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2026 Budget Approved by Vegreville Town Council

FOR IMMEDIATE RELEASE

 

2026 Budget Approved by Vegreville Town Council

Vegreville, AB (December 17, 2025) –Vegreville Town Council has officially approved the Town’s 2026 Operating Budget and five-year Capital Plan following a Special Council Meeting held on Monday, December 15.

The development of the 2026 budget marked one of the most challenging budget cycles the Town of Vegreville has faced in recent years. Significant changes to accounting standards related to Asset Retirement Obligations (ARO) required the Town to recognize long-term infrastructure liabilities, resulting in a substantial reduction to reserves. At the same time, the municipality continues to experience rising operating costs across services. Balancing these pressures required careful and difficult decisions, all made with the long-term financial sustainability of the community and the needs of residents as the top priority.

“This was my thirteenth budget as a sitting member of Vegreville Town Council and my ninth as Mayor, and it was without question the most challenging budget process I have been part of. Council was faced with several significant financial pressures that were outside the municipality’s control. From Asset Retirement Obligation requirements to rising policing costs determined at the federal level, it often felt as though we were operating behind the eight ball before even beginning discussions around community priorities. At the same time, the cost of delivering municipal services continues to rise nationwide. Despite these challenges, Council remained focused on maintaining service levels while avoiding the kind of steep tax increases being seen in many other municipalities across the province. I would like to commend Administration for their diligent and thoughtful work in helping us strike that balance.”

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Tim MacPhee, Mayor, Town of Vegreville

 

Key Highlights of the 2026 Budget Include:

  • A 2.0% increase in net municipal taxes, equating to $201,719. A 2.0% increase in net municipal taxes collected does not directly translate to a 2.0% increase in mill rates or individual tax bills. This adjustment is primarily intended to capture assessment growth from new development rather than increase the tax burden on the average taxpayer.
  • A 15% increase to municipal fees and charges to help maintain the level of service residents expect amid rising operating costs. Even with this increase, Vegreville’s fees remain below the average of comparable municipalities, reflecting a continued commitment to affordability and fiscal responsibility.
  • A 2.0% Cost of Living Adjustment (COLA) for Town staff included in the operating budget. This adjustment aligns closely with Alberta’s 2025 average Consumer Price Index of 1.8%, as reported by Economics Dashboard Alberta.
  • A surplus of $188,288 in 2026 will be transferred to reserves to begin rebuilding balances impacted by ARO accounting changes and the financial effects of the COVID-19.

   “I would also like to thank our community partner organizations for their cooperation throughout the budget process. Groups such as the Vegreville Centennial Library Board, Prairie Tails Animal Rescue Society, Vegreville Transportation Services Society, and others worked hard to keep their funding requests at or below last year’s levels. While many of these organizations are volunteer-led and face the same rising costs as everyone else, they were willing to collaborate with Council and Administration to find solutions that allow them to continue providing valuable services without increasing their funding.”

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Tim MacPhee, Mayor, Town of Vegreville

 

Additional Budget Information:

  • A detailed summary of the 2026 Operating and Capital Budget can be read or downloaded HERE. Printed copies of the budget summary are also available upon request at Vegreville Town Hall.
  • The 2026 Fees and Charges Bylaw, outlining updated service rates, can be viewed HERE.
  • Budget deliberation meetings, which were open to the public and livestreamed on YouTube, can be viewed at the links below:

 

A video explaining how municipal tax dollars are allocated in Vegreville can be viewed here.

 

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About Vegreville: Home to the World’s Largest Freestanding Pysanka (Ukrainian Easter Egg), the Town of Vegreville is a growing community located approximately 100 kilometres east of Edmonton, Alberta, with direct access to Highways 16 (Yellowhead Highway) and 36—two of Western Canada’s key transportation corridors. With a steadily rising population and strong momentum in residential and commercial development, Vegreville continues to attract families, entrepreneurs, and investors seeking affordability, opportunity, and quality of life. Positioned for long-term growth in agriculture, agri-food processing, and industrial development, Vegreville offers high-speed fibre-optic internet, efficient permitting, and competitive operating costs. The Town’s Prosperity Industrial Park features fully serviced, investment-ready industrial land starting at just $50,000 per acre, making Vegreville one of the most affordable and business-friendly communities in Alberta for expansion and investment.

 

MEDIA INQUIRIES

Sabrina Curtis
Community Engagement Coordinator, Town of Vegreville
scurtis@vegreville.com