Motion to cut 1.7% off Medicine Hat’s proposed property tax increase fails

The only other member of council that supported his proposal was Coun. Shila Sharps. All other council members voted against the motion.

Council later in the meeting passed the proposed budget with an amendment removing a $9.5-million food waste compost facility.

McGrogan, Sharps and Mayor Linnsie Clark were the only members to vote against the two-year budget.

McGrogan said in a prepared speech that council is “not here to passively agree with administration” when making decisions on the budget.

In what was a striking address to the chambers during a debate on the 2025-26 budget, McGrogan said he was told by a staff member that he was unqualified to determine the mindset of residents.

“Recently, I received an email from a senior administrator accusing me of not being qualified to assess that taxpayers are distressed,” McGrogan said during Monday’s meeting.

“I disagree with this assessment. During the last municipal election, I received a very strong support and a very clear mandate from our electorate.”

McGrogan said that, during his time as police chief, he was asked to find efficiencies and was able to.

The city currently has a hiring moratorium and is working through a workforce strategy plan to determine the optimum staffing levels for city hall.

Managing Director Dennis Egert confirmed that $950,000 in revenue equates to a one per cent tax increase.

In his motion, McGrogan asked staff to reconsider the money that would be put towards the $9.5-million food waste composting facility.

He requested that budget staff return with a revised budget that does not include withdraws from the Medicine Hat Endowment Fund to counter reductions in tax increases.

He called for a reduction of the proposed 5.6 per cent tax increase to 3.9 per cent.

Robins said she didn’t support McGrogan’s motion because she doesn’t want to burden a future council with more to make up like when council carried out zero per cent tax increases over the COVID-19 pandemic.

“The other concern I have about cutting costs arbitrary is that always affects the most vulnerable,” Robins said.

The former Crown prosecutor pointed to a recent community survey that found there was no majority of respondents that wanted to reduce taxes or reduce services.

“I feel like this is an arbitrary number and I can’t support the motion as it stands.”

The 2024 Community Survey, carried out earlier this year by the Ipsos polling firm, highlighted resident concerns around city leadership, including mayor and council.

Coun. Robert Dumanowski says he’s never seen such a surgical breakdown of the budget as has occurred this year, pointing out the over 20 hours spent on public budget presentations.

Dumanowski says many of the comments made at council Monday night are “quite damming” of staff.

“We are complicating things for them,” he said of the argument over preparing the next council for success.

He also shot back on the previous term of council’s decision to have zero per cent COVID-19 tax increases.

“The tensions tonight are palpable but they are nothing in comparison to the tensions we were facing during COVID and the grave uncertainty that this organization and humanity was facing,” Dumanowski said.

“We made the right decisions at the time.”

Coun. Allison Knodel said McGrogan’s motion comes too late.

“I believe leadership is something that should be proactive rather than reactive, and I’m sad to say that this council has been extremely reactive and not visionary in any way,” Knodel said.

While she had concerns over the food waste compost facility, Knodel said she won’t let it hold up the budget and would be open to returning to that capital project in January.

Coun. Darren Hirsch said he won’t support McGrogan’s motion and will support the budget as-is.

Coun. Cassi Hider was visibly emotional as she spoke in opposition to McGrogan’s motion.

“This decision has pulled on my heart,” Hider said, saying she will support the proposed budget.

Mayor Clark criticized the budget process, saying she asked many questions that weren’t answered.

She appeared somewhat open to McGrogan’s motion but had questions about how it would work.

Clark proposed passing the budget and amending it later.

Sharps said she supported dropping the rate decrease to 3.9 per cent and adding the extra cash later with amendments.

Chief administrator Ann Mitchell said staff are looking forward to “clear direction”. In response, Clark said she has asked questions that were not answered.

“That clarity goes both ways,” Clark said.

by Eli J. Ridder

Motion to cut 1.7% off Medicine Hat’s proposed property tax increase fails

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