ST. PAUL - While no decisions have been made, Town of St. Paul council is in for some tough decisions as it puts together next year's budget.
After presenting Town council with an alternate scenario for a budget during the Nov. 17 Committee of the Whole meeting, Chief Financial Officer Mitchel Bachelet referred to the proposed scenario as "scorched-earth," but reiterated council had to option to choose not to proceed with some of the changes being proposed.
According to the Town's first draft budget, the municipality would have a $783,000 deficit. In a bid to create a more balanced budget, Bachelet recommended a number of reductions in expenses and increased revenue streams.
The changes were proposed based on conversations that have taken place. The scenario presented on Thursday night included a 5.5 per cent tax increase, a number of expenses removed, and proposed a $253,000 surplus.
The take increase would be "across the board, everybody," said Bachelet. The increase would result in about $400,000 more in taxes being collected by the Town of St. Paul.
Starting with town council's expenses, Bachelet proposed a reduction in conferences, training and workshops, along with reducing the costs associated with local and regional meetings.
Town of St. Paul Mayor Maureen Miller responded, noting the proposed changes would mean two larger conferences would be taken out of the budget, or fewer councillors would attend.
In the Finance department, Bachelet, proposed a new revenue stream that would include $2 being added to residents who receive paper utility bills in the mail. Residents could opt out of the fee by signing up for e-billing, which would see utility bills sent by e-mail instead of traditional mail. While the expected revenue of $35,000 could be lower than budgeted if a lot of people sign up, it would in turn reduce costs associated with printing bills on paper, having staff prepare the bills, and the cost of postage, explained Bachelet.
In the Community Support area, Bachelet recommended cutting back on grants that are given to various community organizations, including funds that are provided annually to the volunteer-based group Champions for Change.
"Wow, that's tough," said Miller, in response to the proposal.
Councillors in attendance, including Ron Boisvert and Gary Ward, questioned the proposal, noting it would be very hard on groups that depend on the funding to do the work they do.
Coun. Nathan Taylor asked if a list of all community groups that receive funding from the Town could be made available at council's next meeting.
Bachelet also reminded council that any changes proposed can be temporary.
Municipal Enforcement was another department that Bachelet proposed changes to. The scenario would see the Town employ just one peace officer and the savings would mostly be seen in a reduction of wages being paid, said Bachelet.
Taylor asked if the budget included sufficient funds to train a second peace officer, to which it was noted that the scenario presented removes a position from the budget, so additional training may not be required.
Under the scenario presented, Planning and Development would see a reduction in staff, with the removal of the Canada Summer Jobs position, along with not hiring any other additional staff. Lower supplies and removing a rental vehicle request were also included. Savings in that department totalled about $74,000.
In the Marketing and Promotion category, Bachelet says the scenario shows a slight reduction in advertising, along with a $75,000 reduction in funds that are typically set aside to host Centerfield Music Festival.
One of the last areas that was discussed was the St. Paul Aquatic Centre. The scenario presented showed a 10 per cent reduction in staffing costs.
Taylor responded to the proposal, asking if the reduction would maintain the same number of lifeguards at the swimming pool. Bachelet answered, explaining he sat down with the swimming pool manager to discuss possible changes to the schedule at the pool.
Changes could include removing some public swimming times that have low attendance, for example. Change could be dependent on the time of the year, since some months are slower than others at the swimming pool.
Ward offered some thoughts on the proposal, noting the staff at the swimming pool have to be trained for the job, and the Town has to be careful not to lose those people.
Taylor noted an alternative solution would be encouraging the public to attend the pool more during the slow times, therefore increasing revenue through admission fees.
"It's a fragile thing," said Miller, in response to the proposal. While Bachelet again affirmed council could pick and choose which proposals to the budget it wanted to move forward with, the mayor noted that council expects all the "checks and balances" have been done before suggestions come before council.
RCMP and policing costs were a topic of discussion on Thursday night, although discussions with RCMP regarding contract details were done in closed session for over two hours. The Committee of the Whole meeting began at 6 p.m., and council resumed the public portion of the meeting at 8:20 p.m., moving into budget discussions immediately.
"This is scorched-earth," said Bachelet, referring to the proposed scenario. "It's pretty harsh."
Miller noted that the municipality cannot live in a deficit, and must work toward finding a middle ground.
The Town does plan to use some of its accumulated surplus, but Bachelet recommended against using more than what is necessary.
Miller compared the municipality to a "big household," adding, "We have to be accountable."
Speaking more optimistically, Bachelet said the Town of St. Paul has come a long way over the last couple of years and "there is some light at the end of the tunnel." For example, after 2024, debentures owed by the Town will paid down and about $500,000 will be freed up.
While no decisions were made on Thursday night, Taylor did recommend administration bring forward the $2 fee for paper billing recommendation to council's next meeting on Nov. 28. He said he thought the idea was "brilliant," and would like to see it implemented.
"There are so many unknowns in this next year," said Miller, as discussions wrapped up.
"It's tough to make up [almost] $800,000," acknowledged Bachelet.
