Hanover mill rates increase in proposed 2026 financial plan

Ratepayers in the Rural Municipality of Hanover could see increases to the mill rate as the municipality introduced its 2026 financial plan.

Hanover’s chief financial officer Derek Decru presented the $33.7-million budget to council on April 8, which unanimously passed first reading.

Municipal assessment rose by 3.08 percent, sitting at $39 million. The 2026 estimated tax revenue is $13.3 million.

Hanover’s operating budget is $25.6 million, with rural transportation representing 29.6 percent and recreation representing 39.7 percent of the funding.

Decru raised concerns over the rising municipal expenses and municipal tax revenue not keeping up. He highlighted aging infrastructure and the growing population as the main sources for blame.

“The roads in Hanover when they were built originally were not built necessarily to a very high standard. It was built back in the day where it was pretty much the goal to get that road through,” he said, noting gravelling roads is one of the RM’s top costs.

All communities saw a marginal increase to mill rates. Mitchell rose from 8.3 to 8.7, Grunthal increased from 11.7 to 12.03, Blumenort jumped from 6.7 to 7.3, New Bothwell rose from 10.003 to 10.5, Kleefeld increased from 8.9 to 9.1 and rural rates jumped from 8.9 to 9.4.

The projected tax impact on a residential $420,700 property for 2026 is an increase of $79 in Mitchell, $50 in Grunthal, $101 in New Bothwell, $48 in Kleefeld and $92 for rural properties. Blumenort saw the highest increase of $125, a 9.75 percent jump.

Decru said Blumenort’s tax increase is because it didn’t have any utility debt for many years. When other communities like Mitchell and Grunthal were upgrading infrastructure from 2010 to 2012, Blumenort avoided the extra rates because of the existing industries in the community. Decru also noted infrastructure upgrades are slated for the growing community, and tax rates need to keep pace for funding the projects.

“It’s highly attractive growing community… if you go back 10 years, all the residential area on the south side was very small at this point in time. Now, you got multi-family dwellings, and a large number of them. It’s a community that’s growing up now,” he said.

The 2026 solid waste fee increased by 3.65 percent, rising to $229.85. Utility sewer user levies for 2026 sit at $236.45 in Blumenort, $165.07 in Mitchell and $248.40 in New Bothwell. The Red-Seine-Rat Wastewater Cooperative facility submitted rates to the Public Utilities Board for review. Once approved, ratepayers could see an additional $38.33 added per quarter.

The municipality has set aside $16.5 million for its capital budget. Big-ticket items include the $7.6 million Grunthal Arena revitalization project, which is expected to be completed in November, a new $1.3 million fire truck in Grunthal and $3.5 million in road reconstruction over five years.

Roughly $2.3 million in capital spending is allocated for recreation projects, such as ball diamond upgrades in Mitchell, an industrial mower and outdoor movie equipment. The municipality assigned $1.4 million for nine utility capital projects, three studies and two water main renewal projects in Kleefeld. The financial plan didn’t include the costs for these projects.

Taxes are due Oct. 15.