Leduc Budget 2024 Update

Tuesday, October 31, 2023

Municipal budget deliberations with Leduc City Council continued this week, starting with the Budget Overview presentations delivered by City Manager, Derek Prohar and Chief Financial Officer, Gene Peskens, followed by the proposed Corporate Services budget presented by Irene Sasyniuk, General Manager of Corporate Services.

What you need to know about the 2024 Proposed Budget:

  • Focus areas for Leduc's 2024-2026 proposed municipal budget include investing in growth and infrastructure, social development and modernization
  • Changes in areas including social services, inflationary pressures, supply chain issues and reductions in provincial funding are anticipated to have budgetary impacts this year
  • Leduc's non-residential growth presents opportunities for potential tax split enhancements
    • Estimated 2024 residential growth: 2.3 per cent
      • 1 per cent growth = $350K in new tax revenue
    • Estimated 2024 non-residential growth: 2.7 per cent
      • 1 per cent growth = $210K in new tax revenue
      • The last year that non-residential growth surpassed residential growth in Leduc was 2017
    • Estimated residential to non-residential tax split: 68:32
  • 2024 proposed operating budget total: $121.7 million
  • New! Administration is requesting approval for the first three years of capital spending (2024-2026) from the 10-year 2024-2033 Capital Plan, providing a greater ability to ensure tax revenues are being spent in a sustainable and responsible way.
    • 2024-2026 proposed capital budget total: $98 million
  • Franchise fee anticipated increases: $4.4 million from electricity (increase of $295K) and $4.5 million from gas (increase of $78K)
    • Note: Increases are due to consumption; not rate changes
  • 2024 proposed fees and charges:
    • Water Residential fee: $10.77/month plus $2.79 per cubic meter
    • Wastewater fee: $10/month plus $2.47 per cubic meter
    • Storm Water fee: $5.50/month
    • Solid Waste Management fee: $25.33/month
  • Proposed 2024 tax impact: 5.5 per cent
    • 1 per cent increase = $560K in tax revenue
  • Corporate Services budget priorities for 2024 focus primarily on needed capital upgrades. Highlighted projects include:
    • Increases to software maintenance (+$136K)
    • Contract services (+$71K)
    • IT governance ($50K)
    • Meeting room AV upgrades ($175K)
    • Telephones ($85K)

Items flagged for future discussion:

  • Fire Hall tax strategy
  • Cemetery development
  • Desktop and Video IT asset evergreening programs
  • Meeting room AV upgrades

A complete listing of flagged items from this year's budget deliberations is published on our Budget webpage.

Upcoming budget deliberation meetings:

This was the second of five budget deliberation meetings that will be held in Leduc until Nov. 27. Leduc City Council will meet three more times over the next month to hear from the respective divisions within the City of Leduc.

  • Nov. 6: Proposed budget from Infrastructure and Planning
  • Nov. 20: Proposed budget from Community and Protective Services
  • Nov. 27: Council will discuss items flagged for further debate

Following the final presentation on Nov. 27, there will be a two-week period during which residents can provide feedback on the proposed budget, and administration will make final adjustments based on City Council's direction throughout the deliberations.

The final 2024 municipal budget will be presented to City Council for approval on Monday, Dec. 11.

Related information: