City of Red Deer
City Council Forum Part 4: What is the appropriate approach to municipal tax increases?
4. How do you feel about the following goals: a. Zero percent tax increase? b. Tax increases which are lower than or are tied to the level of inflation? and c. Tax increases which reflect the need of the municipality to correctly provide the appropriate level of services to taxpayers, visitors, and those among us who don’t pay municipal taxes? Are you committing to one of these options through your mandate?
We have had zero taxes and that certainly can come back to bite You when the adjustment has to be made which can amount to double digit increases down the road. The rate of inflation can be an interesting connection as many things the Municipality has to purchase or use are not tied to the inflation rate so again can be skewed number. I would like to see us figure out a better system to tie the Service Levels to Taxation. As a taxpayer I think people only want to know what they are paying for and in some instances what they are getting for their money. This can be difficult in some situations like the Balancing Pool in the Power situation where 50% of the bill is dictated by AESO the governing body that has oversight for Power for the province. I will definitely commit to the Value for Money in the Service Delivery and some of these audits have already taken place.
Taxes ensure that current city services are delivered and our infrastructure maintained. We were successful in a 0% tax for 2021 and also a 0% tax or 2022 in last year‘s budget. As you indicate taxation is very complex and cannot easily be tied to the consumer price index as often the municipal price index is higher . For example the cost of steel, concrete, lumber etc. is typically higher than the consumer price index measurement of inflation. A dedication to operational efficiencies and value for money audits by both Administration and Council will continue if I am successful. We all want value for our tax dollar, that’s the critical measurement . I’ll ensure our citizens have a voice in how we deliver services and at what cost.
The City of Red Deer is a $500 million a year operation–including operating and capital budgets. Some of the most important work of Council is setting the direction for our budget. That requires individuals with experience recommending and implementing budget decisions, which I have. Most important is the need to invest wisely in our community, respect taxpayers and make responsible decisions.
There is considerable uncertainty facing City Council–the downturn in our economy has seen reduced assessment values, reduced the capacity of many to pay taxes and other levels of government are downloading costs onto cities. The province has given notice of a 25% cut to infrastructure funding, a major cut for our City. More cuts and downloading is likely which will require tough decisions.
The 2022 budget has already been set. This gives the new City Council time to gain a deep understanding of the budget that will allow us to make strong, responsible decisions for the following year. It’s about the balance between revenue and expenses – changes in one requires changes in the other. I have experience making these decisions through my work, as well as community involvement.
In the end we need tax rates that efficiently and effectively reflect the need of the municipality to provide the level of services for core operations and programs. We need to ensure we do so in the most cost effective manner that is understood by taxpayers
I haven’t committed to one of the above options but know a majority of citizens prefer a zero percent tax increase. That being said, I’m all about conferring with other municipalities and noting how they best manage. I am frustrated by what I feel is a lack of facilities in Red Deer and have heard about the possibility of a 50 m pool for the more than 40 years I’ve been in Red Deer. I don’t believe in raising taxes for facilities but will do everything to emulate how a smaller centre like Grande Prairie made a 50 m pool and extensive recreational facility possible with their more limited tax base. As well other cities with a lot less population have as many indoor ice surfaces as Red Deer. Look at what Blackfalds is doing. If we draw more business and residents, we will have more tax dollars. Then grants and provincial and federal level monies need to be secured so we can address our hospital situation and other areas that citizens of Red Deer are asking for and deserve.There is money out there and it’s time for Red Deer to get its fair share of it.
During these difficult economic times, my goal would be a zero percent tax increase or one at or lower than the rate of inflation. It is impossible for candidates not on Council to make such a commitment without knowing the current status of the budget or what downloading the Province may include in its budget.
I strongly support multi-year budgeting. That helps with planning and also helps keep costs in budgeting under better control.
I also support a minimum of a two-year tax freeze. With careful planning and expenditure control, I feel that this goal is attainable.
Fees and levies also need to be controlled as they are part of the costs of living and doing business in Red Deer.
Another cost of red tape. The City has started red tape reduction. Much more can be done and will make Red Deer a better place to do business and to live.
From the perspective of a taxpayer, taxes are always too high. As a councillor candidate, it is a fool’s game to take a firm position on say “zero percent’ position or any other taxation approach. I will take the time to analyze the budgets in detail to gain better objectivity on spending and programs. My general approach is that people and governments should live withing their means and my bent is always to find ways, if possible, to lower taxes.
A word of caution: Inflationary pressures, burgeoning deficits, and mounting debt at all levels of government are likely to “throw a wrench” into the best laid plans and budgets.
For the current two year budget cycle (2021 & 2022) adopted by Council in the fall of 2020, our property tax rate was wholly appropriate and defensible at 0% for both years on the operating side and 0.5% per year on the capital side. Given the extraordinary impacts of Covid, a global recession, and low global oil prices, it was the right, responsible thing to do. Having said that, over the past 27 years that I’ve lived in Red Deer, I’ve seen years where
Council has approved 11% and 13% tax increases respectively over two consecutive years! That is wholly unacceptable and I vowed that I would do all I can to prevent such a thing from ever happening again. So, have our property taxes increased disproportionate to our economic realities? Yes, for sure they have and it’s critical that we not allow those kinds of shocking double-digit increases again. There’s simply no defensible rationale for it.
