The Village of Alix council approved its 2026 operating budget, which will include a 2 per cent overall municipal tax increase, but also substantial tax hikes from the provincial government. The decision was made at the May 6 regular council meeting.

Chief Administrative Officer (CAO) Michelle White presented councillors with the draft budget, adding that although councillors agreed at their budget retreat to keep the mill rate the same as 2025, the CAO decided to lower it. She explained that separating the provincial government’s increased police tax necessitated Alix lowering its mill rate.

White stated during discussion that if Alix had stuck with the 2025 mill rate, local property owners may well have seen a $500 to $700 hike in their total tax bill, including provincial tax hikes.

“The budget being presented includes a reduced mill rate on residential taxes for the third year in a row, plus a reduction to the non-residential mill rate on the municipal portion of taxes,” stated the CAO’s report to council.

“This is necessary due to separating out the police tax requisition (0.4429 mill reduction to all properties).”

Readers should note a mill rate is a factor used, along with property assessed value, to calculate a tax bill.

“Residential taxes received an additional 0.3571 mill reduction to municipal taxes, compared to a 0.1858 mill reduction in 2025.” It was noted the municipal tax increase added up to an overall 2 per cent increase this year, or $28,000, with the CAO adding that the provincial government taxes on each property bill will be substantial, including an 18 per cent increase in education tax, plus seniors housing and police taxes on top of that.

Mayor Barb Gilliat stated she liked having the police tax on its own line on tax bills so hopefully the public knows this is a Government of Alberta tax hike, not one imposed by Alix council.

During discussion, Coun. Frank Laneuville noted that he was aiming for a zero per cent overall tax increase and wondered if staff and councillors would agree to finding more savings to make this a reality.

Both Coun. Ed Cole and Rob Fehr hesitated, stating that even though councillors know what the village’s financial situation is in 2026, they have no idea what will happen next year.

Cole stated the Government of Alberta is downloading more and more costs onto municipalities and no one knows how much the province will make municipalities pay next year. For example, it was stated several times during the meeting that Alix will be paying about $50,000 for police costs in 2026, and by 2029 it’s estimated that amount will double to $100,000.

Fehr agreed, saying that if Alix faces more costs next year, a small tax increase this year may soften the blow. “The province kind of painted us into a corner,” said Fehr.

The CAO pointed out the Village of Alix also faces other increases as well, including higher grass-cutting costs, more expensive street and crack-filling materials, and higher PRL requisition costs.

During discussion, councillors noted the budget process saw cuts made to many different departments, including programming, community services and recreation. No cuts were made to Public Works, the CAO noted, as inflation is already affecting that department’s budget enough.

Councillors also noted that since the village is currently paying off a debenture related to recent rehabilitation work done at the lagoon, transfers to reserves will be down somewhat this year.

They also mentioned they are looking forward to paving work on one street near the school in 2026.

Councillors unanimously approved the 2026 operating budget as presented, then passed all readings necessary to bring the 2026 tax rate bylaw into effect.

Correction May 8 @6:56am: It was stated that the Provincial Property Tax (Alberta School Tax) had increased by 18% in 2026. In fact the Police Tax increased by 18% and the Provincial Property Tax increased by 10%.