City unveils $8.2-million support for residents and businesses during pandemic

Council made the announcement and approved the funding unanimously during the regular council meeting on Monday, May 4.

According to Mayor Ted Clugston, the money will come out of the Community Capital Reserve.

“The federal and provincial (governments) are borrowing money to hand out. The City of Medicine Hat is taking this out of savings. This is money we have because we are not allowed to borrow for operations. So this is money coming out of our Community Capital Account which normally goes toward things like building an event centre or senior centre. Normally for capital frankly. But it’s going to go to this utility and tax relief. As well as an investment towards new businesses, existing businesses, and community warmth.”

Community warmth is gas, electric, water, and sewer.

“What you’ll see on your property tax bill, you’ll see the actual 2020 property tax owing and then there will be a line item it will say COVID Relief or Property Tax Rebate. And it will be the equivalent of about 3.5 percent so you’ll get a credit. So you’ll know what you were going to pay minus the credit and then your net,” Clugston said.

Mayor Clugston adds this was a really tough decision for council to deviate from the course of financially fit because a lot of these tax increases that we have been bringing in over the last few years were with the intention of reducing our reliance on the dividend.

“What’s going to happen in 2021? We don’t know. We could still be in the thick of this and thankfully, of course, the city has some reserves. We’re actually going to cross that bridge when we get there to tell you the truth because we don’t know what it’s going to be like even next month.”

A release of the plan from the city states:

“Although the responsibility for public health and economic well-being of the community largely rests with other levels of senior government, the City has chosen to augment and support provincial and federal programs to customize for local conditions.

The package includes up to $8.2 million dollars in support consisting of the following:

• $3.9M COVID property tax credit for all classes (subject to final 2020 Assessment values completed early May). This will be achieved by maintaining all municipal taxes at 2019 rates (originally set to increase by 3.5% for 2020)

• $0.3M relating to three-month payment deferral of property taxes and utilities with a 12-month repayment plan for arrears (up to 24-month repayment plan on a case-by-case basis.)

• Up to $2M grant for reinvestment into local businesses. The fund will be facilitated by Community Futures Entre-Corp in $500,000 tranches. Entre-Corp is a trusted and capable entity, and is well-equipped to facilitate fund redistribution as per their current mandate. The City will provide criteria to ensure appropriate adjudication of applicants.

• Up to $1M support for vulnerable residents. Offered via $250,000 tranches as needed, the contribution will be shared between Community Warmth and Community Foundation of Southeastern Alberta.

• Up to $1M for inducements to achieve/expedite economic development, and financial amendments to existing contractual arrangements on a case-by-case basis. This fund will be facilitated by the CAO office.

The City has also submitted to the Province a list of shovel-worthy capital projects that may qualify for Federal or Provincial Government stimulus spending.

“We’re proud that our City is able to offer a significant assistance package to both residents and businesses during this challenging time,” added Clugston. “Our community has a history of coming together and supporting one another in a crisis, and we’re confident that Medicine Hat will rally and triumph over time.”

More information related to the City’s response to COVID-19 can be found on the city’s website.

by Chat News Today

City unveils $8.2-million support for residents and businesses during pandemic

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