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By CHAT News Today

Municipal differences

City says CTF spending report doesn’t paint an accurate picture

Jun 19, 2020 | 2:51 PM

MEDICINE HAT, AB – There are big differences between municipalities that the Canadian Taxpayers Federation needs to take into account in its report about municipal spending.

That’s the word from the City of Medicine Hat after its report this week that pegged the city as the highest per capita spender among 14 big cities in the province.

“The CTF report does not take into consideration the differences between municipalities,” says Dennis Egert, commissioner of corporate services. “It is inappropriate to compare each municipality just based on total costs when each municipality offers different services and amenities and municipalities vary substantially in terms of their participation in revenue generating enterprises that typically have the effect of lowering the burden on taxpayers.”

The report found Medicine Hat spends $6,243 per person each year. The average among the 14 big cities (population more than 30,000) is $3,401.

The city says the amount reported by the CTF is based on the total consolidated expenses for the City of Medicine, which includes revenue generating business units not found in many (or in some cases any) other municipalities. These include power generation, gas and electric distribution, oil & gas production, environmental utilities, and land development. These business units are extensive and the related revenues, costs and net profits are substantial.

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Typically, these areas generate net revenue and therefore do not require funding from municipal tax dollars. If those units are removed from the report, Medicine Hat spends $2,555 per person.

“The City of Medicine Hat is constantly striving to lower costs in providing services to our residents and businesses. It’s also important for residents to understand that our City has invested in first-class facilities, amenities and park areas which enhance the quality of life for our community, such as the Esplanade, Canalta Centre, and Echo Dale Park,” adds Egert. “These assets are possible in large part because of success in our revenue generating units, and they are not typically offered in most municipalities our size.”

A release from the city says a more appropriate measure of a city’s performance for taxpayers is the median tax required for single detached houses to support municipal expenses. By this measure the City of Medicine Hat consistently outperforms virtually all other comparator municipalities as evidenced by the recent 2018 City of Calgary’s comprehensive survey of property taxes.