City Council approves first reading of updated Traffic Bylaw and General Penalty Bylaw

Red Deer City Council completed first reading of updated Traffic Bylaw (3707/2025) and General Penalties Bylaw (3036/A-2025) that will provide clarity and consistency in application of the bylaws as well as eliminate challenges in enforcement.

Key updates to the bylaws include:

1. Ticket Pre-Payment:
   • Removing the option to pay a parking ticket early to receive a reduced fee from the General Penalty Bylaw and adding it to the Traffic Bylaw.

2. School and Playground Zone Start Times:
   • Through investigating requests from schools to have school and playground zones start at 7 a.m., rather than 8 a.m., Administration determined that almost all school and playground zones in the city have students on the street prior to 7:30 a.m. To be consistent across the city, the start time is being moved to 7 a.m. providing an added measure of safety for all students.

3. Salt on Sidewalks:
   • Removing the provision prohibiting the use of salt on sidewalks as this provision was rarely reported and it is difficult and costly to enforce.

4. Permits:
   • More structure was added to the bylaw to clearly articulate conditions and requirements of Use of Streets Permits, as well as Excavation Permits and Alignment Permits.
   • Lastly, fees for closures impacting on-street and off-street stalls have been adjusted to reflect the actual revenue in each parking zone rather than the flat fee.

5. Penalties:
   • Penalties have been reviewed and updated.
   • During the last bylaw adoption, the penalty associated with vehicles being towed due to snow or street sweeping operations was inadvertently missed. This penalty has been added back in at a slightly higher amount due to an increase in the cost to tow a vehicle through The City’s contractor. This prevents the costs associated with towing vehicles during these operations from being subsidized by the tax base.

“These updates streamline the bylaws to create clarity for residents and administration,” said Erin Stuart, Inspections and Licensing Manager with The City. “They also help to eliminate regulations that are challenging to enforce and bring penalties in line with other City Bylaws.”

Second reading of both bylaws is anticipated for January 27, 2025.

Westerner Exhibition Association (WEA) loan agreement adjusted

City Council passed second and third reading of a loan amendment bylaw to suspend interest and principal payments related to a $19 million WEA loan with the goal to further support WEA’s financial sustainability.

The item was back in front of Council today after first reading occurred in December 2024, at which time Council expressed the need for a more detailed report on the impacts of WEA’s loan on the City’s financial position.

“Today’s decision is all about providing WEA additional time to achieve financial stability while recognizing its role in generating significant economic activity in the region. WEA hosts 1,500 events annually and welcomes 1.5 million visitors each year,” said Mike Olesen, Growth and Finance General Manager.

Between September 2021 and today, City Council has continued to adjust and respond to the evolving needs related to the loan agreement.

Recently, The City of Red Deer, Red Deer County, the Westerner Park Foundation and the Donald family each contributed $500,000 to the sustainability of WEA. Normally under the existing terms of the loan agreement and loan bylaw, this injection of cash would trigger a loan payment back to The City. However, the intention is to give WEA the time and funds to recover and reach sustainability and today’s decision to suspend interest and principal payments on the $19 million loan responds to this need.

With these adjustments to the conditions of the loan, WEA must still pay the loan in its entirety by the end of the loan’s term. This decision has an impact on the City’s financial position in the short term, but as WEA ‘s financial performance stabilizes, payments on the loan are anticipated to return. This is some of the additional information provided to City Council today.

“To reiterate, this does not mean that the $18.7 million remaining debt is forgiven, but rather that The City must temporarily report a change to our financial statements to better reflect the real value of the loan at a point in time,” said Mike Olesen, Growth and Finance General Manager.

“Westerner has a three-year business plan, and its success is contingent on the changes made today, and the involvement and contributions of partners, including the Province. We still need to continue to recognize the realities and time it takes to recover being a major agriculture society and event centre in our Province and region,” said Tara Lodewyk, City Manager. “The Westerner is working hard to make positive changes that improve its financial situation and the experience for our community. We can all help. It is as easy as choosing to attend one of the many events at the park, and we encourage our citizens to do just that.”

With today’s decision, loan payments will be paused until April 1, 2027, enabling WEA to focus on its recovery plan. This suspension aligns with ongoing financial contributions and recovery planning efforts by The City, Red Deer County, the Province of Alberta, and other stakeholders.

During this period, Westerner Exhibition Association will present annual financial updates to City Council.