Red Deer County will aim to keep tax increases around the rate of inflation in its $35.5-million 2012 operating budget.
A 3.5 per cent tax rate is built into the draft budget that was presented to county council on Tuesday.
The budget will now go to the public for feedback before it comes back to council for approval in two weeks.
Actual increases on residents’ tax bills will depend on whether their property assessments went up or down.
“We’re anticipating that we’re trying to be at the inflation rate,” said Mayor Jim Wood. “I believe that a municipality must try to make sure we try to keep up with inflation or we’ll go negative with our services.
“We’re trying to provide at least equal or better services than we did last year. We’re not seeing any significant program changes but we’re trying to provide the similar services.”
The operating budget is actually down slightly from last year’s $35.9 million.
Heather Gray, the county’s director of corporate services, said that the county is in solid financial shape and most departments are coming in under budget as the year end approaches.
There are no additions planned to the county’s 79 full-time permanent staff.
On the capital budget side, a significant boost is coming in 2012 — $38.1 million, up from $26.4 million this year.
“The additional $12 million being carried forward is specifically aimed at completing road and drainage projects we were unable to finish in 2011 due to the wet weather that lasted literally from spring to fall,” said Gray.
“This is really a big year for some of our infrastructure, especially bridges.”
Wood said that many of the county’s bridges are aging and over the last few years, the county has been putting aside money to undertake needed maintenance. “We need to tackle them and make sure they are safe enough to drive on.”
About $7 million will be spent on bridge repairs in 2012. The county also plans to spend $6 million on paving and $18 million in other road work.
Gray said the county’s reserves are also in good shape, with about $32.8 million salted away. The county wants to have at least a year’s worth of municipal tax revenues in reserves. The county’s 2012 tax revenues are estimated at $30.8 million.
Councillor Dave Hoar said the budget is close to being final but can be tweaked if necessary. “There’s still room for final adjustments.”
pcowley@www.reddeeradvocate.com