The Town of St. Paul has wrapped up its 2025 financial year with a clean audit and a .38 million year-end surplus, largely driven by capital funding rather than day-to-day operations.

Council reviewed the audited financial statements during a special meeting, with Barb McCarthy of JMD Group LLP confirming the Town received a clean audit with no major concerns.

While the final number shows a surplus, council heard that operations alone actually ran at a deficit of roughly $455,000. The overall positive result comes after accounting for nearly $2.9 million in capital grants and funding tied to infrastructure projects.

In simple terms, the Town’s books are healthy overall, but not because of excess operating revenue.

Despite the strong year, cash levels didn’t increase as much as some might expect. Administration explained that timing played a major role, with several government grants committed but not yet received. As a result, the Town is carrying significant receivables that have not yet been transferred into cash on hand.

Even with that delay, the Town remains in a solid position. St. Paul ended the year with just over $4.1 million in cash, along with additional assets including receivables and land holdings.

One of the biggest improvements came in the Town’s debt position. Net financial debt dropped significantly from approximately $3.6 million the previous year to about $420,000. Council heard that this is a strong indicator that the municipality is moving in the right financial direction.

Following the presentation, the council approved the audited financial statements with minor amendments.

The meeting also included a detailed breakdown of how the year-end surplus will be used. Council approved several transfers into reserves, including $1 million for recreation facilities and $500,000 for future fire equipment, along with additional contributions to water, sewer and general capital reserves.

These decisions reflect growing awareness of upcoming infrastructure needs. Recreation facilities were highlighted as a major priority, with council acknowledging that significant investment will be required in the near future to maintain and upgrade existing spaces.

Fire equipment was another key discussion point, with rising replacement costs becoming a concern. Council heard that, depending on the type of truck and configuration, future replacements could range from around $1 million to over $2 million.

During the meeting, councillors also pushed for clearer financial reporting going forward, particularly regarding policing costs. Currently, RCMP expenses are grouped under protective services, which includes fire and bylaw. Council agreed that breaking out policing as its own line item would give residents a clearer understanding of where tax dollars are going.

Another key discussion focused on reserves and how much of that money is actually backed by cash. While the Town has millions allocated in reserves, a portion of that funding depends on future land sales. Until that land is sold, not all reserves are fully funded with available cash.

Council also revisited the long-standing skate park loan, with roughly $129,000 still outstanding. Administration confirmed this will need to be addressed in 2026, with options including recovering the funds, forgiving the loan or converting it into a Town-owned asset.

Land sales were identified as a critical piece of the Town’s financial future. Without converting those assets into cash, some long-term financial plans will remain limited.

Despite these challenges, St. Paul still has significant borrowing capacity if needed. Council heard the Town could borrow up to $23 million within provincial limits, though any major borrowing would ultimately depend on taxpayer support and long-term affordability.

Toward the end of the meeting, council reflected on the lack of public attendance during the audit presentation. Despite being one of the year’s most important financial discussions, the room remained largely empty.

Council noted that opportunities still exist for residents to engage, including an upcoming public presentation of the financials.

The meeting adjourned after council formally approved both the audited statements and the reserve transfers, setting the stage for financial planning in 2026.