During the county of St. Paul council meeting on December 12, approving the proposed interim municipal budget for 2024 set the stage for an anticipated five percent tax hike. Despite removing most of the capital equipment from the preliminary budget, the council needs to address the increased costs indicated in the operating budget.
CAO Sheila Kitz explained that the decisions to cut certain capital expenses were made in anticipation of the final budget discussions scheduled for March 2024. Kitz’s expressed hope that these efforts might result in fewer tax increases for country residents. Additionally, any surplus from the county’s 2023 fiscal year, yet to be finalized, could potentially be transferred to the 2024 budget.
The proposed Interim Operating and Capital Budget for 2024, outlined during the meeting, includes operating and capital revenue of $37 million, funding from reserves totaling $2.9 million, operating expenditures of $30 million, and capital expenditures of $8.7 million. A small surplus of $3,655 is projected in the interim budget.
Councilor Louis Dechaine moved to pass the interim budget during the meeting, and the motion was carried out.
The council also addressed administrative changes. A Services Contract with CAO Sheila Kitz was approved, effective January 1, 2024. Kitz is set to retire on December 31 and will assist in transitioning to the new CAO Jason Wallsmith, scheduled to begin on January 8. Kitz has also agreed to provide consulting services to the county at $130 per hour for the following year.
The council deliberated on financial decisions, including the write-off of 18 outstanding invoices totaling $153,051.52, dating from 2013 to 2022. The uncollectible amounts include penalty charges, exceeding the budget for uncollected invoices. Owners of these invoices are on the county’s “no services” list.
CAO Kitz clarified that the invoices remained uncollected due to reasons such as bankruptcy, relocation of customers, exceeding the time limit for legal actions, absence of a tax roll to transfer to, or undeliverable statements.
Councilor Dale Hedrick moved the item to the table for further review and additional information on all 18 outstanding invoices. A closed session at the January 7 council meeting is scheduled to discuss this matter, considering the sensitive nature of the personal information involved.