ST. PAUL - The Town of St. Paul council and administration has started the process toward approving its interim budget, and ultimately its final 2024 budget.
During a Committee of the Whole meeting held on Nov. 16, Chief Financial Officer Mitchel Bachelet presented some preliminary information to council, with the draft budget showing a deficit of $600,000.
“That’s where we started at,” said Bachelet, adding the numbers are based on information after getting individual budgets back from each department.
He then presented possible scenarios to council, the first being increasing the water rate. CAO Steven Jeffery said it is an area administration believes needs to be investigated further, and the municipality still has work to do to understand the true cost of water.
A 10 per cent increase in the water rate is proposed in the scenario.
There was also discussion around forgoing a proposed Municipal Development Plan (MDP), which has a cost of $150,000 attached to it.
Another scenario has to do with the St. Paul Golf Course operations. Bachelet recommended that certain staff could be used in other areas of town operations in the off season.
Jeffery noted that this change could bring the Town one step closer to making money at the golf course, which he believes, “should be the goal.”
Bachelet noted that the golf course saw a $6,000 loss in the past season which is a big improvement over past season. Councillors commended the administration for this improvement.
Bachelet also recommended reviewing staffing at the St. Paul Aquatic Centre. He believes the scheduling of staff could be done differently and adjustments to the swimming pool’s schedule could be made, such as removing public swim times on some school days.
Bachelet believes changes can be made without putting anyone’s safety at risk, “I do think it’s possible.”
Mayor Maureen Mayor questioned if it may result in challenges around retaining staff if changes are too aggressive. She noted that if the swimming pool cannot retain staff, then it could result in decreased use of the pool and decreased revenue also.
“I think there is a balance,” said Jeffery, in response.
Coun. Brad Eamon also recommended caution, noting, “there’s a safety side to [it],” and one accident is all it takes to regret the changes. “Things happen fast.”
Increases
On the other side of the conversation, Bachelet spoke to some of the potential increases, such as a three per cent cost of living increase for staff that has been discussed. The increase would have a $160,000 impact on the budget, along with $24,000 in benefits.
These numbers do not form part of the $600,000 deficit included in the draft budget, heard council. With the three per cent increase added into the budget, the deficit grows to $850,000.
Increase insurance costs are among some of the more notable increases being seen by the municipality. In some cases, those costs are increasing five to 10 per cent, said Bachelet.
Tough choices
When speaking about the numbers, Miller noted the community often expects that same level of services from the Town, which is a challenge.
Coun. Nathan Taylor noted that if some services are reduced, he would not look at it as a reduction “forever," and would want to provide residents with a long-term plan.
Bachelet said he does not believe it will be possible to do a 10 per cent increase in taxes every year, while Taylor noted he does support doing a small increase year-over-year, instead of zero per cent when there is an election nearing.
Miller agreed a small increase is reasonable.
Council also heard that currently, the Town’s reserve funds are under the recommended guidelines.
“We can’t tax our way out,” said Taylor. He noted that all areas need to be looked at, noting the level of service provided by the Action Bus, snow clearing throughout town, and more.
“To me, everything is on the table,” said Taylor.
Coun. Ron Boisvert recommended looking at the sale of some of the land owned by the Town. It was noted that if the land is sold, it then becomes taxable revenue for the municipality.
The Wellness Centre was also brought up, and the fact that about $10,000 in repairs is needed at the building, which the Town is now the sole owner of.
“It’s on my radar, the Wellness Centre,” said Jeffery.
Administration pointed out that staff decided to cancel this year’s Christmas party, as a way to cut back on costs.
A special council meeting to discuss the operation and capital budget has been scheduled for Dec. 7 at 6 p.m.
*UPDATE - The special meeting set for Dec. 7 has been cancelled, as of Dec. 6.
