ST. PAUL – The Town of St. Paul is projecting a $571,370 deficit, according to the draft 2025 Capital and Operating Budget, and that could mean some projects are put on the back burner – including a multi-season outdoor recreation facility.
According to the draft budget presented at the Nov. 12 council meeting, the Town is projected to have $21.8 million in revenue, and currently projects $22.4 million in expenses in 2025.
Chief Financial Officer Mitchel Bachelet said one factor contributing to the projected deficit is the new provincial policy under the Local Government Fiscal Framework (LGFF) that requires municipalities to contribute at least 20 per cent of capital project costs from their own funds. The LGFF is the provincial funding that provides Alberta municipalities money for infrastructure projects.
To help balance the budget, council considered what capital projects to prioritize.
“I'm not looking to solidify the capital budget. I'm not looking to complete the capital budget,” CAO Steven Jeffery told council. “However, I do have a few projects on here that if we are in alignment and we are looking to start and complete in 2025 – I need time to get these started.”
One of the project priorities Jeffery presented to council includes the $3.4 million Clancy Richard Arena retrofit project. The project has been submitted for a grant, but the outcome may not be known until mid-2025. Council agreed to revisit the project's viability once the grant status is confirmed.
Multi-season outdoor recreation facility
Jeffery also asked council members if they want to include the design phase of the approximately $800,000 multi-season outdoor recreation facility in the budget, which would be $142,000.
The Town applied for a grant that if successful, would cover $70,000 of the $142,000 amount.
Council expressed hesitation about prioritizing the project.
While Coun. Gary Ward said he would like to see the project move forward, he acknowledged there are other priorities, like sewer and infrastructure repairs.
“We are cutting back on a lot of other things . . . and then we're throwing out [an arena] in there that is going to be not used by everybody in the community,” acknowledged Ward.
Mayor Maureen Miller said she is of a different opinion, noting many members and organizations in the community are excited about the opportunities the year-round outdoor recreation facility could provide.
“If we don't study what it would cost to build, then we don't even know how to plan or ask for grant money to match it, if we don't have anything other than a vision,” she said.
Ultimately, council agreed to defer further discussion on the project until input is gathered from the Parks and Recreation advisory group.
Paving and sewer line
Council will consider prioritizing the paving of 54th Avenue for $450,000 and 43rd Avenue for $300,000.
“This has been on the plan for a number of years,” said Jeffery.
He said replacement of the sewer line on 47 Avenue – between 46 Street and 47 Street – also should be a priority. The line runs from Extendicare to the St. Paul hospital.
The sewer line may be one of the oldest sewer lines in the municipality, he said.
“It is in awful need of replacement.”
Council agreed to include replacement of the sewer line in its 2025 Capital Budget and will discuss the budget more in the future.
Council has until early 2025 to adopt both the operating and capital budgets. If the budget is not finalized by Jan. 1, council may approve an interim operating budget until the official budget has been approved in the spring.
