The Town of St. Paul is projecting a small surplus in its 2012 final budget of $337,301. Mill rates will also change this year, with residential mill rates increasing from 8.50 to 9.25 mills, while commercial mill rates will increase from 18.24 mills to 18.5 mills.
Mayor Glenn Andersen notes that those who see an increase in their taxes may not be happy, adding, “Nobody ever likes taxes. I don’t think we’ll ever be popular.” But the Town of St. Paul’s goal every year is to prevent major spikes in taxes, he said.
In 2006 and 2007, the mill rate was over 14 mills, but when St. Paul’s property market took off and house prices rose, council dropped the mill rate to under nine mills, to keep residents and business owners from getting hammered with big swings in their taxes.
This year, “the majority of assessments did go down,” confirmed municipal assistant Cindy Litwinksi, adding that perhaps 10 per cent of the town’s residents may see an increase on their assessments, for instance, if they have made improvements to their property in the past year.
The town aims to collect 60 per cent of taxes from residential taxes, and 40 per cent through commercial taxes, said Andersen. “We try to play the game of keeping it right in the middle,” he said. “This year, we’re pretty darn close.”
A little more than $7 million will be collected through municipal, residential and commercial taxes this year.
The total revenue this year from inputs such as water sales, mobile taxes, user fees and grants, was $5.12 million, with expenses weighing in at a little less than $9.4 million, and capital expenses from operations adding up to $852,712. After providing the MD Foundation with $133,700, and the Education Property Tax requisition at $1.5 million, the town was left with the $337,301 surplus.
Andersen notes that although there is a projected surplus, unexpected expenses can crop up at any moment that would eat up those funds. “At any given time, $330,000 is nothing.”
The major expense this year, of course, said Litwinksi, is the town’s contribution to the medical centre. Out of its 2012 budget, the town will be taking $1.5 million from reserves and $982,000 from its Municipal Sustainability Initiative (MSI) provincial grant to contribute to the wellness centre.
Other projects from this year include redoing the sewage lift station and sewage screening unit to accommodate population growth, at a cost of about $300,000; this will be covered by the federal gas tax, said Litwinksi.
A few streets will be resurfaced this year, including 48 Avenue from 40 Street to 42 Street, and 41 Street from 50 Avenue to 52 Avenue. The back alley behind the old medical clinic and the back alley behind Evergreen Stationers are getting run down and will be resurfaced as well, said Litwinski.
There are always projects and priorities for the town that eat up funds, with Andersen saying that running a municipality is like “running a house, times 10 . . . It’s a phenomenal business running a municipality.”
