Lacombe Council Targets Low Tax Hike, Reduces Police Commission Size
Lacombe City Council voted Monday to cap the draft 2026 property tax increase at 2.3%, despite administration’s preliminary estimate of 6.25%. The decision came during a regular meeting that also saw a split vote on reducing the Municipal Police Commission's size and discussions on local issues.
Budget Direction Set
Council unanimously directed administration to prepare the 2026 operating budget with a property tax increase target of 2.3%. This figure aligns with the Alberta Consumer Price Index (ACPI) and the City's existing policy. Administration noted that achieving this target, significantly lower than the initial 6.25% estimate, will require “significant restraint and careful prioritization” of spending.
Additionally, Council approved a 2.3% cost-of-living allowance (COLA) increase for administrative staff wages, also tied to the ACPI.
Why It Matters
Residents can expect a lower proposed property tax increase for 2026 than initially forecast by city staff. The 2.3% target means essential services will need to be maintained efficiently, and new spending will be tightly controlled. The natural gas franchise fee, proposed to increase to 31% from 29.25%, generates over $1 million annually for the City and helps offset general taxation.
Citizen Input
During the open forum, Lacombe resident Al Neufeld raised concerns regarding a property tax late payment penalty. Neufeld requested a refund for the penalty, presenting information to Council on the matter.
Hannah Downton, owner of Downton & Co., presented plans for a community space in the privately-owned front courtyard of her building at 5104 50th Avenue. Downton is seeking partnerships to fund the construction, which she expects to complete by the end of October 2025.
The Debate: Police Commission and Truck Traffic
Council gave first reading to Bylaw 511.1, an amendment to the Municipal Police Commission Bylaw, with a vote of 6 in favour and 1 opposed. Councillor Thalia Hibbs opposed the motion. The amendment revises the Commission's composition to align with new provincial regulations, which limit membership to five for municipalities under 25,000 population. This change means a reduction in the number of public members appointed by Council.
Another split vote, 4 in favour to 3 opposed, occurred when Council scheduled a committee meeting for September 29, 2025. This meeting will discuss the potential restriction of heavy truck through-traffic on 50th Avenue between C&E Trail and Highway 2A, aiming to encourage greater use of the 34th Street bypass. Mayor Grant Creasey, Deputy Mayor Reuben Konnik, and Councillor Chris Ross opposed the motion.
Other Business
* Council approved a one-time contribution of $20,000 to the Lacombe Public Schools Enhancement Society. The funds, from the Community Builder Fund, support the École James S. McCormick School Playground Replacement Project, which serves students and the broader community.
* First reading was given to Bylaw 533, the new 10-year Natural Gas Distribution Franchise Agreement with ATCO Gas. The agreement proposes a franchise fee increase to 31% in 2026, up from 29.25%.
* First reading was approved for Bylaw 389.1, amending the Fire Services Bylaw. Changes include clarifying cost recovery for land improvements in manufactured home parks, removing the 'annual reset' for false alarm penalties, defining safe fire pit dimensions, and updating fees and fines.
* Bylaw 379.4, amending the Tax Penalty and Payment Bylaw, received second and third readings. This change revises tax payment deadlines from fixed calendar dates to the “last business day of the month,” providing clarity for taxpayers when deadlines fall on weekends or holidays.
* The updated Wolf Creek Channel Maintenance Policy was approved, and the previous 2012 policy rescinded. The new policy shifts maintenance activities for Wolf Creek segments outside City limits to a reactive approach, responding only to verified flow restriction complaints.
* A public hearing was scheduled for September 8, 2025, at 6:00 p.m. to discuss the proposed disposal of Municipal Reserve Land and its redesignation at 5132 60th Street Close. This follows a resident's request after landscaping encroached onto public property.
What's Next
Administration will now prepare the draft 2026 budget according to Council’s 2.3% tax increase target. The Natural Gas Franchise Agreement will proceed to public notice and Alberta Utilities Commission approval before returning for further readings. Public hearings for the Bylaw 400.74 redesignation of reserve land are set for September 8, 2025. The committee meeting on heavy truck traffic is scheduled for September 29, 2025.
Councillor Don Gullekson also gave notice of a future motion to pause work on the new Fire Hall at 4410 Woodland Drive and explore locating it at the north airport site. This matter will be discussed at a later meeting.