SHERBROOKE – Facing rising costs and ongoing uncertainty around provincial funding, the Municipality of the District of St. Mary’s has approved a two-cent increase across all classes of property taxes at its annual general meeting April 27.
The combined impact pushes the residential/resource rate up two cents from $0.98 per $100 of assessment in 2025-26 to $1.00 in the 2026-27 fiscal year. Commercial property owners will also see a two-cent increase this year, with that rate rising to $2.31 per $100 of assessment, up from $2.29 last year.
Council approved a balanced operating budget, with $3,036,882 in tax revenue and additional income from user fees and transfers from other levels of government.
Warden James Fuller described the tax increases as “unfortunate” but unavoidable.
“A balanced budget was originally proposed that maintained service levels without increasing the property tax rates, however, the recent provincial budget cuts significantly impacted grant funding that both the municipality and many local organizations access, as well as operating funding for key groups,” he told The Journal in an email.
Though he did not specify programs affected, he said, “Like many municipalities, we’re facing rising costs to deliver essential services from infrastructure maintenance to general operating costs. The municipality relies heavily on grant funding to offset costs.”
Ultimately, he said, “With the uncertainty of potential reductions in outside funding and grant opportunities, an increase to the municipal tax rate was required to ensure continuous, reliable service delivery that residents rely on every day.”
Among the austerity measures introduced in February’s provincial budget were $130 million in program cuts to arts, culture and community programs as well as several municipal supports across Nova Scotia. Meanwhile core funding for a variety of civic partnerships, including rural libraries, were flattened or left undetermined
Despite the pressures, however, St. Mary’s council did not increase all local charges last week. Streetlight rates remained at $93.72, the solid waste charge held at $116.63, and the Sherbrooke sewer area rate stayed put at $220 per unit.
Major spending pressures were concentrated in a handful of core service areas, including $708,058 for RCMP policing.
Environmental health services – including sewer operations, waste management and public works – accounted for $948,793, while general government services totalled $927,674. The municipality was also required to contribute $813,009 to the Strait Regional Centre for Education, a mandated expense with little room for adjustment.
Together, those costs rose by roughly $105,000 year over year, leaving little room for reductions without affecting frontline services, Fuller said. “The primary consideration is the piece of delivering services – when expenses rise, we have to assess how those are covered.”
In this, he said, uncertainty about provincial funding will remain a challenge for local budgeting.
“We’re continuing to see cost pressures in areas like infrastructure, service delivery, and external funding. At the same time, council is focused on managing expenses carefully and looking for efficiencies. The law states [we] must maintain a balanced budget. It puts a great strain on municipalities.”
Meanwhile, though long-term economic development – including proposed wind energy projects – could provide tax relief, he cautioned there are no guarantees.
“Each budget year [is] different, so it’s difficult to predict with certainty. St. Mary’s tax rates are on the lower end compared to most Nova Scotia municipalities, reflecting longstanding cost management. What we can say is that council is very mindful of the financial impact on residents and businesses… especially in today’s economic climate.”
See story, in this week's edition for St. Mary’s ratepayers’ reaction.
