ST. PAUL – The County of St. Paul is anticipating a five per cent tax hike, following approval of the proposed interim municipal budget for 2024, during the Dec. 12 County of St. Paul council meeting.
According to the agenda, most of the capital equipment council planned to purchase was removed from the preliminary budget. Those decisions will be discussed during the final budget discussions in March 2024.
But even with the cuts, CAO Sheila Kitz says there is an anticipated five per cent tax hike to help fund items that were not removed from the budget, as well as help fund increased costs indicated in the operating budget.
Administration is looking for ways to alleviate increased costs being faced by the municipality, “and to look for some further efficiencies which we plan to do between now and the final budget determination [in March 2024]," she says.
Finding these efficiencies may result in less of a tax increase for residents, says Kitz. A surplus from the County of St. Paul’s 2023 fiscal year could also be transferred to the 2024 budget – if there is a surplus. The County’s 2023 financial statement is still being completed.
Based on council’s direction, Kitz outlined the proposed Interim Operating and Capital Budget for 2024 during last Tuesday’s meeting.
The proposed budget estimates include Operating and Capital revenues at $37 million, and funding from reserves totalling $2.9 million.
Operation expenditures are pegged at $30 million, while capital expenditures come in at $8.7 million. Other expenditures include capital debenture repayments of $809,840.
The interim budget indicates a very small surplus of $3,655.
Coun. Louis Dechaine motioned to pass the interim budget. The motion was carried.
During the meeting, council also deliberated on other financial decisions, which included approving a Services Contract with Kitz that will begin on Jan. 1, 2024. Kitz will be retiring as CAO on Dec. 31.
During a Nov. 24 special meeting, council appointed Kitz as the interim CAO from Jan. 1 to 7.
The new CAO, Jason Wallsmith, is scheduled to begin on Jan. 8. Council requested Kitz assist with the transition. She agreed to help from Jan. 8 to 10.
She’s also agreed to provide consulting services as needed over the next year to the County at a rate of $130 per hour.
Coun. Ross Krekoski made a motion to approve the contract. The motion was carried.
Write off doubtful accounts receivable
Council also discussed writing off 18 outstanding invoices dating from 2013 to 2022 that they cannot collect, amounting to $153,051.52, which includes penalty charges of $78,678.49.
The County had budgeted $112,381.98 for uncollected invoices. Writing off the full uncollected invoices will result in an additional $40,669.54 of unbudgeted costs for 2023.
Owners of these invoices have been placed on the County’s “no services” list, says Kitz.
According to Kitz, the invoices continue to be uncollected for reasons like bankruptcy, a customer moving, time exceeded to go to court, no tax roll to transfer to, or statements are coming back as undeliverable. She said County staff made all efforts to collect the outstanding invoices.
Coun. Dale Hedrick moved to table the item and requested more information on all 18 outstanding invoices. As personal information will be reviewed, County will discuss the item in a closed session during its Jan. 7 council meeting.
