The Budget and Taxation

QUESTION BY EMAIL:

My question is: how do you plan to align future tax increases with inflation? Many residents simply cannot afford annual increases in the range of 10 to 12 percent. This level of taxation is unsustainable and places a significant burden on homeowners.

[In Strathcona County] we implemented a process called Priority Based Budgeting. This tool evaluated the cost and value of every service provided by the municipality. It helped drive efficiencies and ensured that we focused on the services that truly mattered to our residents. I believe Red Deer would benefit greatly from a similar approach.

As a point of comparison, our property taxes in Strathcona County were approximately $2,500 less—on a larger home. This underscores the need for a more strategic and disciplined approach to budgeting and taxation in Red Deer.

(edited for privacy)


MY REPLY:

Thanks for your message and for raising this important issue. I agree—property taxes in Red Deer are high, and big annual increases just aren’t affordable for most people.

I support keeping residential tax increases to a maximum of 5%, while focusing on planning smart, building strong, and saving for the future. That means spending wisely on the resources and infrastructure we already have, rebuilding our reserve and legacy funds so we’re ready for the next “disaster,” and listening to other communities and using their ideas—even from provinces people don’t usually like, like Ontario.

I would definitely listen to suggestions from anyone on a better path forward that involves smarter spending and fiscal responsibility while protecting our existing resources and infrastructure from harmful cutbacks.

If we can’t keep increases under 5%, we have to make real sacrifices—like not wasting $11 million on a bridge rehabilitation when we’re running an $18 million deficit, focusing on critical services like firemedics (which I believe should be increased by 25% to reduce overtime), and not taking on expenditures that should be left to third parties. Our focus should be on providing core services and infrastructure, contracting out non-core services, and getting third parties to help pay for things like community centers, pedestrian bridges, and other projects. It also means getting out of the real estate business and focusing on what the city does best.

By combining smart spending, learning from others, and keeping our plans current, we can avoid big tax hikes while making sure Red Deer is strong, efficient, and prepared for the future. If there's one thing I know for certain, I don't have all the answers but working together we can find them.

Thanks again for your thoughts,
 
Kevin M. Klerks
Candidate for City of Red Deer Council
www.kevinmklerks.ca