Leduc records 2024 budget surplus of $3,330,000

LEDUC -- The City of Leduc's budget surplus for last year has come in at a ten-year high.

This is according to the city's preliminary year-end results for 2024, which show an operational budget surplus of $3,330,000. The reporting indicates that this represents a total of 2.7 per cent of the city's overall budget for the 2024 fiscal year. Leduc's Manager of Accounting Services Paul Manesh spoke at this week's council meeting about where the surplus fits in terms of the results of the past ten years.

"This is the largest budget surplus the city has had in the past ten years, both in dollar terms and percentage terms," said Manesh. "2017 was the second-highest dollar surplus of $1,900,000, and 2014 had the second-highest percentage of 2.2 per cent."

Manesh says the four revenue streams that allowed for the significant surplus were utility service revenue, sale of services, other income, and interest in penalties. Sale of services contributed to the operating surplus due to the increased development and growth of the city, as this resulted in more building and development permit sales. Recreation services also trended higher than budget due to increased admission and membership sales at the Leduc Rec Centre. 

Manesh notes that the surplus for 2024 will be evenly distributed between Leduc's operating and capital reserves. Meantime, Mayor Bob Young says the surplus shows that the city's financial health has improved since the COVID-19 pandemic.

"When we went through the COVID years we had to reduce the amount we transferred to reserves," said Mayor Young. "The reserves are the money that is going to be spent on future projects, so it is important."

Other income and off-site levy revenues were also higher than budget last year, as Leduc experienced substantial development. Interest in penalties were higher than budget due to higher interest rates earned on cash deposits and investment income. For expenses, the city saved in a number of categories -- salaries and wages, contract services, debt servicing, and materials and supplies. Contract services savings were mostly the result of the city's RCMP contract coming in under budget. 

Councilor Ryan Pollard says the numbers indicate that the city is managing its money in the right way.

"The citizens of this city can be well assured that we take their concerns seriously," said Pollard. "They don't want to be overtaxed, they want to get good value for services, and they want us to be careful with their dollars."

The City of Leduc spent $90.8 million on capital projects in 2024.