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Budget

Budget Basics

Leduc’s budget is our plan for how money will be collected and spent to support the programs, services, and infrastructure our community needs.

Each year, we review and approve the budget with a focus on both short-term and long-term goals. The operating budget looks three years ahead, while the capital budget looks ahead ten years. This helps the City provide steady services and prepare for future growth by planning and saving for big projects.

Since community needs and financial situations can change, we review and adjust the budget every year based on new needs, unexpected economic shifts, or changes in funding from the province or federal government.

Operating Budget

  • Covers the cost of services and programs for Leduc’s residents and businesses, like social services, water and sewer, snow removal, fire and enforcement services, waste collection, and recreation facilities.
  • The City can’t plan for a deficit under Alberta’s Municipal Government Act. This means we must bring in enough money to cover all our expenses each year.
  • The operating budget is paid for by property taxes, provincial and federal grants, user fees and drawing from the City’s operating reserves.

Capital Budget

  • Covers the cost of building, maintaining and improving city buildings, parks, roads, and recreation spaces. Some projects are big and take a few years to finish, so the costs are spread out over time.
  • The City’s capital projects are paid for through developer contributions, provincial and federal grants, tax-supported debt and drawing from the City’s capital reserves.

2027 Budget

City Council will review the proposed 2027 Budget through a series of public meetings before making final decisions in December.

View the proposed 2027 Budget

Meeting Schedule

All meetings take place at the Leduc Civic Centre starting at 5:30 p.m.

  • Monday, Oct. 26 – Grants to Organizations Presentations
  • Monday, Nov. 2 – City Manager, Finance, Infrastructure and Planning
  • Monday, Nov. 9 – Corporate Services, Community and Protective Services
  • Monday, Nov. 23 – Discussion about flagged items
  • Monday, Dec. 7 – Budget presented to City Council for approval

The Nov. 2 and 9 meetings will include an agenda item for Public Input on Budget Matters where residents can speak to Council about the budget. Speakers must register in advance (email [email protected]) or in-person before the meeting begins.

Stay Informed

Watch meetings and view agendas

What We Heard from Residents

Residents shared feedback on quality of life, City services, and priorities for the future through the March 2026 Budget Planning & Citizen Satisfaction Survey. These insights help provide context as Council considers service levels, priorities, and budget planning.

High quality of life

92% of residents rated quality of life in Leduc as good, very good or excellent, compared to the Alberta benchmark of 68%.

Strong satisfaction with City services

Most residents are satisfied with City services overall (59%), exceeding the provincial benchmark (52%). Residents identified emergency services (police, fire, ambulance), parks, and recreation amenities as important strengths, while also highlighting snow removal as an area for improvement.

Day-to-day services matter most

Emergency response, parks, athletic fields, snow removal, and road and sidewalk maintenance have the greatest impact on residents’ overall satisfaction with City services.

Affordability is an important consideration

Residents identified keeping taxes low and maintaining service levels as the key priority.

Range of views on taxes and service levels

Results are divided on how to balance taxes and services, with slightly more leaning toward reducing or maintaining taxes through service cuts (46%); however, support for increasing taxes is substantial (41%), indicating a community split on preferred approach.

View full survey results View Council presentation

How does the budget affect property taxes?

The budget establishes the tax revenue required to fund City services, programs, facilities, and infrastructure. Property taxes are one of the City’s revenue sources and help fund many municipal services.

Learn more about property taxes & assessments

Operating Budget

The 2026 Operating Budget requires a projected revenue of $149.1 million to cover programs and services such as snow removal, fire and ambulance, policing and security, transit, recreational facilities, and community events. While property taxes contribute to this revenue, the City also collects revenue from utilities, government grants, service fees, rent, interest and penalties.

Leduc 2026 Operating Budget Revenue Summary pie chart

Capital Budget

The City of Leduc has a sustainable 10-year capital plan that focuses on maintaining the City’s $1.5 billion of existing critical infrastructure, while investing in new infrastructure to support community growth. Capital expenses in 2026 are budgeted at $40.1 million and include projects such as:

These projects will be funded through City reserves, grants, off-site levies (developer contributions) and tax supported debenture borrowing.

2026 Approved Budget

Budget Planning Process and Timeline

Each budget year spans three years.

Budget planning document over a 3 year timeline

Budgets

Current Budget

Previous Budget

Utility Fees

Utility fees collected by the City fund essential services like water, sewer, garbage collection and stormwater infrastructure. While the City sets some of these rates, others are established by external service providers and flow through the City to customers.

For 2026, Arrow Utilities, the Capital Region Southwest Water Services Commission (CRSWSC) and the City have all adjusted water and wastewater rates, with Arrow and CRSWSC accounting for about 64% of the total increase. These adjustments ensure infrastructure and systems remain reliable, properly maintained, and able to support the community’s long-term needs.

Explore conservation tips to help manage your household water use.

Utility Fees

Utility 2026 Fees and Charges Increase from 2025
Water $ 11.21 per month plus $3.10 per cubic meter 22 cents per month; 20 cents per cubic meter
Wastewater $10.40 per month plus $3.71 per cubic meter 20 cents per month; 86 cents per cubic metre
Stormwater $7.50 per month $1 .00 per month
Solid Waste $26.60 per month 77 cents per month

Franchise Fees

The City of Leduc charges franchise fees to utility operators who have exclusive rights to provide utility services within the city. These fees are included on consumer bills and remitted to the City.

