Town of St. Paul council remains undecided on whether residents will see a tax increase in 2026 after councillors rejected both a zero per cent increase and a proposed one per cent hike during interim budget discussions.

 

Council debated the issue at its Dec. 8 meeting, where administration presented two options for the 2026 operating budget. Leaving taxes unchanged would result in a projected surplus of about $118,000, while a one per cent increase would boost that surplus to roughly $206,000.

 

Push to Hold the Line on Taxes

 

Coun. Maurice Brousseau argued against any tax increase, pointing to the fact that property taxes in St. Paul have risen by roughly 25 per cent over the past five years. He said residents are already feeling the pressure and council should focus on finding alternative revenue sources instead of raising taxes again.

 

Brousseau also noted the town’s residential mill rate sits among the highest in Alberta, which he believes makes it harder to attract and retain both residents and businesses.

 

Coun. David Fodness and Coun. Nathan Rosychuk supported the zero per cent option. Rosychuk suggested the town could manage costs by deferring certain expenses, such as equipment purchases, while working to develop new revenue streams. He also said holding the tax rate steady would give council time to reassess the budget next year.

 

Concerns About Bigger Increases Later

 

Other councillors cautioned that freezing taxes now could lead to steeper increases down the road.

 

Coun. Roger Routhier said while the town needs to avoid large jumps like those seen in recent years, failing to raise taxes at all could mean playing catch-up later with increases of four or five per cent. He pointed to reserve funding as an example, noting the town currently sets aside $30,000 annually for future fire equipment, an amount he said falls far short of what is needed as costs continue to rise.

 

Coun. Norm Noel agreed, saying council needs to think beyond the immediate year and plan for long-term sustainability. He said smaller increases now could help avoid much larger hikes in the future.

 

No Decision Yet

 

After extended debate, council defeated a motion to keep taxes flat. A subsequent motion to approve a one per cent tax increase was also defeated, leaving the issue unresolved.

 

Council will revisit the discussion at a special meeting scheduled for Dec. 18, where it will continue deliberations on the town’s operating and financial plans and the 2026 interim budget.