You can ride your sled in town, as long as you're making your way out of town. The bylaw is fairly standard in all Northern climate communities. Respectful snowmobile riders rarely face RCMP.
Take the most direct route from your home to the town limits. That would be the most direct route via streets and alleys. Wear reflective gear, and a proper helmet. Keep your lights on, and your machine in good working order. 20 km/h speed limit is also fairly standard but you will want to check with your town councillor or municipal enforcement officer before ripping down the road.
If you're a new snowmobile rider, you may be unsure of how to get safely out of town. You don't have to pack the sled up on a trailer or winch it onto the back of your truck and look for a place to go riding on the weekend. You can fire it up and slowly go for a ride. Now is the time to take it all in, while the snow still blankets the Earth, and the warm sun calls us outdoors.
For town residents that get excited when they spot a ski-doo going down the street (or a group of them) it can be intimidating, but be aware that's its not illegal to drive in town.
One thing that a bylaw officer wanted to note is that driving a long side the highway ditches is discouraged. Even though snowmobile riders are usually just coming to get gas, the officer noted that alternate routes to the gas station are there.