Mayor Judy Dahl is drafting a letter urging the Alberta government to reinstate grants in lieu of taxes for province-owned property.
In Olds, those properties include numerous social housing units such as duplexes, single-family dwellings and apartments that are not taxable.
Dahl hopes council will approve sending the letter.
"We've got to remember that the 75 social housing units in our community use all services. (They use) operations, like roads, recreation, social services. We would like to see them reinstate the grant in lieu of tax so that the cost ... is not downloaded on our community."
Section 362 of the Municipal Government Act states that Crown property cannot be taxed. However, the province has always provided grant money to municipalities equal to the amount that would have been paid in taxes, said chief financial officer Garth Lucas.
However, under the Alberta Housing Act, the province isn't bound to pay.
In 2015, the Progressive Conservative government, then led by Premier Jim Prentice cut the grant program in its budget.
When the NDP was elected, they made partial payments while the new government assessed its financial situation, Lucas said.
Based on 2014 assessment, the loss of the grant will cost the town $140,000 in revenue. That's as much as a 1.75 per cent tax increase. However, that was already accounted for in the town's 2016 operating budget.
"This is not a surprise. When council approved the 2016 operating budget, that grant in place of taxes was not included as revenue," Lucas said.
The Alberta Urban Municipalities Association (AUMA) is advocating for the province to reinstate the grant.
"I believe it's important ... that we support Alberta Urban Municipalities Association in drafting a letter to the province to let them know how this does affect us," Dahl said.
"I'm not certain this will be a battle we can win because the government's debt is so high ... however, my experience tells me we need to challenge this."
