'It positions us for tomorrow': Red Deer mayor on double-digit tax hike, a growing city and more in year-end interview

Red Deer mayor Ken Johnston discusses a double-digit property tax increase, population growth and development in Red Deer, and plans to run in the upcoming municipal election with Alberta Primetime host Michael Higgins.

This interview has been edited for clarity and length.

Michael Higgins: Red Deer City Council budget deliberations in November ultimately resulted in approval of a 10.5-per-cent municipal rate increase. Red Deer is not alone in that regard.

Quite the change from a few short years ago when Red Deer saw a zero-per-cent increase. What drove that difficult decision?

Ken Johnston: I think you've touched on part of it, the zero per cent the few years prior. We paid a price, literally and figuratively I think, for deciding to go that route.

Because inflation certainly became a factor, COVID obviously was a factor, certainly the continuing impact of city services and so forth. It really was a decision where we played a little bit of catch up, if you will, on the years that we really should have taken I think a little bit more of a measured approach and so on.

This positions us - as difficult as it was, and it was obviously difficult, many councillors really, really struggled here. Even those of us that voted for the increase struggled because we know the impact on our on our citizens and so on. But this not only shaped us up for financial health in 2025, but in ensuing years. Making sure that we can offer the same quality of life that people have come to expect.

MH: On that very point, what does all of this then say about Red Deer's financial sustainability, being able to adjust and adapt to the unprecedented population growth so many Alberta municipalities are struggling to keep pace with?

KJ: Thank you for saying that because we had a record year of housing starts this year, and our development permits are far in excess of what we've seen historically.

We are on a growth curve, and certainly with infrastructure like the hospital coming and the Justice Centre coming and the residential development that we saw this year, Red Deer’s going to be positioned very successfully over the next five or 10 years.

Going back to the budget itself, we now have an ability to increase our reserves and get them back into good financial health. We need to be able to say, can we reinvest in our infrastructure? Our critical infrastructure, pipes, electricity, transit, fleet, those kinds of things, let alone our rec centers and so on.

It made the decision very, very difficult, very prolonged, in many ways, in terms of the debate and we brought the community along with us. It was about an eight-month process to get where we got to. It really shows that we do have the resilience that now we will need. And we're still very competitive compared to mid-cities our size - we're still lower than many of our counterparts.

So it was difficult, but it positions us for tomorrow, and that was the important part.

MH: So more growth on the way, and to accommodate that growth - and for many in your city, it's long overdue - expansion of the Red Deer Regional Hospital.

Can this come soon enough?

KJ: I recall you and I probably talked about the hospital this time last year and maybe the year before. It was just so encouraging to see the construction start this year. We've got a couple of incremental construction projects on site now at the hospital, and also an acceleration of the cardiac catheterization service. We're going to bring that forward in the community five years before schedule, which is terrific.

It's a partnership of our local health foundation, some private donors and the provincial government. So can it come soon enough? I'd love if we were cutting the ribbon tomorrow.

The bottom line is the earth is moving, very literally moving on the hospital site, and we're getting there. Certainly by 2031-32 I suspect we'll have what I would call the centre of excellence for Alberta, if not for Western Canada, on that site.

MH: Making headlines here - new that Red Deer’s homeless population has more than doubled in the last two years.

Estimates as well that there are 37 per cent without shelter. What's being done now to make headway in that regard?

KJ: When we saw the numbers, as saddening as they are, it wasn't really surprising. Looking at the waiting lists for housing, looking at the encampments that we're dealing with, and certainly even our own agency saying that we had folks coming in from Calgary and Edmonton because of the stresses on those shelters.

Our city administration and our agencies have sat down. We have a good, what I would call winter protocol program established. We have shelter capacity. Just a few weeks ago, we met in council and we passed a zoning bylaw allowing for more sheltering spaces in the existing shelter - so they took over an adjoining property for sheltering spaces.

These are short-term fixes. The long-term necessity here is permanent, supportive housing and affordable housing. We've established a Housing Foundation in Red Deer this year, which is extremely encouraging. The work they will do and we will do as a community with that foundation will put us a good step forward.

We've got a $30-million application in front of the federal government for housing, and one of our housing authorities has a $16-million application in front of the province. We can get that funding, and I know we'll get the answer soon. If we can get that funding, we're well on our way - but that would take, I would argue, probably two years, maybe three years, before we build out just the need for today.

So we continue to play catch up. We're not alone there, and we certainly need federal government support to help us there.

MH: I'm going to squeeze in one more quick question for you - probably expecting this one.

Municipal elections coming up in 2025. Thoughts on seeking another term as mayor?

KJ: I'll say this: This has been an incredible honor and an incredible privilege these past three years, and certainly going into 2025. I have a couple of weeks off right now - of course, I’m never really quote “off” when you're the mayor - you're certainly connected and so on.

I'll be certainly doing a lot of contemplation, a lot of talking with family, a lot of talking with some with some great friends. And I'll be making an announcement early in the new year.