Chamber Calls for Greater Cost Certainty as 2026 Tax Increase Moves Beyond Initial Expectations

The Red Deer District Chamber recognizes the focused efforts of City Council and Administration to reduce the proposed 2026 municipal property tax increase to 3.97%. This reflects a clear commitment to improved fiscal discipline, prioritization of core services, and progress under the City’s Financial Roadmap, efforts that are acknowledged and valued by the business community.

However, the final approved increase of 5.49% reinforces a growing concern among businesses: the continued escalation of the overall tax burden, driven in part by significant increases outside the City’s direct control. The 12.83% rise in the Provincial Education Property Tax (an increase of $6,418,874) and the 27.65% increase for the Bridges Community Living Foundation ($121,111) have contributed materially to the total tax requirement, alongside municipal increases.

For Red Deer businesses, the issue is not solely the rate itself, but the pattern and predictability of increases. Following last year’s substantial tax increase, this additional escalation adds to cumulative cost pressures at a time when businesses are already navigating inflation, labour challenges, and economic uncertainty. Even with a reduced municipal starting point, the final outcome signals that achieving cost stability remains difficult.

“Council and Administration have made meaningful progress in bringing the municipal increase down to 3.97%, and that effort should be recognized,” said CEO Frank Creasey. “At the same time, the final result highlights an ongoing challenge for businesses. When major cost drivers shift during the process, it creates uncertainty that makes planning, investment, and growth more difficult.”

The Chamber emphasizes that predictability and consistency in taxation are critical to maintaining a competitive business environment. Incremental increases, when compounded year over year, have real consequences for business decisions—affecting hiring, capital investment, and long-term growth planning.

Chamber President Matt Wear added, “Businesses understand the financial realities facing the City and support responsible fiscal management, including rebuilding reserves and maintaining essential infrastructure. However, the shift from 3.97% to 5.49% reinforces concerns about regional attractiveness and long-term affordability. Greater stability in the overall tax environment is essential to maintaining business confidence.”

The Chamber remains supportive of the City’s direction on financial reform, transparency, and disciplined spending. At the same time, it encourages continued collaboration across all levels of government to address the cumulative impact of these increases and to improve overall cost certainty for local taxpayers.

Sustaining a competitive and investable environment in Red Deer will depend not only on managing costs, but on ensuring businesses can rely on a stable and predictable fiscal framework year over year.