Opinion on Red Deer City Budget 2025

By Al Poole

I have lived in Red Deer for 45 years and loved every year. So happy to be here.

Having said that, I see things, patterns over time, that worry me. When I worry I dig deeper – I just  need to understand.

Budget 2025: Wow – a massive document. I can only imagine what it cost to build this document. Even more concerning – the amount of time and effort for council members to understand. Crazy!

I will say up front – I wonder if anyone on council has a good grasp on operations performance
based on the budget – as presented. If I am correct, what does that say for citizens of Red Deer
understanding? [note: I do not equate understanding with agreement]

This could be so much easier. Council needs to insist this becomes clearer and easier to understand. (I can help).

As in the past, generally, I find this another document reads from a position of fear and defensiveness – simply looks like justifying “what we do is already the best”. Why would you do that to yourselves?

It starts at the top – the City Manager message is not inspiring. It lacks the leadership that says I got this and here is what I am going to do to correct our current course.

Upfront, an area that confuses me is the reserve transfers.  I find it hard to get a real good grasp on spending. I will work to close that gap soon.

Back to the document, a couple of things that caught my attention and I find encouraging. In the
Executive Summary, item 4 on page 5:  establish expectations of Administration to achieve a positive variance to budget. I presume this means a fair budget that requires Administration to be more effective and efficient in executing its work (i.e. not only from more tax revenue).  I applaud you writing it down – achieving it is akin to retained earnings in my work world (for City – healthy reserves). Second, the citizen surveys in the spring and then the fall.  They serve as a great guide for Council and Administration.

The City’s current financial situation is not great. If you understand and accept how we got here – the path forward becomes clearer.  Based on what I see in the document you have not understood or accepted. It still appears it’s the taxpayer who is carrying most of the load.

It is interesting that the citizen surveys point to reducing the size of City organization. That tells me everyone, without knowing the details, has a good sense that the City Operations are not as effective or efficient as they could be. I know some of you know it to be true, as well.

Ok – let’s delve into the budget. I like the breakout in TTAX sheet, page 65.  I commend Administration for projecting a positive variance over 4% Good job.  Now, a bold move demonstrating real leadership would be to take the projected 2024-year end outcome and make that the 2025 budget — and still deliver a positive variance in 2025.  Instead, all of that seems to have been lost – the 2025 budget is 6.3% higher. Who thought this an acceptable approach.

Secondly, Considerations and Bold Moves on page 71.  The title is impressive — the content is anything but bold.

If you were to assume, based on preamble, I started this review with skepticism – you would be correct.  The two items above, a 6.3% increase to base budget and lack of bold moves are absolute derailers for me. Given our financial position – regardless of how we got here – I am ok with, as a taxpayer, to help improve the financial position of my city.  Note: I said help – not carry it all. You totally missed it.  Why would I as a tax paying citizen, or any other citizen believe we are being served by strong informed leadership?  In essence you are pushing all of the fix onto us.

In closing – to keep it clear and simple: show me the math to $18,201,505 tax revenue increase.  I can not find a pathway to that number.  I realize MGA dictates certain rules you must follow – but it does not stop you from presenting a clear picture. Also, why would you list $512,317,612 – like it is the cash you will spend. Roughly, $89M is non-cash – it is an accounting transaction. I would like to see a summary of financials so I can reasonably assess how operations are doing — akin to EBITDA line in the for-profit world. In the absence of that summary, I have little confidence in Councils ability to reasonably assess operating performance.

I know from experience large organizations tend to grow organically and suffer from increasing
inefficiency over time unless specific actions are taken to correct the course.

You have a chance as Council and Administration to demonstrate leadership – the type that earns
trust and respect. Step up!

It is my intent to be helpful. I am happy to chat in more detail.
Al

PS: Please do not come back to me with it is a complicated operation and you do not understand.
I concede City operations have complicated elements but the nice thing about complicated – it
leads to prescriptive processes/procedures (easy to monitor and evaluate). Now on the revenue
side – there are some complexities that require more nuanced solutions.

Al Poole is a business and community leader. Former Site Leader Joffre Complex, Poole served with the United Way Central Alberta and Red Deer College.