Council voted in December to approve the next two-year budget. Graphic/CHAT News

By Eli J. Ridder

WHAT TO KNOW

Here’s what you need to know about Medicine Hat’s 2025 tax increase, in brief

Dec 27, 2024 | 9:23 AM

Jan. 1 marks the start of the 2025-26 budget years.

The two-year-budget was worked out over the course of 2024 in what officials say was the most transparent process in city history with over 24 hours spent in public meetings.

It largely focuses on maintaining existing city services while saving for the future.

Here’s what to know about the cost changes.

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5.6% tax increase

Property taxes will increase by 5.6 per cent in both 2025 and 2026.

Homeowners can expect a municipal increase of approximately $10 per month for both years, based on the 2024 average assessed value of residential properties, a $315,000 single-family home.

An 11th-hour attempt by Coun. Andy McGrogan to cut that increase down to 3.9 per cent failed at council’s final meeting of 2024.

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Utility fees

Residents will see a one per cent increase in utility fees.

Homeowners will pay under $2.80 more each month for their combined water, trash and energy delivery — including gas and electricity — next year.

That works out to being $768 per year lower than the average current 2024 rates of other Alberta cities, according to city figures.

Commercial rates will go up five per cent and industrial customers increase by four per cent.

The fees are separate and not impacted by the rates set monthly under the city’s current best of market approach.

Council’s take

City council approved the spending plan on Dec. 16.

Six councillors voted in favour of the budget and accompanying financial plan: Alison Van Dyke, Darren Hirsch, Robert Dumanowski, Cassi Hider, Ramona Robins and Allison Knodel.

Van Dyke, like several others on council, supported the budget because it maintains the city’s services.

“For me it was more about maintaining those services and facilities that we currently have in the city.”

Mayor Linnsie Clark joined Couns. Shila Sharps and Andy McGrogan in voting against the budget.