Budget 2025 Balances Responsible Spending and Service Delivery

Leduc City Council approved the 2025 Operating Budget and 2025-2026 Capital Budget on Monday, Dec. 2, prioritizing responsible financial management while continuing to deliver the services residents rely on. The budget reflects a balanced approach to meeting community needs and managing expenses, emphasizing sustainability for the future.

The budget forecasts a 3.5% tax increase over 2024. Of that, 1.4% can be attributed to general economic inflationary pressures, 2% to the decrease in provincial funding for infrastructure related expenditures, and 0.1% to a transit-related service enhancement. The final average tax increase will not be known until the spring after property assessments are complete.

Savings were achieved by reducing spending on materials and supplies (down 4% from 2024), and training and development (down 3% from 2024). These efforts helped offset increased costs, supporting the City’s commitment to service excellence.

The operational budget outlines expected costs for programs and services like snow removal, fire and ambulance, policing, recreational facilities and community events. The 2025 operating budget requires a projected revenue of $130.6 million which is raised through property taxes (49%), utility services (27%), government transfers (9%), sale of services (8%), other income (3%), rent revenue (2%), and interest and penalties (2%).

To support growth and maintain $1.4 billion in existing capital investments, the City has developed an integrated capital program that balances borrowing responsibility, using capital reserves, security grants and managing assets effectively.

Capital expenses in 2025 are estimated to be $33.9 million and will include work on projects like Fire Hall 3, expanding the 47 Street multiway, building new amenities (e.g., a new community garden in Deer Valley) and improving roads in Willow Park. This will be paid for through City reserves (54%), grants (24%) and off-site supported debenture borrowing (21%).

Utility fees collected by the City provide water, sewer, garbage collection and stormwater infrastructure. Some costs are outside the City’s control and are determined by the service provider. For example, Arrow Utilities manages wastewater treatment for the City and charges a cost for that service.

The 2025 Budget reflects the City’s commitment to fiscal responsibility, accountability and sustainability. By balancing financial pressures with community needs, the 2025 Budget positions Leduc for continued success while maintaining high-quality services for residents.