Having said that I likewise don’t subscribe to the “hold the line – 0% tax increases” indefinitely, because it’s not sustainable in the long term. The general level of inflation for consumer products varies significantly from the types of products/services municipalities must purchase to properly maintain a city of our size. Thus, there’s a separate inflation rate calculated annually to reflect inflationary pressures on the average basket of spending municipalities need to purchase (like gravel, snow plows, waste treatment equipment, and bullet proof vests, etc.).
So I’m likely more comfortable with a version of (b) that accounts for the average municipal spending inflation rate. However, with skyrocketing Federal/Provincial debt and rising inflation, it’s critical that governments everywhere (but particularly municipal governments, who have essentially only one major revenue stream: property tax) rein in spending and prioritize tax dollars on the most essential amenities and services. Therefore, Council needs from time to time to consider how to spend less in absolute terms during challenging economic times.
The option I would choose is not reflected in your question. I think it is important to maintain a level of service that works for our community. If we choose not to account for inflation and population growth, we are choosing a cut in services or service levels. I am all in favour of reviewing services and service levels, and making choices, but continually expecting to “get more with less” is unrealistic. The services the city provides are valuable. We all depend on them everyday. City services contribute to our quality of life. Equity within our community is important.
This question is part of our all things to all people approach to Municiple governance that needs change. It assumes that services are based on property taxes, rather than asking what services can we remove if we need to limit our property tax costs to financially strapped home owners and renters. The problem is not the rate of increase in taxes, but rather what can we no longer afford if we are to make our downtown more livable and reduce significantly crime statistics (like even to the national average). They are not statistic but our lives. This needs council team work urgently and not in a year (again a task force with a deadline and not external consultants).
For me it will always be to continually assess our revenue streams and efficiency of operations in order to provide the required level of city services residents demand. My view is to be fiscally responsible within every decision making process and especially the budget for both operations and capital. There are also huge advocacy opportunities illustrated by our tens of millions in Federal grants annually by our participation with the Federation of Canadian Municipalities. Being the government closest to the people allows for funding to be allocated in the best interests of the local community.
I believe we will need to adjust property taxes to reflect the level of inflation to maintain our current service levels and work on improving the ‘culture of service’ to our customers, the taxpayers. I would only consider proposing an increase if we can show value to taxpayers by reducing crime and addiction, and to kickstart economic growth.
Council members, when reviewing and debating the City’s Operating and Capital budgets must be cognizant of the local economy and specifically the challenges for individuals, families, seniors and businesses from the past 20 months, and before that.
This past term, City Council moved to a two year budget process. Council passed a 0% tax increase for 2021 and 2022 with a mid year budget review for the next Council. The next Council will debate the two year budget process in 2022 for 2023-2024 and then again in 2024 for 2024-2025. Council must also be cognizant of the effects of increasing any fees and charges such as transit fees, recreation fees, facility rentals and development fees. The question is how another two years of 0% tax increases will affect the delivery of municipal services, operations, reserves, the future two year Capital budget and plan and the ten year Capital plan, along with impacts of inflation. The City will continue to pursue any available grants or competitive grants accessed through the Province and Federal orders of government.
Having lived in Red Deer for over 40 years, I recall when one Council had 0% tax increases during the term. I understand that in the years that followed, the next Councils were faced with challenging decisions and citizens of Red Deer later faced double digit tax increases. Good municipal operations means regular review of services, looking to innovation for delivery of services, cost savings where possible and when appropriate, and if it makes sense/cents for Red Deer. Compared to other Alberta municipalities, Red Deer is often in the middle of the pack for property taxes. Respect for tax dollars must always be a priority when making Council decisions along with ensuring there is not a big catch up tax rate for us as tax payers.
There must also be an appropriate balance between the residential and non residential tax rate. I believe the Council of the day should attempt to keep pace with inflation, or they will be adding to future municipal challenges and governance decisions that will need to be addressed by future Councils for Red Deer citizens.
With the local economy, and recognizing the rate of inflation so far this year, and effects of reduced City revenue from fees and charges, the new Council must be brought up-to-date on operating and capital budgets, while at the same time acknowledging inflation and how that will impact City operations and capital budget decisions and city tax payers. At this time it is too early to commit to any tax rate until up-to-date information has been reviewed by Council. Throughout Red Deer citizen opinions, there is a multiplicity of services that each of us, our family or businesses relies upon. The goal of our municipality is to provide these services, through the lens of affordability, reliability and change. And at the same time, Council should work with the business and development community for ease of doing business with City of Red Deer and the lens to economic competitiveness and retaining and attracting businesses to Red Deer.
City of Red Deer
City of Red Deer puts out call to private owners interested in selling or leasing property for integrated homeless shelter
Call for privately owned properties for consideration during shelter site selection process
Administration will assess the privately-owned properties submitted, sites that are currently on the market, and municipally or provincially owned properties using Council’s criteria:
- Ability to acquire site: Acquiring the optimum site can be done in a timely manner. Acquisition options and costs are important considerations.
