St. Paul property owners are bracing for a 4.5 percent increase in their property taxes this year, as the town council approved the final 2024 operating and capital budgets on April 22. While the decision aims to address operational needs, it comes amidst concerns over funding for policing and the sustainability of the municipality’s financial framework.
Despite an overall one percent increase in assessed property values in St. Paul, the incremental rise fell short of meeting the town’s operational requirements. “It was in a positive direction,” remarked Chief Financial Officer Mitchel Bachelet regarding the assessment values, “but it just wasn’t a lot.”
The 2024 budget outlines $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. Achieving this balance required meticulous scrutiny, noted CAO Steven Jeffery, following a “lengthy review” process.
Mayor Maureen Mille emphasized the budget’s meticulousness, highlighting the efforts to overcome an initial $80,000 deficit and allocate $52,807 to savings. “It’s not easy when we are looking line by line trying to find everywhere from a $1,000,” Miller stated, acknowledging the challenges faced during budget deliberations.
A significant portion of the property tax revenue, totalling $8.46 million, is allocated to protective services, including a $2.2 million RCMP contract. Miller underscored the strain on the budget due to policing costs and expressed concern over the sustainability of current funding models. “When you are in small municipalities such as ours,” Miller explained, “And you hit that threshold of over 5,000 people, we have to pay for that RCMP funding.”
Jeffery echoed Miller’s sentiments, calling for provincial acknowledgment of the challenges faced by municipalities in funding essential services. He criticized the current policing formula, which he deemed unsustainable for municipalities like St. Paul.
In addition to operating expenses, the capital budget for 2024 faces constraints, with all expenses to be funded through grants. Projects such as curb, gutter, and sidewalk improvements, playground upgrades, and transportation enhancements will receive funding from the Canada Community Building Fund and the Local Government Fiscal Framework grants.
Among the capital allocations, $55,000 is earmarked for essential upgrades at the curling rink, while funds have been set aside for potential projects like an outdoor rink space and an off-leash dog park. Jeffery emphasized the importance of public engagement in developing these initiatives, ensuring they align with community needs and aspirations
As St. Paul navigates its financial landscape, balancing the demands of essential services with limited resources remains a formidable challenge. The town looks toward collaborative solutions and provincial support to address pressing fiscal concerns and sustain its growth and development aspirations.