The City of Cold Lake is intensifying pressure on the federal government to act on a major court ruling that sided with the municipality in a high-stakes dispute over military base taxation.
More than 16 months after the Federal Court of Appeals ruled in Cold Lake's favour, the city says Ottawa still hasn't made a formal decision on how to recalculate Payments in Lieu of Taxes (PILT) for Canadian Forces Base Cold Lake—a gap that has left the municipality out approximately $20 million since 2012.
The Core Issue
Unlike standard properties, federally-owned installations don't pay municipal property taxes directly. Instead, the federal government makes PILT payments to compensate municipalities for services provided to those properties—including water, sewer, roads, and emergency services.
Cold Lake's Chief Administrative Officer Kevin Nagoya says the problem lies in how Ottawa calculates the base's assessed value. "The federal government has been systematically deducting infrastructure costs—water systems, sewer lines, facilities they own—from the property's valuation," Nagoya explained. "That methodology simply doesn't have a sound rationale, and it's why we're in this dispute."
The July 2025 court decision found that Canada's busiest fighter base had been significantly undervalued by a former federal minister. The ruling suggested the assessment methodology was fundamentally flawed.
Broader Implications Across Canada
What happens in Cold Lake could reverberate across the country. Dylan Bressey, president of Alberta Municipalities, emphasized that communities nationwide depend on PILT payments to offset the costs of servicing federal properties.
"It's fundamentally unfair for one community to shoulder the financial burden of supporting critical infrastructure for our men and women in uniform—especially when that includes providing fresh, clean water and wastewater services," Bressey said. "PILT calculations must account for the full cost of these services."
Nagoya flagged another concern: evidence presented during the legal process. Cold Lake challenged the accuracy of comparisons made to CFB Suffield in Cypress County, arguing that court documents contained misleading information about how infrastructure cost deductions were being handled at other military bases.
Waiting for Action
While the Federal Court of Appeals has spoken, Cold Lake officials say the federal government has provided no timeline for implementing a new assessment framework or releasing retroactive payments. The city continues to advocate for resolution, arguing that every month of delay compounds the financial impact on municipal services.
For Calgarians and Albertans watching this dispute, the outcome may have implications beyond Cold Lake—potentially affecting how all municipalities negotiate compensation for federally-owned properties in their jurisdictions.
This article is based on reporting from CBC Edmonton. For the full original story, visit CBC News.