CHAT News File Photo

By Chris Brown

Continuing economic challenges

City to cut staff as it accelerates Financially Fit plan

Nov 4, 2020 | 9:58 AM

MEDICINE HAT, AB – The city says reductions in staff are expected as it fast-tracks its Financially Fit initiative amid growing provincial and global economic pressures.

“With ongoing oil and gas losses, as well as additional challenges created by the global pandemic and lower transfers from the Government of Alberta, our revenues continue to decline while our expenses face inflationary pressure,” says City of Medicine Hat CAO Robert Nicolay in a release. “The 2021 budget update will be presented to Council for their consideration in the next few months, and it must be balanced. We need to bring our expenditures in line with our revenues. We can’t rely on our reserves and we are determined to avoid resorting to excessive tax increases to address our budget gap.”

Today the city announced the Accelerated Financially Fit Initiative. The original Financially Fit program was launched in 2016, as the city sought to find $23 million in annual net cost reduction as oil and gas revenues decreased.

About one-third of those savings have been achieved, but the city says its running short on time to find the rest. Assessment base growth and cost-saving measures will comprise a significant portion of the plan announced today, as well as the cuts to staff.

WHAT'S ON

Here is what's on this weekend in Medicine Hat and area: Dec. 13-15

Dec 14, 2024

IN THE COMMUNITY

Medicine Hat's Mustard Seed adding new shelter spaces at Alberta government's request

Dec 12, 2024

HOLIDAYS

Medicine Hat Kiwanis hosting Christmas dinner, applications due Friday

Dec 12, 2024

“The acceleration of the plan will include reductions in staff,” says Nicolay. “We are committed to being transparent with employees as we work through this difficult period, and we will attempt to facilitate staff reductions through attrition and retirement options wherever possible.”

Recent contract negotiations with the Canadian Union of Public Employees that resulted in an agreement that will see zero per cent, zero per cent and two per cent annual wage adjustments over the next three years will also help the effort. Out of scope employees also wages frozen in 2020.

Before the COVID-19 pandemic hit, the city’s 2019-2022 budget included annual property tax increases of four per cent. A one-time COVID-19 rebate was instituted this year, funded through reserves, essentially keeping property taxes at the 2019 rate. The 2021 will also aim for no increase.

The city says officials are committed to preserving the Medicine Hat Advantage and sharing progress on balancing revenues and expenditures for the 2021 budget update.

“Our residents enjoy a tremendous quality of life here in Medicine Hat and we don’t want that to change, but we are signaling to the community that these financial challenges are significant,” says Nicolay. “We continue to focus on being responsible stewards of the public purse and finding solutions that don’t add to the burden on taxpayers. We do anticipate changes to service levels will be proposed in some of our municipally-provided services, and any proposed changes will be discussed with Council as part of the budget process.”

To learn more about the Accelerated Financially Fit Initiative visit www.medicinehat.ca.