Town of St. Paul faces $571,370 deficit in draft 2025 budget

The town of St. Paul is grappling with a projected $571, 370 deficit in its 2025 Capital and Operating Budget draft, leading to discussions about which projects to prioritize and which may be delayed.  

The draft budget, presented at the November 12 council meeting, estimates $21.8 million in revenue against $22.4 million in expenses for 2025.  

One of the main challenges contributing to the deficit is a new requirement under Alberta’s Local Government Fiscal Framework (LGFF), which mandates municipalities to cover at least 20 percent of capital project costs with their own funds. The LGFF provides funding for infrastructure projects but has increased financial pressure on local governments to balance their budgets.  

The $3.4 million retrofit of the Clancy Richard Arena is a priority but depends on grant funding. The council is awaiting the outcome of a grant application, expected in 2025, before deciding on the project’s future.  

Council also deliberated whether to include $142,000 in the budget for the design phase of a proposed multi-season outdoor recreation facility. The town applied for a grant that could potentially cover $70,000 of the cost.  

Councillor Gary Ward expressed reservations about proceeding, emphasizing the need to prioritize essential infrastructure projects over facilities that may not benefit the entire community. Mayor Maureen Miller argued that without a study, the town can’t plant effectively or seek additional funding. Ultimately, council deferred further discussions until input is gathered from the Parks and Recreation advisory group.  

Several critical infrastructure projects were highlight including, paving 45th Avenue and 43rd Avenue, at costs of $450,000 and $300,000, replacing the sewer line on 47 Avenue, between 46 and 47 Street, the line serves Extendicare and the St. Paul hospital. Town council agreed to include the sewer line replacement in the 2025 Capital Budget and will revisit the paving projects as budget discussions continue.  

The town has until early 2025 to finalize both the operating and capital budgets. If not completed by January 1, council may adopt an interim budget, with the finalized version expected in the spring.