To help build reserves that support long-term financial sustainability and future community amenities, City Council approved updates to franchise fees in the 2026 budget: an increase of 2% for electricity and 4% for gas. Franchise fees are an alternative way for the City to raise revenue, reducing pressure on property taxes while supporting essential services.

These adjustments ensure that all users—including those exempt from property taxes, such as healthcare facilities, non-profit organizations, schools and places of worship—contribute fairly to the cost of essential services we all depend on.

Budget FAQ

The municipal budget is the City’s fiscal plan that supports Council’s Strategic Plan. It is the City’s plan for how money will be collected and spent to deliver services, operate facilities, maintain infrastructure, and invest in the future. 

The operating budget covers day-to-day services and programs. The capital budget covers major investments in assets such as roads, parks, buildings, equipment and recreation spaces.

Administration prepares the proposed budget using Council direction, service requirements, financial forecasts, and long-term plans.

Council then reviews the proposed operating and capital budgets during public budget deliberations. Council may approve, change, defer or remove proposed budget items before approving the final budget.

Many City services, projects, and financial commitments extend beyond a single year. Multi-year planning helps the City anticipate future costs, maintain reliable services, and prepare for major projects.

The budget is reviewed each year so it can be adjusted when service needs, costs, funding or economic conditions change.

Municipal property taxes help fund a wide range of services and infrastructure, including:

  • Fire, policing and community safety
  • Snow and ice control
  • Roads, sidewalks and trails
  • Parks and green spaces
  • Recreation facilities and programs
  • Transit
  • Community programs, events and support services
  • Planning and development services
  • City facilities, equipment and operations

Some services also receive funding from user fees, grants, utility revenue, and other sources.

There are several sources of City funding. Municipal services and infrastructure are funded through a combination of:

  • Property taxes
  • Utility fees
  • User fees and service charges
  • Provincial and federal grants
  • Developer contributions
  • Rent, interest, penalties and other income
  • Reserve funds
  • Borrowing for approved capital projects

The proposed budget identifies the expected cost of delivering City services, programs, facilities, and infrastructure. It also estimates how much revenue the City expects to receive from sources other than property taxes.

The difference between expected costs and other available revenue is the property tax revenue required to balance the City’s budget.

After the budget is approved and property assessment information is finalized, Council sets the municipal property tax rates needed to collect that amount.

Not necessarily. A percentage increase means the proposed budget requires more property tax revenue than the previous year. It does not mean every property owner’s tax notice will increase by that percentage.

The change to an individual property tax notice also depends on changes in property assessments, the final tax rates approved by Council, and the provincial education property tax and housing requisitions collected through the tax notice.

They describe three different things:

Budget increase: The change in the amount of tax revenue required to balance the City’s budget.

Property tax rate: The rate Council sets to collect that revenue from taxable properties.

Property tax notice: The amount charged to an individual property based on its assessed value and the applicable tax rate.

A change in the City’s tax revenue requirement does not automatically result in the same percentage change on every property tax notice.

Maintaining the same service level does not always mean maintaining the same budget.

Costs can increase due to inflation, population growth, labour and contract costs, utility costs, infrastructure maintenance needs, changes in funding from other levels of government, and demand for services.

Council considers these pressures and potential efficiencies when reviewing the budget.

Growth can generate additional revenue, but it can also increase demand for roads, utilities, emergency fire response and community safety, parks, facilities and other municipal services. Council considers both the costs and benefits of growth when making budget decisions.

Reserve funds allow the City to plan for future infrastructure, equipment replacement, emergencies and other long-term obligations. Using reserves as part of a long-term financial plan helps the City prepare for future costs and can reduce reliance on borrowing or significant one-time budget increases.

Major infrastructure projects can provide benefits for decades but often require significant upfront investment. Borrowing allows the City to spread project costs over time rather than funding the full cost in a single year. Council considers borrowing alongside reserves, grants and other funding sources when making financial decisions.

Additionally, by spreading out costs over time, the City implements a more equitable approach as future residents will contribute to infrastructure costs that they benefit from.

Utility fees pay for services such as water, wastewater, stormwater, and solid waste collection. Property taxes help fund a broader range of municipal services and infrastructure. Utility fees and property taxes are separate revenue sources that support different aspects of City operations.

The City uses several measures to support transparency and accountability:

  • Council approves the budget and authorizes spending.
  • Administration regularly reports on financial performance.
  • Budgeted and actual results are reported through annual financial statements.
  • An independent auditor reviews the City’s financial statements each year.

Residents can:

  • Participate in budget and satisfaction surveys
  • Review proposed budget information
  • Attend public budget deliberations
  • Watch meetings online
  • Review Council agendas, reports and decisions
  • Stay informed through City communication channels

Public participation helps Council understand community priorities and perspectives as budget decisions are made.

Annual Financial Statements

2025 Audited Financial Statement 2024 Audited Financial Statement 2023 Audited Financial Statement 2022 Audited Financial Statement 2021 Audited Financial Statement