2021 goal, says director

City council will have to wait longer to hear back from administration on possible alternative sites — if the homeless shelter is moved from Red Deer downtown. (Photo by LANA MICHELIN/Advocate staff).
Alternative sites for homeless shelter will be explored by the City of Red Deer

Council gave administration more time to return with a report

Quentin Lee Strawberry was found not guilty of second-degree murder in connection with stabbing death of Joseph Gallant in March 2019. (Photo from RCMP)
Updated: O’Chiese man found not guilty of 2019 stabbing death of Red Deer man

Quentin Strawberry found guilty of assaulting murdered man’s common-law partner

Vancouver Canucks’ Nils Hoglander (36) scores on Winnipeg Jets goaltender Laurent Brossoit (30) during first-period NHL action in Winnipeg on Monday May 10, 2021. THE CANADIAN PRESS/Fred Greenslade
Hoglander scores twice as Vancouver Canucks dump slumping Winnipeg Jets 3-1

Hoglander scores twice as Vancouver Canucks dump slumping Winnipeg Jets 3-1

Edmonton Oilers' Dominik Kahun (21) celebrates with teammate Connor McDavid (97) after scoring the third goal against Montreal Canadiens goaltender Jake Allen (34) during second-period NHL hockey action in Montreal, Monday, May 10, 2021. THE CANADIAN PRESS/Ryan Remiorz
Canadiens clinch playoff spot with single point, fall to McDavid and Oilers in OT

Canadiens clinch playoff spot with single point, fall to McDavid and Oilers in OT

Rory McIlroy tees off on the fourth hole during the fourth round of the Wells Fargo Championship golf tournament at Quail Hollow on Sunday, May 9, 2021, in Charlotte, N.C. (AP Photo/Jacob Kupferman)
McIlroy ends 18 months without winning at Quail Hollow

McIlroy ends 18 months without winning at Quail Hollow

Canada , left to right, lead Briane Meilleur, third Val Sweeting, skip Kerri Einarson, and second Shannon Birchard discuss strategy against Sweden in a qualification game at the Women's World Curling Championship in Calgary, Alta., Saturday, May 8, 2021. Both of Canada's teams were shut out of the medals, marking the first time ever that Canada did not reach the podium at either the men's or women's worlds in the same season. THE CANADIAN PRESS/Jeff McIntosh
Bubble Wrap: Fresh questions for Canada after medal shutout at curling worlds

Bubble Wrap: Fresh questions for Canada after medal shutout at curling worlds

Edmonton Oilers' Connor McDavid (97) celebrates his 100th point this season with Leon Draisaitl (29) against the Vancouver Canucks during second period NHL action in Edmonton on Saturday, May 8, 2021.THE CANADIAN PRESS/Jason Franson
Oilers plan to keep playing McDavid, Draisaitl as NHL regular season winds down

Oilers plan to keep playing McDavid, Draisaitl as NHL regular season winds down

Canada's Tyler Ardron, right, tries to block the kick by Italy's Callum Braley during the Rugby World Cup Pool B match in Fukuoka, western Japan, Thursday, Sept. 26, 2019.  THE CANADIAN PRESS/Kyodo News via AP
Canadian men to face Wales and England in July rugby test matches

Canadian men to face Wales and England in July rugby test matches

John Velazquez, right, rides Medina Spirit ahead of Florent Geroux aboard Mandaloun to win the 147th running of the Kentucky Derby at Churchill Downs, Saturday, May 1, 2021, in Louisville, Ky. THE CANADIAN PRESS/AP/Darron Cummings
Casse believes colleague Baffert deserves “due process” folowing positive test

Casse believes colleague Baffert deserves “due process” folowing positive test

Canada forward Liam Millar (23) moves the ball past Bermuda defender Eusebio Blankendal (2) during the second half of a World Cup 2022 Group B qualifying soccer match Thursday, March 25, 2021, in Orlando, Fla. THE CANADIAN PRESS/AP-John Raoux
Canadian men to play next two World Cup qualifying matches in the U.S.

Canadian men to play next two World Cup qualifying matches in the U.S.

Most Read