By rdnewsNOW staff

Adjusting to lower provincial funding

Innisfail council approves 2026 budget with no increase to mill rate

Dec 10, 2025 | 3:10 PM

Innisfail town council has approved an operating budget for next year with no increase to the community’s mill rate at this time.

The approval was made on Monday, Dec, 8, 2025, with council approving a 2026 operating budget of $31,875,555 and a capital budget of $6,505,000.

Council deliberated over three days in late November and directed the Town’s administrative staff to cut the (then) proposed budget so that no increase to the mill rate would be needed.

However, town officials note, it is projected that assessments will rise again this year, and council voiced concern over the added burden of an increased tax rate.

“The focus in budget 2026 is to ensure we maintain the service levels and the quality of life our residents and business owners expect. That is accomplished through thoughtful deliberation“ said Mayor Jean Barclay, in a press release. “It requires balancing the needs to adequately fund the operations of the Town of Innisfail and invest in capital projects focusing on critical core services, including water, wastewater, roads, and community safety”.

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Adjusting to lower provincial funding

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According to municipal officials, the town requires $10,930,574 from taxes to meet the obligations of the 2026 operating budget. In order to reach this level, town staff will determine mill rates in April once assessments are complete. Once assessments have been determined, officials say the town will set the mill rates to meet the funding requirement of the 2026 budget.

The town says the 2026 budget also foregoes any increases in franchise fees. These fees are charged by the town to utility providers, and the costs are most often passed on to consumers.

Earlier this year, town staff – with the assistance of Tagish Engineering – completed a draft State of Infrastructure Report (SoIR). Officials say this document identifies the value of all town-owned assets, including infrastructure such as roads, pipes, facilities, and equipment. According to the SoIR, the town needs to increase its contributions to infrastructure reserves in order to maintain its current state, giving the town’s assets an overall letter grade of “B” — classified as “Good”.

Town officials say the 2026 budget addresses the identified targets in the SoIR by increasing reserve contributions while also addressing some projects requiring attention in the near future.

Utility Rates

Town officials say user-based utility rates will increase in 2026, reflecting an increase from the regional water and wastewater systems. These costs are set by the regional authorities.

The town further points out, that residents will not see an increase in flat fees, which are used to bolster existing reserves allocated for repair and replacement of existing infrastructure. Officials say reserves ensure residents have a properly-functioning water delivery system in the future.

The town says newer water and wastewater lines benefit all residents by reducing costly emergency repairs and minimizing the down time caused by older, failing infrastructure.

Water rates are expected to increase this year from $3.26 to $3.59 per cubic metre. This increase is said to be due to a $.33 increase in the rate charged to the town by the Mountain View Regional Water Commission, the supplier of the town’s water.

Wastewater (sewer) rates will increase from $4.31 per cubic metre to $4.54 per cubic metre. Officials say this $.23 increase partially reflects a $.03 increase in rates charged by the South Red Deer Regional Wastewater Commission, with the remaining rate increase added as a result of the town’s cost of providing service.

2026 Capital Projects

The Town of Innisfail, like other Alberta municipalities, says it continues to see reductions in provincial funding, noting this trend is expected to continue. As a result, officials say town staff must look to other opportunities to fund capital projects.

Town officials explain that grants provide one source of funding, and town staff continue to identify these opportunities. With work to modernize the Innisfail Aquatic Centre underway, the 2026 capital budget focuses on a new set of key projects requiring investment.

The capital projects included in the 2026 budget are (budgeted project amount in parenthesis):

• 2026 Surface Improvements ($1,535,000)

• Sunterra (51 Street) Lift Station Replacement ($1,100,000)

• 48 Avenue Infrastructure Replacement, Phase 1 ($888,000)

• Gravel/Plow Truck ($500,000)

• Finance System Change Over ($400,000)

• Front End Loader ($355,000)

• Dodds Lake Lot Remediation ($300,000)

• 52 Avenue Microsurfacing ($250,000)

• Phone System Change Over ($250,000)

• Recreation, Culture, and Open Space Master Plan ($200,000)

• Pickup Trucks ($200,000)

• Self-Contained Breathing Apparatus Replacement – Fire Department ($175,000)

• Curling Rink Finishings ($110,000)

• Chipper/Mulcher ($80,000)

• Arena Unit Heaters ($70,000)

• Gravel Truck Box Replacement ($40,000)

• Electronic Sign ($30,000)

• Speed Signs ($12,000)

• Skidsteer Box Blade ($10,000)

According to town officials, the total capital spend for 2026 is $6,505,000. The town says it will receive additional funding from different levels of government, with provincial grants totalling $1,239,232 and federal contributions totalling $534,982.

As with last year, the town acknowledges that concerns still remain over the lack of infrastructure funding available to municipalities. Despite this, officials say the 2026 capital budget addresses immediate needs while helping assure the long-term viability of the community.

“Budget 2026 demonstrates council and administration are committed to Innisfail continuing to be a community of choice for residents and investors,” said Mayor Jean Barclay, in a press release this week.