City budget promises to be 'tough'
No additional police or firemen slated for 2010
As part of a tight 2010 operating budget, no new RCMP or Emergency Services members are slated to be hired this year.
In last year's budget the City approved the addition of four new firemedics and approved six new RCMP officers.
Mayor Morris Flewwelling said he doesn't think citizens will notice the impact of not hiring additional RCMP officers, if council chooses to approve it that way.
“I don't think they'll see it directly but it will not address the chronic problem that we have where our number of police officers is lower then we'd like it to be,” said Flewwelling. “But it's one of those things we are going to have to live with.”
Red Deer City council enters its second day of number crunching today as they work to approve the 2010 operating budget.
It is expected the budget will wrap up by Jan. 15.
The 2010 operating budget is pegged at $221 million.
If the operating budget is approved as is, Red Deerians face a 4.06% tax increase.
This would mean, based on the submitted budget, a home, which experienced the average assessment value change and is assessed at $280,000 for the 2010 tax year, will see an average monthly increase of $2.30.
Some key initiatives in the budget include growth of the City's park systems, a RCMP member fee agreement, fleet rate increases, Red Deer Public Library budget increase, Red Deer Regional Airport grant and staffing of the new transit customer service centre going into the downtown parkade.
“The budget was prepared based on the need to be responsive to the community's desire to keep tax increases to an absolute minimum during these difficult times, even if this results in a reduction of service,” said Lorraine Poth, the City's director of corporate services. “There are other new pressures we face for the first time, like increased costs for annexation and new growth areas as well as a reduction of revenue on all fronts, including investments.”
Flewwelling added the budget has been drafted in a way that Red Deerians will not see a sharp reduction in services.
“The lawns and parks will not go to hell, the fireman will still be there, the water will still run and the power will still be on,” said Flewwelling. “It's not one of those bone cutting budgets although it's going to be tough.”
City departments faced a number of tough challenges while drafting the 2010 operating budget, which has gone under extensive review since September 2009.
Some of those challenges include the global recession, which has made a major impact on the City's finances both directly and indirectly, lower revenue from land sales, lower off-site levy contributions due to slower growth and lower debt limit due to lower revenue.
Also, growth is putting pressure on the City's ability to support the level of service it provides and annexation will cost more in the short and medium term due to high rates of compensation for landowners and Red Deer County within City annexed areas. Providing City services in these annexed areas may need to be phased in.
“The overall goal of the 2010 operating budget is adjusting to the new economic reality,” said Craig Curtis, City manager. “The global recession certainly had an effect on the City's finances, and we have to hold the line while maintaining the vision of the organization.
“This was one of our toughest budgets. Administration has worked hard to bring council a budget that reflects the priorities of our City, maintains affordability for citizens and protects levels of service.”
Meanwhile, Red Deer City council approved the $106.9 million 2010 capital budget in November.
The biggest project approved in this year's budget was the North Highway Connector project.
The cost of the first phase, which received unanimous approval, is slated at $54.6 million.
Phase 1 includes design of the project, land acquisition, approaches and land embankments.
Council also approved in principal its 2010-2019 capital plan at that time.
“The 2010-2019 capital plan is designed to hold the line while maintaining our vision,” said Curtis. “We had to make some major revisions to the capital plan this year, with 66 projects deferred within the plan or pushed out to the year 2020.”
Some of the projects deferred include the proposed 50 metre swimming pool, civic centre and concert hall, among others.
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