Red Deer District Chamber calls for Balances Approach to 2025 Budget

Red Deer District Chamber Calls for Balanced Approach to 2025 City Budget
 
November 6, 2024
 
Following several meetings with City Administration, The Red Deer District Chamber has responded to the release of the draft City of Red Deer 2025 Budget with a call to immediately reduce tax supported Operational expenses by 3%.  This recommendation is based on a balanced approach and one that acknowledges the significant amount of work The City must do in improving efficiency and managing costs.
 
“We have looked closely at The City’s financial position for 2025 and believe it is essential to consider further expense reductions alongside property tax increases.” says Red Deer District Chamber CEO, Scott Robinson.  “The City of Red Deer faces a significant deficit, as revenues have fallen short of expenses over the past few years. While we agree that The City must address this imbalance and reduce its reliance on reserves and utility dividends to balance the budget, we believe that the full financial burden should not fall solely on taxpayers and property owners.”
 
Through a recent survey, our members shared the view that it’s crucial for The City to review its services and the costs associated with delivering them. 51.61% of respondents wanted to see The City implement alternative ways of doing business to reduce deficit.
 
When asked how a potential double digit tax increase would impact their businesses, 64.29% of respondents said that this would result in significantly increased operating costs.
 
Respondents felt that a double-digit tax increase would not result in a sustainable financial solution for The City of Red Deer, and that the overwhelmingly best option for The City to explore for the 2025 Budget and beyond, was cost cutting and efficiency measures being implemented within City departments. 
 
“We believe a balanced approach is both reasonable and necessary. By reducing operational expenses by 3%, The City could save taxpayers approximately $9-10 Million, which would, in turn, make any necessary tax increase more manageable this budget year.” says Chamber CEO Scott Robinson. 
 
The business community has been clear: a double-digit tax increase is not sustainable and would significantly impact the ability of some businesses to operate and thrive within the city.  
 
###
 
 
About the Red Deer District Chamber

The Red Deer District Chamber is a membership-based business advocacy and support organization founded in Red Deer in 1894. Supporting over 820 member businesses in Red Deer and area its focus is to ensure a vibrant and sustainable business community and deliver programs and services that meet the needs of its members.