Clearwater County council has approved a one per cent tax increase over 2025 levels to help cover an expected $1.8 million budget shortfall.
The shortfall comes as final assessment numbers are in. When municipalities set their budgets in the fall, they’re estimates before actual assessment numbers are known. County officials say assessments were over-estimated for 2026.
The one per cent tax rate increase will add $650,000 in revenue, with the rest coming from a decrease in transfers to restricted surplus by $1,168,444 to ensure the budget remained balanced.
For the average $377,000 acreage with residence, officials say it will work out to an additional $38 a year.
Deputy Reeve Drew McKay was reluctant to support any tax increase, saying he hopes the county can be more accurate in its assessments in future years.
“It’s an unfortunate thing, we’ve seen over 35 per cent inflation over the past 10 years, and this county has only increased their taxes by only seven per cent,” he says. “It’s irresponsible of us to not start with some gradual increases at this point.”
Serhan says it is hard to estimate how budgets will flesh out. “There is always a difference, however in this case it was estimated high instead of low. What happens now is that dollars for future spending is lower and adjustments will be made to future plans as a result.”
Several money-saving options were presented to council including lowering commitments to resource road developments and to Nordegg renewal.
To make up the shortfall purely on tax increases, a three per cent tax increase would have been required.
Financial services manager Rhonda Sherhan adds, another tax pressure for residents is increasing provincial school tax requisition. Documents show the residential school requisition increased in 2026 by $473,193 which equates to approx. 3.7 per cent increase on the school portion of property tax for residential properties.
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“Council has worked hard to keep tax increases to a minimum over the years; however, there has been significant capital project obligations that have come with long-term financial commitments,” said Jordon Northcott, Reeve of Clearwater County in a provided statement. “This modest increase allows Clearwater County to address future needs in a responsible way, while remaining mindful of affordability for our residents, businesses, and the agricultural sector that our community depends on.”
The expected mail date for this year’s tax and assessment notice will be May 15.
Property tax notices will be mailed before the end of May, with payments due upon receipt. To help encourage payment of unpaid taxes, three penalty deadlines are set for Sept. 18, 2026, Dec. 18, 2026, and April 9, 2027.
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