Thanks to some unforeseen circumstances, Lacombe County is looking at a nearly 1.4 million dollar shortfall in their 2017 operating budget.

Council is now looking at options to make up that money, looking at increasing the tax rate for businesses, property owners, taxing newly constructed buildings, or dipping into their savings.

Lacombe County Reeve Paula Law explains why their interim budget was accurate at the time, but now needs adjusting.

"When that interim budget came, that was the most accurate information that we had at the time. The shortfall is unfortunately due to one particular rate payer that we thought was coming on board by December 31st. Again through no fault of theirs or ours, we went with the best info we had at that point in time. So there's a shortfall, and we're looking at the best way we can mitigate that for everyone involved."

The main reason for the shortfall is because they had anticipated that NOVA chemicals new petro-chemical facility would be up and running and therefore taxable, but that hasn't been the case.

Reeve Paula Law says they're now faced with a shortfall of about 1.4 million dollars which they could make up for by implementing a supplemental tax on any new properties this year.

"Another option is to increase tax rates. Whether it be non-residential, or across the board on everyone, that's an option we are looking at. Our interim budget came in at 1 per cent, again this option we're looking at. The other is to draw from our reserves. Which would mean we're putting less money away for the future."

Law says they plan to meet with Nova Chemicals first to see if it would be possible to tax their site as if it had been in operation from the start of 2017.

If not, they'll choose another option to even their operating budget.