ST. PAUL - St. Paul property owners can expect a 4.5 per cent increase in their property taxes this year. Town of St. Paul council approved the final 2024 operating and capital budgets and gave first reading to this year’s tax bylaw April 22.
While there has been an overall one per cent increase in assessed property values in the municipality, it was not enough to meet the Town’s operational needs.
“It was in a positive direction,” chief financial officer Mitchel Bachelet said of the assessment values, but “it just wasn’t a lot.”
This year’s budget reflects $20.3 million in operating revenues, $19.4 million in expenditures, $917,000 in capital debenture repayment and $52,807 transferred to unspecified operating reserves resulting in a net zero balance.
The position was reached after a “lengthy review” the week prior, CAO Steven Jeffery said.
That review, according to Mayor Maureen Miller, started with an $80,000 deficit, so getting to the point of being able to offer a balanced budget, including putting $52,807 into savings, speaks to the detailed work that was undertaken.
“It’s not easy when we are looking line by line trying to find everywhere from a $1,000. It’s a tough process, so I appreciate where council has gotten to, as well as yourselves (administration) to get to this point.”
With total property tax revenue budgeted at $8.46 million, Miller said it is important for the public to know that close to $2.4 million of the budget is allocated to protective services, which includes a $2.2 million RCMP contract.
“If the community is expecting this level of service that we are presently providing, it has to be somehow paid for. We have slim-lined, stretched that as far as we can and have deferred investment and moving forward even, in order for us to even break at 4.5 (per cent) and still put money in a savings account. It is a very tight budget.”
A half per cent increase on the Town’s tax base equals approximately $43,000, according to Bachelet said, adding, “With the total tax revenue we do bring in, about 25 per cent of it goes to pay our RCMP costs.”
Miller said the RCMP costs are shocking.
“When you are in small municipalities such as ours and you hit that threshold of over 5,000 people, we have to pay for that RCMP funding. Out of that, we only get $50,000 returned to us (from the province). This is just not sustainable.”
Jeffery agreed, saying it has come to the point the municipality is unable to put money into savings or has to cut services to pay the policing bill – something that needs to be acknowledged at the provincial level.
The province’s position that “you need to put 20 per cent of your tax base into your capital projects, well, there’s a little bit of work that needs to happen on the other side,” Jeffery noted, saying it is not feasible with the province’s current policing formula for a municipality with the tax base St. Paul has, to achieve this. “You can’t expect one thing and do the other.”
Bachelet said it is also important to recognize that different municipalities have different tax bases and there are those with similar populations to that of St. Paul that are able to generate more tax revenue. “A town of the same population can have double the tax assessment. It’s not apples to apples.”
Capital budget
This year’s capital budget is also tight with all capital expenses to be funded through the Canada Community Building Fund (CCBF) and the Local Government Fiscal Framework (LGFF) grants.
A total $373,294 from CCBF is allocated for curb, gutter and sidewalk improvements, the Kinsmen Park playground and transportation upgrades.
The Town is putting $915,510 in LGFF grant money into several projects including: $102,000 for golf cart pathways, signage and benches at the golf course; $204,510 for paving at the airport; $270,000 for paving east end curves and storm sewer upgrades on 53 Ave; and transportation infrastructure upgrades of $105,000.
A $55,000 allocation was made for four over-ice furnace units at the curling rink.
“The curling rink did run on three units this winter, however it is recommended from administration as well as the curling association, that those be replaced with the correct sized units,” Jeffery said.
The Town will be working with the curling association to determine if there is a cost-sharing model. Units in the lobby area likely also need to be addressed.
An initial $60,000 towards potentially re-creating an outdoor rink space (OTJ ) is also on the list.
“I asked council for some capital dollars to get this project not only started but get it to a place where it is more shovel-ready to a grant entity,” Jeffery explained.
An off-leash dog park is on the books for $125,000, with Jeffery indicating more public engagement will likely be necessary on developing the project.
“It’s one we obviously want to do, and we want to do it right. Rather than investing in re-creating a new space, it is trying to redefine what one or two existing spaces could be turned into an off-leash dog park.”
Capital funding of $30,000 has been allocated to an exterior paint job for the Clancy Richard Arena.
