SHERBROOKE — The Municipality of the District of St. Mary’s first draft budget for the fiscal year ending March 31, 2026, reflects no change to the residential property tax rate, currently set at 96 cents per $100 of assessment, according to documents presented to the committee of the whole on Feb. 18. However, among the options being considered in the first draft of the budget is initiating an increase to the residential/resource tax rate from $0.96 per $100 of assessment to $0.99 per $100 of assessment, for a revenue impact of $68,081, as well as increasing the commercial tax rate from $2.27 per $100 of assessment to $2.30 per $100 of assessment for a revenue impact of $7,679.
For 2025-26, projected revenues are stated at $3,700,891 while expenditures are $3,793,000, leaving a shortfall of $92,109.
At the meeting, Director of Finance Marian Fraser said that, after reviewing the assessments for 2025-26, “There are no increases to any of the area rates at this time,” although this will be reviewed as municipal staff explore options to make up the shortfall. “We can also look at potentially decreasing some expenditures,” she added.
The budget includes funds for community and economic development, along with climate change projects, as well as money for transfer station operations, including tipping fees and groundwater monitoring. Costs associated with the transfer station include solid waste rates and extended producer responsibility programs.
The sewer utility budget includes salaries, power and operating expenses, and funds for mandatory testing and other sewer-related expenses, with no rate increases proposed. The street light area rate is also expected remain unchanged. The water utility rate – which has stayed steady over the past few years – is expected to increase.
In an email to The Journal, St. Mary’s Warden James Fuller indicated that “every effort is being made to ensure all our fiscal obligations are met with minimal impact on our taxpayers” and that the first draft budget is “not set in stone.”
He added: “Over the last few years, the municipal council has endeavored to provide a balanced budget with minimal or no rate increases for the residents of our community. Staff have been able to secure many grants to help support the services and programs that so many of our neighbours depend on. Council is cognizant of not only the pressures of our current economy as reflected in higher costs but also the burdensome increase of unfunded mandates by the provincial and federal governments placed on local authorities.”
Fuller said this first draft budget “reflects many hours of work by municipal staff to not only ensure services continue but provide higher property tax relief to our citizens dependent on lower or fixed incomes. St. Mary’s tax rate currently is in an intermediary range with other area municipalities. The unfortunate fact of life is that these other areas have a higher population base to call on ... Municipal council and staff are reviewing every line item to ensure the highest standards of service continue not only for next year, but for years to come.”
Key revenue sources expected include residential/resource and commercial property taxes, grants in lieu of taxes, revenue from municipal sources and transfers from other governments. Key expenditure areas are anticipated to be general government services, protective services, transportation services, environmental health services, environmental development services, recreation and cultural services, financial and transfers.
For the fiscal year ending March 31, 2025, St. Mary’s is expected to post revenues of $3,408,821 and expenditures of $3,202,588, for a surplus of $206,234.
Property tax rebate
Fraser told the COTW that there were 55 applications for the municipal low-income property tax rebate last year, a number that could more than double (to 111) this year.
During an earlier COTW meeting, councillors requested more information regarding moving to a tiered model and increasing the low-income threshold, with an eye towards narrowing the gap between the one of the municipality ($25,280) and the province ($29,000).
Fraser explained increases to the income threshold are historically increased based on the cost of living and consumer price index information. For the fiscal year 2024-2025, there were 55 (56 in 2023-2024) eligible applicants, which equaled a $9,900 operating expense for the municipality.
Of the four options considered by the COTW for 2025-2026, a tiered system was recommended as the best option for meeting the needs of applicants, at a potential cost of $26,500 for the municipality.
Applications for the low-income property tax rebate and the annual household income threshold tables can be found on the municipality website at www.saint-marys.ca
