BURSTThe District of Houston faces a $1.2 million municipal budget shortfall thanks to the closure of Canfor’s sawmill here because the mill property is no longer considered an active enterprise making it possible to collect taxes based on its previous industrial assessment.
And that could mean the District will dip into a budget stablization reserve of $1.65 million set up in January 2023 for just such a situation.
“A core priority of council is to minimize the financial impacts this asssesssent change has on residents while maintaining service levels for utilities, public safety and infrastructure maintenance,” the District said in a Jan. 19, 2026 release.
The $1.2 million revenue gap represents approximately 20 per cent of the District’s annual taxation income.
The release indicated District staffers are looking at various options to deal with the revenue shortfall.
The District also set up a $1.65 million emergency fund at the same time as the budget stabilization one.
At the time the stabilization and emergency funds were created, mayor Shane Brienen called both a worthwhile move.
“And I think every community that’s heavily reliant on industry should have a plan like that,” Brienen said.
Just four months after bylaws were passed authorizing the creation of the two funds, Canfor announced it was closing its mill.
The company did, however, continue to pay property taxes until the industrial assessment was changed.