Vermilion council has given first reading to its 2026 mill rate bylaw, but administration says the final numbers are still subject to change as the Town waits for key information from the province.

The bylaw sets the rates of taxation to be levied against taxable property for the 2026 year, but administration stressed during the meeting that the version brought forward this month is only an initial estimate.

“This is the first reading of the mill rate bylaw,” administration told council, explaining that some figures remain preliminary while the Town waits on finalized provincial data.

Those outstanding pieces include the final provincial education property tax requisition and designated industrial property assessment details.

Administration said the Town had already reviewed the assessment roll, the municipal tax requirement in the 2026 budget and council-approved budget adjustments before bringing forward the bylaw for introduction.

There will still be changes before final approval.

“There will be some changes before we will see this bylaw brought forward again,” administration said.

Council also heard more detail on the province’s education property tax increase. While the province has described an overall 15 per cent increase, administration said the actual impact differs from one municipality to another based on property values and the equalized assessment process.

For Vermilion, administration said the current estimate is about a six per cent increase in the provincial education tax portion.

Council members used the discussion to ask broader questions about reserves, tax clarity and timing. One councillor thanked administration for breaking the information out more clearly than in past years, while another asked about reserve contributions after council’s recent budget adjustments.

Administration said the Town had originally planned to place roughly $900,000 into reserves as part of a longer-term infrastructure strategy, but that amount had dropped significantly following budget changes.

After the adjustments, administration said the projected reserve contribution is now about $340,000.

Council also asked about grant-in-lieu payments from provincial properties and when those payments typically arrive. Administration said it would bring that information back at a future meeting along with some historical timelines.

Administration recommended proceeding with first reading now so the bylaw can be formally introduced to the public, with second and third reading expected in April once more accurate provincial figures are available.

“First reading is deemed to be an introduction of a bylaw to the public and on the table for council,” administration said.

If that timeline holds, the Town hopes to process tax notices and have them mailed by no later than May 15.

Council ultimately approved first reading only.

The bylaw will return for final consideration once the province provides the remaining tax and assessment information.