(Advocate file photo).

(Advocate file photo).

Three options were presented for lowering Red Deer’s proposed 2020 tax rate below 2.49 per cent

Program/service reductions are among them

Some budgetary options are available to Red Deer city council to bring the 2020 tax increase lower than the proposed 2.5 per cent.

The city’s Chief Financial Officer Dean Krejci said, “What we are proposing to council is just a starting point.”

While “we did our best to reduce the tax impact on property owners through cost savings,” Krejci added there are three other options city councillors can consider to try to whittle down the tax increase further.

2020 proposed tax increase is nearly 2.5 per cent

The first and most obvious option for reducing the proposed tax increase is for council to consider various reductions in tax-supported programs and services.

The problem here is reaction from Red Deerians who don’t want their services cut.

Another cost-reduction option is NOT to transfer $500,000 into operating reserves. This is a fund that can be drawn from to help pay for annexations and other one-time major expenditures,

Krejci noted this would make it more challenging to address emerging issues in future.

A last option for reducing the proposed tax increase is NOT to transfer one per cent of the operating budget towards capital projects.

Krejci said stopping this practise wouldn’t affect the 2020 capital budget, which is already approved. In fact, the lack of a one per cent capital contribution would not have a noticeable impact on the city’s capital plans until 2024.

He added, this indicates council could consider stopping the one per cent transfer for the short term — or could consider transferring less than one per cent to capital projects.

Krejci predicted council’s deliberations next month will shift between how much money should allocated where, how much service should be provided?

Red Deer City Council

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

Just Posted

Kris Sturgess with Calgary Ghostbusters. (Photo from GoFundMe)
GoFundMe account salutes Red Deer prop builder

Kris Sturgess died unexpectedly April 28

Alberta recorded a single-day record of over 57,000 doses of COVID-19 vaccine administered. (Photo courtesy Alberta Health Services Twitter)
Alberta hits daily record of COVID-19 vaccine doses administered

Central zone has administered 111,735 doses of the COVID-19

Alberta reported an additional 1,980 cases of COVID-19 Friday. (NIAID-RML via AP)
Red Deer adds 37th death from COVID-19, active cases drop

Alberta Health identified an additional 1,980 cases of the virus province-wide

A rodeo south of Bowden drew a huge crowd on May 1 and 2, 2021. (Photo courtesy Mom’s Diner’s Facebook page)
FILE - A firefighter wears a mask as he drives his truck. THE CANADIAN PRESS/Jonathan Hayward, File
VIDEO: Flames rip through Edmonton-area seniors complex, but no fatalities

ST. ALBERT, Alta. — Fire has destroyed part of a retirement complex… Continue reading

Katie Telford is seen on a television before appearing as a witness before the House of Commons Defence committee in Ottawa, Friday May 7, 2021. THE CANADIAN PRESS/Adrian Wyld
Trudeau aide Katie Telford questions if she could’ve done more on military misconduct

Trudeau aide Katie Telford questions if she could’ve done more on military misconduct

Rona Ambrose is shown during an interview with The Canadian Press in Ottawa, Thursday, May 18, 2017. New judges will have to commit to take training in sexual assault law, thanks to a new law that received royal assent last night. THE CANADIAN PRESS/Fred Chartrand
Judges’ sexual assault training bill receives royal assent after clearing the Senate

Judges’ sexual assault training bill receives royal assent after clearing the Senate

Alberta Premier Jason Kenney arrives at the 2021 budget in Edmonton, Thursday, Feb. 25, 2021. Kenney is expected to announce this morning an arrangement allowing Alberta truckers to get vaccinated against COVID-19 in neighbouring American states. THE CANADIAN PRESS/Jason Franson
Alberta’s Kenney urges federal government to push U.S. for surplus COVID-19 vaccines

Alberta’s Kenney urges federal government to push U.S. for surplus COVID-19 vaccines

Dr. Brent Roussin, Manitoba chief public health officer, takes off his mask to speak during the province's latest COVID-19 update at the Manitoba legislature in Winnipeg on Friday, Oct. 30, 2020. THE CANADIAN PRESS/John Woods
Manitoba’s top doctor questioned in church challenge of COVID-19 restrictions

Manitoba’s top doctor questioned in church challenge of COVID-19 restrictions

People line up at a COVID-19 vaccination centre, Friday, April 23, 2021 in Deux-Montagnes, Que. Canada's two biggest provinces are continuing to ramp up COVID-19 vaccinations as they report lower hospitalization figures.THE CANADIAN PRESS/Ryan Remiorz
Manitoba, Nova Scotia cracking down amid surge in COVID-19 cases

Manitoba, Nova Scotia cracking down amid surge in COVID-19 cases

A man watches the financial numbers on the digital ticker tape at the TMX Group in Toronto's financial district on Friday, May 9, 2014. THE CANADIAN PRESS/Darren Calabrese
TSX up for 10th week with gain as weak jobs reports support continued easy money

TSX up for 10th week with gain as weak jobs reports support continued easy money

The Enbridge logo is shown at the company's annual meeting in Calgary on May 9, 2018. THE CANADIAN PRESS/Jeff McIntosh
Enbridge CEO warns of ‘bad things’ for shippers, consumers if Line 5 shut down

Enbridge CEO warns of ‘bad things’ for shippers, consumers if Line 5 shut down

Cenovus logo seen at the company's headquarters in Calgary, Alta., November 15, 2017. THE CANADIAN PRESS/Jeff McIntosh
Cenovus Energy reports $220M first-quarter profit compared with a loss a year ago

Cenovus Energy reports $220M first-quarter profit compared with a loss a year ago

Most Read