File Photo/CHAT News

By Eli J. Ridder

CITY HALL

Medicine Hat city council pushes back budget decision

Dec 3, 2024 | 12:44 AM

Medicine Hat city council on Monday pushed back a final decision on the next two-year budget to Dec. 16, its final scheduled meeting of the year.

Council wanted more information from staff regarding several funding requests from community organizations — including HALO Air Ambulance — and more details about a $9-million food waste facility.

Mayor Linnsie Clark asked about a drop in full-time equivalent positions in relation to a previous decision council made — information staff will return with.

Council was poised to vote on a proposed budget with 5.6 per cent property tax rate increases in 2025 and 2026 that officials said aimed to meet present needs while preparing for the future.

The tax increases mean a single-family home with an assessed value of $315,000 will pay about $10 more per month in 2025 and then $10 on top of that monthly the year after.

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Dennis Egert, managing director of corporate services, said the city in this budget had to balance declining energy earnings, foregone property tax increases during the pandemic, reduced Alberta government transfers and development fees and the city’s historic municipal budget gap.

“This 2025-26 budget opens the pathway for the city to be prepared financially, operationally and strategically to respond to these issues in the future,” Egert said.

The bump in taxes could have been higher in the draft budget but staff were able to cut down capital asks by $12.8 million and found $2.6-million in operating reductions.

They were also able to reduce the workforce by a net 3.0 full time equivalent positions — down 11 and up eight overall as non-payroll departments kept budgets flat despite economic pressures.

The increase does not entirely catch the city up to where it could have been if tax increases weren’t frozen in 2020 and 2021 due to the pandemic.

The city’s municipal budget gap will also drop to $5.1 million by the end of 2026, according to the draft document.

City revenue is expected to drop by 20 per cent to $426 million in 2025 as electricity prices continue to drop.

Coun. Allison Knodel said she felt connected to this year’s two-year budget.

“I understand where we’re at and I feel like I have a good picture of why the decisions you’re making have been made,” Knodel said.

The chief administrative officer’s contingency funds were also reduced by $350,000 annually, with the city manager having $600,000 available in both 2025 and 2026.

Council agreed to adjourn shortly before 11 p.m. and pick up deliberations in two weeks. The city is mandated by Alberta law to pass a budget by the end of the year.