Stronger than anticipated growth in Spruce Grove will have a positive impact on the City’s budget, as outlined in the 2025 Spring Budget Adjustment that was approved by Spruce Grove City Council earlier this week.

In 2024, Spruce Grove’s population grew to just over 40,000 people and the City had another record-setting year for building permit values. This assessment growth will result in an additional $486,400 in property tax revenue, surpassing initial forecasts by reaching 3.93 per cent in assessment growth compared to the 2.93 per cent projected in the 2025 budget released in December. A portion of the additional revenue will be leveraged to reduce the forecasted tax rate increase from 3.9 per cent, approved by Council in December 2024, to 3.66 per cent, passing welcome savings on to Spruce Grove taxpayers.

“This Spring Budget Adjustment demonstrates the incredible growth of our city and how that growth directly benefits our residents. Being able to provide a property tax rate reduction when affordability is top of mind is a significant success. This adjustment shows that Spruce Grove is truly not just a city that people call home, but an in-demand and prosperous location for businesses to invest,” said Mayor Jeff Acker. 

A portion of the additional revenue will also fund three new positions within the City and an additional resource under the RCMP contract to address volume and capacity challenges.

Spring budget adjustments provide an opportunity to finalize the budget prior to setting the property tax rate for the year. Amendments to the budget are typically related to expected ongoing changes in growth projections and other revenue sources, and changes to ongoing operating expense items that are funded by the municipal tax requirement.