Residents questioning how the Town of St. Paul can report a multimillion-dollar surplus while also increasing taxes are not wrong to ask, according to Mayor Glenn Andersen.

During a recent interview with Lakeland Connect, Andersen said much of the confusion comes from how municipal budgeting works compared to household finances.

“It’s our right as a taxpayer to question our taxes,” said Andersen.

Council recently approved a 1 percent municipal tax increase for 2026 and discussed a previously reported municipal surplus of roughly $2.4 million during budget deliberations.

Andersen said the number can be misleading without context because much of that money is already committed to reserves, infrastructure replacement and future capital obligations.

“A lot of people don’t understand municipal budgets because you don’t do that at home,” he said.

He compared municipal budgeting to household planning, in which families prepare separately for major future purchases and repairs.

“You budget for your car, everything. You budget for all this stuff,” Andersen said.

He explained that municipalities must plan years in advance for expensive infrastructure and equipment replacement projects, including roads, utilities, recreation facilities, and fire equipment.

“Your capital budget would be, ‘Do I want to build that new deck? Do I want to build the new driveway?’” He said.

Andersen also clarified that the Town’s 1 percent increase only applies to the municipal portion of taxes and does not include the provincial education requisition.

“That 1% doesn’t include the education tax,” he said. “That was increased by the Government of Alberta. We have no control over that.”

Council discussions earlier this spring also highlighted concerns about ensuring that reserves are properly funded with actual cash available for future projects, rather than merely existing as accounting figures on paper.