Mill rate down but taxes rise in most of Hanover

Most of the RM of Hanover will see a decrease in the mill rate but an increase in assessments this year as the municipality approved its budget Wednesday.

In the past 10 years, the municipality has seen an average growth of assessment of eight percent, with budgeted municipal expenses increasing by 6.23 percent.

As this is a reassessment year, there is an increase of 20.2 percent. What this means is that a home assessed at $420,700 in the rural area will see an increase of $128 (8.15 percent) with the mill rate set at 8.952 mills, a decrease of 1.039 mills from last year.

In Grunthal for a home assessed with the same value the increase is $156 (7.87 percent) and the highest mill rate of all LUDs at 11.274 mills.

“Grunthal has the highest mostly because of the municipal debt itself for utilities. The community itself hasn’t seen a lot of growth in actual real growth in the community aside from year after year assessment growth so consequently that utility rate has been subsidized by the RM for many years…,” said Hanover CFO Derek Decru.

“What’s happened this year we’ve reduced the mill rate in Grunthal for utilities. We’re subsidizing more of the mill rate with gas tax in order to try and keep the impact a little bit lower for the community.”

Blumenort residents will see the highest increase of $162, or 14.52 percent, but the lowest mill rate at 6.736 mills.

“It’s been a desire in the community from leadership in that community to keep taxes down over the years and now they’ve made the determination that there’s changes and upgrades required in the community. In order to do that, we need to start getting some funds available for it so we’re looking at bringing the taxes back in line at that point in time,” said Decru.

New Bothwell will see an increase of $114, or 6.6 percent (sitting at 9.712 mills), while Kleefeld will see an increase of $74, or 4.59 percent (sitting at 8.901 mills). Mitchell will see a decrease by 1.8 percent or $29 (sitting at 8.351 mills).

Total operational budget is $12.25 million with 40 percent going towards transportation; 20 percent to general government; 15.5 percent to recreation; 10.6 percent going towards solid waste/utility; and 9.9 percent to protective services.

The total tax revenue for the year will be $12.24 million with 56 percent coming from the LUDs and rural area taxes.

Utilities sewer fees are as follows: Blumenort $236, Mitchell $165, and New Bothwell $248. The solid waste fee is set at $225.

At the end of 2024, the reserve balance was $24.3 million and for this year the projected reserve total is $23.6 million.

This year’s capital budget is $5.7 million with 40 percent going towards transportation, 20 percent to recreation, LUD capital of 15 percent, utility capital of 14 percent, and general government eight percent.

Future capital projects being considered include the Grunthal Arena ($4.5 million) for 2026/2027; Road Reconstruction in 2026 of Rd 31E ($500,000) and Rd 27E ($200,000), and in 2027 Rd 29E ($750,000); and a new Grunthal Fire Truck in 2026 ($1.3 million).

Taxes are due Oct. 15.