COLD LAKE - The City of Cold Lake has approved its 2025 capital and operating budgets, committing to a total of $73.4 million in expenditures as the city navigates the challenges of rising costs driven by inflation.
The budgets were approved on Nov. 26 and aim to balance necessary investments in infrastructure and services with efforts to minimize the financial burden on taxpayers, reflecting increased costs for utilities, fuel, RCMP policing, and public safety, according to the City of Cold Lake.
The budgets total just under $73.4 million in expenditures, including a $59 million operating budget and a $14.4 million capital budget.
Kristi Isert, General Manager of Corporate Services noted a forecasted average 4.39 per cent increase in municipal taxes, which will vary depending on individual property assessments.
“Of course, that number isn’t necessarily confirmed until we have all of the other information that will be considered when the tax rates are set, as well as different properties go up in assessment and down in assessment, so each property is often impacted a little bit differently,” she explained.
The budget includes a $6.61 million transfer to capital, incorporating $5.284 million from Improvement District 349 funding and $1.326 million from operating transfers.
Isert also highlighted the budget’s major contributors to the $1 million (1.77 per cent) increase from 2024 to 2025:
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$515,000 for RCMP operational cost increases
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$228,500 for utility fees, including carbon tax impacts
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$190,000 for the Commercial Security Contract
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$30,000 for increased fuel costs
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$14,000 for library and museum operational increases
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$50,000 for community capital grant funding
Mayor Craig Copeland also addressed the impact of the carbon tax on the budget.
“When you talk about the carbon tax, this $228,500 is just the increase in utility and the increase in carbon, but inside our expenses is a whole bunch of carbon tax,” he said.
CAO Kevin Nagoya confirmed the tax’s effect, stating, “That figure is inclusive of the carbon tax, which would be a large portion of that number. If the carbon tax was reduced or eliminated, property taxes could go down somewhat - if that decision was made.”
Capital Budget Highlights
The capital budget includes several key projects, such as the expansion of the Cold Lake Medical Clinic, with construction costs estimated at $4 million.
Additionally, approximately $2 million in supplementary funding has been allocated to the Public Works Operations Centre, raising its total funding to $31.5 million, with the overall construction cost projected at $37 million, according to information from the City of Cold Lake.
Other highlights of the budget include the addition of kayak storage units at the marina to meet rising demand, and essential maintenance and upgrades to City facilities. These upgrades include $600,000 for an Ice Plant Cooling Tower, glass replacement at the Imperial Oil Arena, renovations at the Cenovus Wellness Centre, and mechanical system updates in older parts of the Energy Centre.
A new park and playground will be developed in the Lake Ridge Development area to enhance recreational opportunities for residents.
The 2025 capital budget includes spending across a variety of initiatives, equipment replacement programs and departments, including:
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Fleet and Equipment Infrastructure - $1.2 million
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Environmental/Utility Infrastructure Improvements - $300,000
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Roadway Infrastructure Improvements - $5 million
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Facilities Infrastructure $7.3 million
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IST Infrastructure $35,000
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Recreation Infrastructure $460,000
