COLD LAKE - Homeowners in Cold Lake will see an average municipal property tax increase of 4.58 per cent in 2025, after City council passed the final readings of the tax rate bylaw during its May 27 regular meeting.
The bylaw sets the residential and multi-family residential tax rate at 8.5295, and the non-residential rate at 13.5791, both reflecting an increase over last year.
The tax adjustments are expected to generate about $24.54 million to support the City’s $50 million operational budget, including a $1.33 million transfer to capital projects, according to the City of Cold Lake.
Kristy Isert the City’s General Manager of Corporate Services, explained that the bylaw received first reading on May 13, based on one of the options presented. However, after the presentation, a property assessment had to be adjusted due to the demolition of a large project, which slightly impacted the proposed tax rates.
She noted that the changes were reflected in the updated documents.
“The big difference between option nine and option four is that in option number nine the multi-family rate is less than the residential rate . . . In moving to option four as it's being presented, both the residential and the multifamily would have the same rate,” she explained to council.
However, under option four, multi-residential property owners will face a 10.46 per cent increase, due largely to a significant jump in assessments - more than 10 per cent this year, and 20 per cent over the last two years.
“Council may note that there's often a significant change that's felt a little bit more within that class . . . which has many more properties within it,” she explained.
Isert reminded council of the original justification for a higher multi-family tax subclass rate.
“That was recognizing that the multi-family properties are generally owned for the purpose of generating income, that owners could deduct property taxes from income tax purposes and write off expenses like other businesses.”
In addition to the main tax rates, the City also set higher tax rates for vacant residential and non-residential subclasses, which were 9.3825 and 14.9370 mills, respectively. These apply to properties that have remained undeveloped for over seven years despite being service-ready. An incentive program offers rebates if such properties are listed for sale.
Mayor Craig Copeland acknowledged the pressure both residents and the City are under due to inflation but explained the need to maintain essential infrastructure investments.
“We know that everything has become more expensive over the past several years and this puts pressure on household budgets and the City’s budget alike. We are attempting to pass as little of the increase on to households as possible while tackling several important infrastructure projects critical for the community’s future.”
Residents could expect tax notices in their mailboxes by May 30, with a June 30 payment deadline. The City was also preparing alternate plans to send out notices, due to the Canada Post strike situation.
