Council passes 2026 Capital and Operating budgets

Cold Lake, AB – After completing its post-election orientation process, Cold Lake City Council passed its 2026 Capital and Operating Budgets at its Regular Council meeting held Tuesday.

The budgets were passed with a total of just under $74.6 million in expenditures. The 2026 Operating Budget was passed at just over $61 million, inclusive of a transfer to the capital budget of $7.2 million. The Capital Budget includes just over $13.2 million in funding.

A forecasted average 2.48 per cent increase in property taxes is expected to balance the budget. Property taxes are levied proportionate to the assessment of property in the community. An individual property’s municipal taxes may increase or decrease at a different rate, depending on each property’s assessment increase or decrease relative to other properties.

The final tax increase is also dependent on growth in the community. Administration favours a conservative estimate of growth, meaning that the final tax increase is generally lower than forecasted. Tax rates are set by Council in May each year.

“Council set a target of bringing any tax increase in our community in line with inflation,” Cold Lake Mayor Bob Mattice said. “With a new council there was a lot to learn in a short time. I am proud of the work this Council did to pass a thoughtful budget that preserves our services while minimizing the tax increase that is passed on to the general public.”

The 2026 budget reflects significant increases in the cost of policing, the cost of labour under the city’s collective bargaining agreement, persistent increases in the cost of licencing software required to run critical municipal functions and cyber security and debt servicing required to finish the city’s capital projects. The increase in policing has risen sharply and steadily since the city crossed the threshold population of 15,000. This requires that the city pay for 90 per cent of its RCMP policing costs and 100 per cent of fleet, equipment, and operational supplies.

During the budget process, Council also took a hard look at its user fee structure. Most fees are budgeted to increase by roughly 2 per cent in 2026 to keep pace with inflation, while some fees may see increases for market adjustments based on market comparators for usage of recreational facilities.

“When it comes to user fees, Council took the direction that the cost increases were best taken on by users rather than by property owners in the city generally,” Mattice said. “The city’s user fees remain very competitive: Even after the increases, we will be significantly cheaper than similar fees found in other communities – both within our region and throughout the province. Given the pressure that inflation is putting on household budgets, Council did not think it was fair for inflationary pressure on user fees to be subsidized by the community as a whole.”  

Anticipating an approximate 2-per-cent annualized inflation rate in Canada by 2026, Council has aligned the municipal property tax increase accordingly, ensuring the continuation of existing municipal services and staffing. The capital budget prioritizes essential maintenance and fleet sustainment, alongside fulfilling previous financial commitments to ongoing city capital projects.

“While the wastewater treatment plant and Public Works Operations Centre are not the most exciting, public-facing projects, they are crucial to the efficient delivery of public services,” Mattice said. “It is encouraging to see these take shape, and we look forward to the commissioning of the new wastewater treatment plant in the near future.”

Overall, the City of Cold Lake’s operating budget increased from $59,038,035 to $61,334,897 between 2025 and 2026. A few of the standout budget items include increases of:

-       $1,394,135 to service debt required to fund the City’s capital projects

-       $867,000 in additional wage and benefit costs as per the city’s collective bargaining agreement

-       236,400 in increased RCMP operational costs

-       $113,000 in increased software licencing costs.

With the Lakeshore Drive Improvement Project close to completion and the wastewater plant nearing commissioning, much of the capital budget was dedicated to completing the Public Works Operations Centre.

The 2026 Capital Budget will see the funding in place for the purchase of an MRI machine up to $1.75 million, as well as upgrades to the city’s recycling process, crucial maintenance at the Energy Centre, and an additional $6.4 million in funding for the Public Works Operations Centre. The budget has also funded upgrades and maintenance to the Cold Lake Golf and Winter Club, as well as improvements to several community parks.

The 2026 Capital Budget includes spending across a variety of initiatives, equipment replacement programs and departments, including:

• Fleet and Equipment Infrastructure $2,970,000
• Environmental/Utility Infrastructure Improvements $645,000
• Roadway Infrastructure Improvements $1,800,000
• Facilities Infrastructure $7,553,000
• Recreation Infrastructure $290,000

A full breakdown of projects in the 2026 Capital Budget can be found on the City’s website at www.coldlake.com/budgets. Further details about major capital projects and their progress can be found at www.coldalke.com/projects.