2025 Operating Budget
Lacombe City Council has approved the 2025 Operating Budget, which includes a tax rate increase of 2.86%.
The tax rate increase is below Council's original direction to Administration of 3.2% and aligns with Council's commitment to keep increases at or below the Consumer Price Index (CPI).
The total Operating Budget for the City is $49.4M, including utilities.
"The 2025 Operating Budget reflects our commitment to keeping tax rate increases at or below inflation while continuing to maintain the services which matter most to our residents," said Mayor Grant Creasey. "Council's approach to tax rate increases ensures our community can continue to grow and prosper sustainably."
The average residential utility bill for water, wastewater and solid waste will increase by about 5.6% in 2025.
As of December 2023, the total debt outstanding for the City of Lacombe was $22.7M.
The City's debt currently stands at 35% of the limit imposed through the Municipal Government Act Council also approved the three-year financial plan for 2025-2027.
The Budget includes grant funding to partnering agencies, including:
- Lacombe & District FCSS - $103,108
- Connex Operating - $119,100
- Heritage Resources Committee (HRC) Grant Funding and Operating Program - $30,000
- Lacombe & District Historical Society - $82,500
- Lacombe Regional Tourism Operating Grant - $60,000
- Lacombe Days Operating Grant - $35,000
- Mary C. Moore Public Library - $359,841
- Lacombe Performing Arts Centre Foundation - $45,000
- Total Agency Grants - $834,549
2025 Capital Budget
Lacombe City Council has approved the 2025 Capital Budget, which includes 22 projects at the anticipated cost of $10.7M.
The Budget funding sources include $2.5M from grant funding, $4.9M from reserve fund withdrawals, $1.8M from other sources, and $1.6M from debentures.
“The 2025 Capital Budget allows Council to fund essential infrastructure in Lacombe,” said Mayor Grant Creasey. “The projects in this Budget are all critical investments, ensuring Lacombe continues to grow and thrive. By prioritizing these essential developments, we are laying the groundwork for a prosperous future for our community.”
Key projects in the Capital Budget include:
- Fairview Cemetery Expansion - $600,000
- Cranna Lake Trail Repair - $200,000
- Ball Diamond Upgrades - $425,000
- New Fire Station - $2.25 million
- Fire Ladder Truck Replacement - $650,000
- 76th Street Road Upgrades - $900,000
- 2025 Capital Works - $2.37 million
- 2025 Active Transportation Projects - $428,000
A complete list of projects included in the Capital Budget can be found on Lacombe.ca.
2025-2034 Capital Plan
Lacombe City Council has approved the 10-Year Capital Plan, which outlines Council's future capital priorities.
The estimated total capital expenditures in the 2025-2034 Capital Plan are $105.7 million.
Sources include:
- Debentures - $22.6 million
- Grants - $21.1 million
- Outside Sources - $6.3 million
- Reserve Withdrawals - $55.7 million
The plan also identifies potential funding sources, including third-party contributions, debenture borrowing, grants and reserve contributions.
"The 2025-2034 Capital Plan outlines large Capital expenses upcoming for the City of Lacombe," said Mayor Grant Creasey. "This organic document allows Council to plan and prioritize investments strategically, ensuring Lacombe residents continue to enjoy the high quality of life they are accustomed to."
The first year of the Capital Plan is the 2025 Capital Budget, which authorizes capital expenditures. The remaining nine years (2026-2034) are for planning and do not authorize capital spending. The plan meets provincial and federal requirements for multi-year capital planning.
Significant projects in the 10-year Capital plan include:
- Fire Station Building: Total Cost $8M (2023 - $0.5M, 2024 - $2.25M, 2025 - $2.25M, 2026 - $3M)
- This expenditure will start in 2024 with completion in 2026.
- Fire Ladder Truck Replacement: Total Cost $2.65M (2023 - $0.2M, 2024 - $0.5M, 2025 - $0.65M, 2026 - $1.3M)
- This unit will replace Tower 1, which was purchased in 2005. It is nearing the end of its purposeful life and will be up for replacement.
- Roads Renewal Program - Capital Works: Total Cost $16.2M (2026 - 2034)
- The Roads Asset Management Plan report highlighted the work required to maintain the overall condition rating of the existing road network and support new growth for the next 10 years.
- Pumphouse D: Total Cost $11.68M (2025 - $0.1M, 2026 - $0.95M, 2028 - $5M, 2029 - $5.63M)
- The 2013 Water Model Study and 2021 Water Model Update confirm the need for additional water storage to support future growth. Pumphouse B (near the Lacombe Hospital) has surpassed its design life and is the smallest of the City's three pumphouses. It is preferable to decommission Pumphouse B and incorporate the storage volumes and pumping capacities into a new facility from a long-term perspective.
- Regional Recreation Centre Contribution: Total Cost Unknown - $10M in Capital Plan (2032 - $5M, 2033 - $5M)
- The $10M placeholder for a regional recreation center will support the potential development of a new facility that aligns with the priorities outlined in the Recreation Master Plan.
- City Hall Replacement: Total Cost Unknown - $2.5M in Capital Plan (2034 - $2.5M)
- The $2.5M placeholder for a new City Hall will begin the design, land acquisition, and site preparation and servicing process. Costs are based on 2025 costs. Inflation is not considered when determining future expenditures unless specific future costs exist. The 10-year Capital Plan is updated every year during the annual Budget process.
Costs are based on 2025 costs. Inflation is not considered when determining future expenditures unless specific future costs exist. The 10-year Capital Plan is updated every year during the annual Budget process.
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