A 3.5 per cent property tax increase for Red Deer County was recommended in the 2012 draft budget presented to council Tuesday.The exact rate for each property won't be determined until the mill rate is set later this spring, and will be dependent on each property's assessment, but the increase is expected to bring in about $1 million more than 2011, predicts Heather Gray, director of corporate services.ìWe are trying to stay within inflation,î said Mayor Jim Wood of the increase.Total operating costs for 2012 ñ $35.6 million ñ are down from $35.9 million in 2011, with most departments coming in under budget for 2011.ìWe are holding the line on our operating costs,î said Gray.The capital budget, at $38.2 million for 2012, is up $12 million from 2011, in large part due to the weather, explained Gray.ìThe additional $12 million being carried forward is specifically aimed at completing road and drainage projects we were unable to finish in 2011 due to the wet weather that lasted literally from spring to fall,î she said.She said in 2012 the county will continue its road program, spending $7 million on bridge work, $6 million on paving and $18 million on other work ó from chipsealing and base strengthening to construction and maintenance. An additional $1.1 million is going towards new drainage projects around the county.Gray predicts $32.8 million will be in reserves at the end of this year but suspects by the end of 2012 it will be closer to $29.5 million, mostly due to the use of carry-over fund projects. She said she likes to see about one year's worth of tax levy revenue in reserves. This year's municipal tax levy is predicted to be $30.8 million.The draft wasn't approved Tuesday to allow time for both public and council's feedback. It will be voted on during the Dec. 20 meeting.ìI'm happy with the budget presented, but there's some work to do yet,î said Div. 4 Coun. David Hoar, who added he hopes to receive some public feedback.
