ST. PAUL - A mill rate increase has been approved by Town of St. Paul council, along with its 2022 operating and capital budgets.
"First of all I would like to start off by saying thank you. Thank you for the time, thank you for the buy-in, and thank you for the feedback," said CAO Steven Jeffery during the April 25 regular council meeting. He noted that staff have appreciated the process and transparency that was part of this year's budget, alongside council.
The CAO also offered a thank-you to staff and directors, commending them "for the effort that they have put in."
"We've had some good conversations and we've had some really not so good conversations, and really just a reality check of where we are."
The 2022 operating budget has been a "difficult task to juggle," said Jeffery, citing post-pandemic challenges, inflation, and other unknown expenses, along with forecasting items such as policing.
"With a drop in assessment, and the increased expenses and maintaining the service level that our staff do for the Town of St. Paul, it is... my recommendation that we have a mill rate increase to residential of 0.951 and a non-residential mill rate increase of 0.856 in order to balance the budget for 2022. That would bring our cash flow in line with where we need to be for the year, with a strong focus on keeping our expenses well within reason," said Jeffery.
A surplus of $17.74 is being budgeted for 2022. Operating revenues total just under $18.5 million, and $747,100 will be funded from unrestricted reserves. Operating expenditures tally $18.3 million and $909,093 will be spent on capital debenture repayments.
Council sat down with administration several times throughout the budget process, passing information back and forth between administration and the Town's departments, said Mayor Maureen Miller. She noted that over the years, the Town has been able to look at the services it provides, and it continues to look at streamlining those services and finding efficiencies.
Part of this year's budget includes a debenture that was taken out for the new wastewater treatment plant. The mayor noted that while debentures are not new for the Town, there has been an increase in debentures for this year due to the completion of the project.
"You have to balance in, balance out," said the mayor.
Speaking to the waste water treatment plant, the mayor noted that council was thinking long-term and considering the needs of future generations when it decided to proceed with the project.
"Thank you to your crew... we kept challenging," said Miller to Jeffery, speaking about the budget process, adding, "We're all wanting the same for the whole community."
The mill rate increase will result in a $500,000 overall increase in taxes collected by the Town, which matches the payments for the debenture of the waste water treatment plant, specifically.
I think the staff did a "fantastic job" with the budget, said Coun. Nathan Taylor. "I think that this budget represents a goal to try to maintain services... as best we can."
But, Taylor added that he believes 2022 needs to be a year to review levels of services and how the Town does things, "that's why I bring up things like automated street sweepers." He noted that automation of some services isn't about losing jobs, but rather it's about maintaining services while competing with inflation.
"It's going to take, I believe, us being uncomfortable with making difficult decisions," said Taylor. His belief and goal for the municipality is to not just be on budget but to be below budget.
Coun. Ron Boisvert noted that when the provincial government cuts back on grants and funding, the money has to come from somewhere. He further noted that there have been very few new homes built within the Town of St. Paul and some businesses have been lost in recent years.
"It's tough," said Boisvert.
Miller echoed some of Boisvert's thoughts, noting that a lot has been downloaded onto municipalities by other governments and the Town is in a tough situation since it doesn't have much diversity in its assessment base.
"But, we all enjoy the services that we have here. I think that you've come up with the best option," said Miller to Jeffery.
A motion to approve the operating budget was carried.
Capital budget
All capital expenses will be funded by MSI and the Federal Gas Tax, soon to be called the Canada Community Building Fund. A combination of carry over funds from previous years and 2022 allocations have been considered to fund projects in 2022, heard council.
The Town does have three and five-year plans, and council has been able to stay true to the plans for the most part, except for passing things off a year or two, in some instances. Council respected the three-year plan, "it just might be a six-year plan," said Miller.
Sometimes, grants become available and it is important to act when the funds are there, so having some projects in the queue is good, noted Jeffery.
A motion to approve the 2022 capital budget was approved.
Projects marked in for 2022 Canada Community Building funds include the Aquatic Center HVAC rehabilitation project from 2021, the 2022 curb and gutter/sidewalk program, 48th street water and sewer main replacement, resurfacing of 52 avenue and 48th street, and water meters. MSI funds will support projects such as the purchase of a property on the west end of town for wetland naturalization, the purchase of a property along Highway 881 which has been deemed industrial area, street lighting, Lagasse Park playground replacement, other work at the swimming pool, and a variety of public works projects, among others.
Three readings of the supplementary assessment bylaw were also carried on Monday night. The Municipal Government Act (MGA) gives council the authority to prepare supplementary assessments for the value of any improvements on properties that have not been previously assessed during the year.
Normally, the supplementary assessment bylaw is approved earlier in April, ahead of a May 1 deadline. Jeffery noted that it was his oversight and he has marked the item down for future reference.
Director of Planning and Legislative Services Aline Brousseau noted that recent changes to the MGA allow for a supplementary assessment bylaw to be continuous now, which means the bylaw will not have to be approved each year.
After first and second readings, Taylor made a motion to proceed with third reading, which was carried unanimously. The third reading made by Coun. Boisvert was also carried.
The financial impacts of a supplementary assessment bylaw vary from year to year. Some years, it could mean upwards of $24,000 could be collected, like what was seen in 2016, and other years it is only a $400 impact, like what was seen in 2020.
First reading of the Tax Rate Bylaw was also approved during the April 25 meeting, as presented. Second and third readings will be done at an upcoming meeting.