- Adequate size: The size of the site considers the potential need to adjust service delivery at any given time. It will accommodate proposed integrated amenities and services. It considers the land size needed to accommodate outdoor gathering spaces and activities. The site already has a building or can accommodate a building that meets the Province’s minimum requirement of 10,000 square feet.
- Broad community impact: The site aligns with The City’s vision for the community. Community impact includes considerations such as, impacts on economic and business development, and municipal operations. It includes potential reputational impacts and financial impacts (both capital and operating). It also includes impacts to those accessing shelter services in our community. The site considers impacts to our community as a whole, including health, and safety for all in our valued places and spaces that are enjoyed by our citizens.
- Impacts to surrounding area: Impacts to businesses, residences, parks, trails, and schools are a priority consideration in selecting site. The city’s reputation is considered. A preferred site can accommodate and foster development of a safe, secure shelter.
- Access to services & supports: Safety and basic needs for all is a priority. Regularly utilized services and supports that would not be co-located are taken into consideration. Sites where co-located services can operationalize are preferred.
Once the technical assessments are complete, administration will present options to Council for consideration to recommend to the province.
If you are a property owner and would like to submit a site for consideration, please fill out and submit the online form here.
For information on the future shelter site selection process, please visit www.reddeer.ca/shelter.
Back on February 3, City Council provided a “community update” on the status of 2 properties which were thoroughly vetted but failed in the end to get the go ahead. Here is video from that announcement and the following q and a with media.
City of Red Deer
City extends new $1 million line of credit to Westerner Exposition and calls for a 15 year Master Plan
City remains committed to supporting the financial sustainability of Westerner Exposition Association
- In 2023, begin the development of a Master Plan for the Westerner, which is expected to cost $100,000. The recommendation is that this cost be equally split between The City and WEA. The Master Plan, recommended in the RFA, is a 15-year vision that will include land use, access and multi-modal transportation, building design principles and site servicing.
- Support short-term cash flow for the Westerner by providing a $1 million line of credit for WEA to cover expenses prior to realizing event revenue. This contingency loan is seen as emergency funds, with an expectation for it to be paid back once revenue is realized and only used after their current line of credit. At today’s meeting, Council approved first reading of the borrowing bylaw to accommodate this.
- Amend the repayment formula for the $19 million Exhibition Hall loan agreement for five years to allow time for WEA to retain sufficient cash to meet current obligations, improve cash flow and build their Major Maintenance Reserve. Administration projects that while WEA would not make a loan payment until the fifth year, there is no impact to The City’s budget or to the 30-year loan payment deadline.
- Amend the current RFA to have the City Manager approve all expenditures from WEA’s Major Maintenance Reserve.
“This decision made by City Council is important as it is a representation of Westerner Park moving forward. We appreciate the leadership that Council has shown in recognizing our work to recover, and by putting their trust in our promising future. This support gives our Non-Profit Agricultural Society the security we need to thrive for many years to come, to continue to be the hub for major events in Central Alberta.” – Mike Olesen, CEO Westerner Park
“City Council remains committed to seeing the Westerner through these tough economic times, with the ultimate goal of creating financial and operating stability for Westerner Park ensuring we can continue to attract large events and grow as a City and region. While these are difficult decisions for The City, we are confident in the Westerner and the positive and vital role it serves in our community life, economic development, and its integral place in The City’s Major Event Strategy and Destination Development Framework. Our region and our province benefit from the influential role that the Westerner has, in bringing events to this province.” – Mayor Ken Johnston, The City of Red Deer
Funds approved today to support WEA do not impact The City’s budget, as dollars were earmarked during the 2023-2024 multi-year budget process. The approved recommendations look to balance the financial needs of WEA to regain solid financial footing, while also protecting The City’s investment should financial recovery not occur.
For more information on the support The City provides to WEA, visit www.reddeer.ca/westerner.
Curious: Angela Merkel’s September 2019 Visit to Wuhan
The Vaccine Was “95% Effective” How?
Chief Clarence Louie and author Matt Tenney featured at Workforce Strategies Summit March 30 in Red Deer
Poilievre calls for testing that would allow doctors, nurses to work across Canada
conflict2 days ago
Canada extends emergency visa applications for Ukrainians fleeing war until July
Health2 days ago
Ottawa to spend $1.5 billion to improve access to drugs for rare diseases
Alberta2 days ago
Hearings begin before Supreme Court on federal environmental impact assessment law
Business2 days ago
Fed raises key rate by quarter-point despite bank turmoil
Also Interesting2 days ago
Everything You Need to Know About Legal Sports Betting in Ontario
Food and Dining1 day ago
“Cook With Meg” creating community through online courses and camps for 3 years now
International2 days ago
Take hard line on Canada’s digital tax, online laws, tech associations urge Biden
Business2 days ago
Canada needs 300,000 new rental units to avoid gap quadrupling by 2026: report