Lacombe City council adopted next year's $35.6-million operating budget, which will include a 1.3 per cent property tax rate increase.

For a house assessed at $373,033, the owner would pay an extra $30.28 for the year.

Since last presented to council, the budget includes a $10,000 increase to the FCSS External Grant and a $10,000 increase to the Lacombe and District Historical Society.

A $10,000 contribution to Big Brothers Big Sisters that was initially included, was removed.

The budget includes a $2.1-million transfer to reserves, which Mayor Grant Creasey said were used to keep the rate increase to a minimum.

“We’ve tried to add as much to the reserves as we could but they’re by no means anywhere near what according to policy what we should put towards them,” Creasey said. “But that’s one of the mechanisms by which we’ve kept the operational increase down.”

Other highlights include a one per cent increase for Lacombe Police Service members and a 0.4 per cent cost of living adjustment for city workers.

The capital budget totals $18 million. Extending water and sewer service to the city’s west end will cost $15 million.

The last council decided to approve $6.6 million in debenture spending to pay for its share of the project, seeing as the county would be contributing to it as well.

“This was seen as a viable time to go ahead because of the county’s involvement. I’m pleased that was the direction that was taken and hopefully in time we can realize some exciting new developments out there,” Creasey said.