Strong growth and development positively impact City's 2026 budget

Stronger than anticipated growth and development in Spruce Grove is set to positively impact the City of Spruce Grove’s 2026 budget, as outlined in the 2026 Spring Budget Adjustment approved by City Council last night.

When the 2026 budget was initially approved in December, the anticipated property assessment growth was 4.12 per cent; however, updated assessment data shows actual growth of 4.99 per cent that will generate an additional $438,447 in property tax revenue. Additionally, building permit revenue is forecast to bring in $70,000 more than initially anticipated.

This increase in assessment growth and building permit revenue will reduce the forecasted tax revenue increase from 4.68 per cent, approved by Council in December 2025, to 3.99 per cent, providing welcome savings to Spruce Grove taxpayers.

“This year’s Spring Budget Adjustment shows how the city’s strong growth is benefiting our residents,” said Mayor Jeff Acker. “Providing a property tax rate reduction is a very tangible way that we can support our residents at a time when affordability is top of mind for many. It also shows that our community continues to be a place where people want to live and businesses want to invest.”

What this means for property owners

It’s also important for property owners to understand that while a 3.99 per cent budgeted tax increase was approved for 2026, their actual municipal tax change will depend on how their property assessment changed relative to the average across the community.

Property assessment is used to calculate the annual taxes on a property, which includes municipal property tax and requisitions for the Merdian Housing Foundation tax and the Provincial Education tax.

While assessment value does impact the amount of taxes a property owner will pay, higher assessment values do not always equate to higher property taxes. Final property tax notices must consider the year’s tax rate, which will be set in May.

Additional budget adjustments

In addition to the tax rate reduction, a portion of this additional revenue will be used to fund a new position to support Council’s mandate on providing timely communications to the community.

As part of the Spring Budget Adjustment, several one-time revenue and expense adjustments were included. These items are funded by additional external revenues or through existing reserves that do not impact the municipal tax rate.

Highlights include:

• $500,000 for Integrated Youth Services programming, fully funded through contributions from Kickstand
• $51,500 for a Seasonal Parks Bylaw Officer pilot project to support municipal bylaw enforcement, funded through the Operating Projects Reserve
• $150,000 for a Community Health Needs Assessment Study, funded through the Operating Projects Reserve
• $860,000 for a traffic signal optimization (“No Traffic”) pilot along Highway 16A and Jennifer Heil Way, funded through the Capital Projects Reserve.
• $455,000 for environmental creek bed erosion preventative maintenance, funded through grants and the Storm Water Reserve
• $250,000 for Eco Centre fencing improvements to address theft and trespassing, funded through the Waste Reserve
• $300,000 to construct a dedicated parent drop-off loop at Copperhaven School to improve traffic safety and reduce congestion on Grove Drive, funded through Developer Contributions (cash in lieu of Municipal Reserve)

The Spring Budget Adjustment allows the City to update its budget using the most current information before setting the annual property tax rate. Adjustments typically reflect changes in growth projections, revenue forecasts, and emerging priorities, ensuring the City remains financially responsible while responding to community needs.