Proposed 2025 Budget FAQs

What services or projects take up the most funds?

Generally, in the 2025 Operating Budget, the top three service areas are:

• Utility Services 14% of total expenditures
• Public Services 12.9% of total expenditures
• Fire & Ambulance Services 10.1% of total expenditures

How does the City pre-approve the municipal budget?

Every year, City Administration prepares a three-year operating budget and 10-year capital plan and presents it to City Council for feedback and approval. When the budget is approved in early December, Council is approving estimated revenues and spending for the next immediate fiscal year, and, in principle, the following two years.

The proposed 2025 budget demonstrates a commitment to fiscal responsibility; Administration reduced spending from the 2025 budget that was approved-in-principle last year. As a result, the estimated tax increase has been reduced from 5.9% to 3.4%.

How are capital projects like road repairs, facility upgrades, or new infrastructure funded?

Capital projects are paid for through developer contributions, provincial and federal grants, tax-supported debt and drawing from the City’s capital reserves.

What measures are in place to ensure the money is spent wisely?

The City has several measures to ensure that money is spent wisely:

• A formal budgeting process which includes collaboration between Council and Administration, and public engagement. This process includes a detailed analysis of past spending, current economic conditions, public feedback and the needs of the community to determine which services and projects should be continued/discontinued, introduced or increased/decreased. Funds can only be spent if they are approved by Council.
• The City issues and publicly reports annual financial statements featuring budgeted versus actual information. These financial statements show how property taxes and other revenues have been allocated. Additionally, the City publishes an annual report to report on spending, performance measures and detailed information on initiatives accomplished throughout the past year.
• The City’s financials are audited each year by an independent auditor who provides an opinion on whether the financial statements fairly represent the City’s financial position. The results of the audit help ensure funds are used appropriately and there are no discrepancies in the financial reporting.
• City Council maintains oversight of the budget by requiring Administration to report on the status of current budget spending on a quarterly basis, providing transparency and accountability.

Are there audits or other oversight processes?

Every year an independent auditor reviews the City’s financial statements in accordance with the Canadian generally accepted auditing standards.

How are service fees (e.g., water, waste collection) determined?

These are determined based on several factors including the cost of providing these services, benchmarking with other municipalities in the region and applicable legislation.

How much debt does the municipality have?

The amount of debt the City can carry is established by Alberta Municipal Affairs. As of Dec. 31, 2023, the City of Leduc held $75.6 million in long term debt, which is 43% of the total amount the City is permitted to carry and can be broken down into two categories: tax-supported debt and developer-supported debt.

Tax-supported debt comes from capital projects paid for with City funds. Developer-supported debt is paid for by off-site levy reserves and are not paid for with taxes. For example, the new snow storage site was funded by tax-supported debt while the Robinson reservoir was funded by developer-supported debt.

How are borrowing and debt service costs factored into the budget?

Debt servicing costs affect the operating budget when the projects are City funded. (Not funded through off-site levies or developer funding). These costs are included in the City’s operating budgets for the term of the debentures.

Why is the City of Leduc operating budget higher than other municipalities with the same population?

There are several reasons why two cities with the same population may have different operating budgets:

• Cities may offer different levels or scopes of services. For example, the City of Leduc owns and operates the Leduc Recreation Centre. The TransAlta Tri Leisure Centre is co-owned by three municipalities but operates as a corporation and is governed by a board of directors.
• Labour costs can vary depending on the cost of living in a city, union contracts, and collective bargaining agreements.
• Differences in geography affect costs. Cities spread over a larger area will have increased costs for things like road maintenance and transit.