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Question 3 of 8

Surpluses, reserves and debt

When the RM has an operating surplus or significant reserve funds, how should Council balance saving for future infrastructure, paying down debt, funding current projects and limiting future tax increases?

  1. Photo of Zach Ostrove
    Zach Ostrove

    I don't think a surplus should automatically be spent just because the money is available, but I also don't believe reserves should simply continue growing without a clear purpose. The first question should be what we know is coming. West St. Paul is growing, and major infrastructure needs are going to come with that. I would prioritize maintaining appropriate reserves for planned infrastructure, addressing priority projects and managing debt responsibly. Borrowing can make sense for major infrastructure that will serve residents for decades, but it needs a clear repayment plan. If reserves are properly funded and there is genuinely excess money available, I would use it to reduce pressure on future tax increases rather than creating new ongoing expenses simply because we had a surplus.

  2. Photo of Jamie Shuhyta
    Jamie Shuhyta

    When the RM experiences operating surpluses, Council should prioritize planning current and future infrastructure needs that benefit all. While growth is important, we must not overlook the significant investments existing residents have already made to the community. Reserve funds may accumulate substantial balances as part of long-term planning to finance major community projects, such as an upgraded recreation complex or other critical improvements. Utilizing reserve funds for these projects can reduce or eliminate the need for borrowing, limiting future tax increases and debt. When considering allocating surplus funds toward reserves or debt repayment, an analysis should be conducted. Council should compare investment returns against interest costs from long-term debt to determine the greatest benefit to taxpayers and the long-term financial health of the RM.