City council to look at ways of boosting revenues, expanding reserves
Council approved nine guidelines for administration to use while building the next round of multi-year budgets.
Administration developed the recommendations after reviewing the financial condition of the city, economic forecasts, and council input.
Besides setting 4.7 per cent and 4.3 per cent as the tax increase guidelines for the next two years, councillors also approved a one per cent capital growth contribution out of its operating budget for 2023 and 2024.
Council approved a review of user fees and charges in 2023, as well as one-time funding in 2023 and 2024 of $750,000 per year to support council’s strategic plan implementation.
Council decided to explore would be required to achieve a utility dividend of $3 million in 2023 and 2024 and utility strategies to increase revenues by as much as 8.4 per cent over two years (2023-2024).
Also, councillors pledged to increase reserves, and change the policies to allow the city manager to address new projects from a maximum of $50,000 per project and $200,000 a year.
And council decided to bring forward a tax supported operating reserve policy for emergent and urgent issues.
Related:
- City approves new tax increase guidelines
Over the past two years, the City of Red Deer was able to maintain a zero per cent increase in municipal property tax revenue. However, council was told the next multi-year budgets will require an increase in property tax and utility revenues as city costs are rising with inflation and there’s a need to maintain millions of dollars of municipal infrastructure.
Guidelines allow administration to recommend increases to the revenues that the city has control over (taxes, utilities, user fees and charges) to balance the expenditures required to maintain services and set the foundation for continued community success.
“We pride ourselves on providing excellent municipal services that Red Deerians have come to enjoy and expect, and we will continue to do this,” said interim city manager Tara Lodewyk.
Several councillors spoke of the good value Red Deerians get for their tax dollars, in terms of policing and ambulance services, road maintenance, water treatment and other utilities, and recreation and culture services.