Medicine Hat city council decided to delay a final decision on the reserve funds proposal. Eli J. Ridder/CHAT News

By Eli J. Ridder

Medicine Hat council delays decision on new reserve funds, heritage savings rebrand

Sep 16, 2024 | 9:50 PM

Medicine Hat city council decided to wait on making a final decision on a proposal to establish a pair of new reserve funds and rebrand its heritage account.

A proposed Abandonment Reserve will help the city save for its debt and reclamation obligations and an Energy Transition Reserve will assist the city’s move towards net zero emissions.

Both of the new accounts will receive $75 million from the city’s unrestricted cash stockpile to get the funds kicked off.

The staff proposal also recommended a rebrand of the Heritage Savings Reserve to the Medicine Hat Endowment fund that includes more clarity around what it should be used for.

A rule prohibiting the city from accessing the Medicine Hat Endowment fund’s principal would remain in place.

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The proposal did not make it to a third and final reading after council decided to hit pause so staff could make a few minor changes and there could be more time for consideration.

Mayor Linnsie Clark and Couns. Ramona Robins, Sharps and Van Dyke voted against moving ahead to a third reading on the financial reserves proposal Monday night. Unanimous support was needed.

It’s expected the item will return at the next regular meeting scheduled for October.

Endowment fund

Finance Director Lola Barta said the new bylaw governing the $209 million endowment fund defines how the investments can be used into three categories: financial sustainability, economic evolution and community liveability.

“It is a large amount of money and we want to make sure that is it being utilized for things in our community that we can point to and say ‘this is what we’ve done with it,'” Barta said.

The savings fund is made up of profits from the city’s energy business.

Coun. Robert Dumanowski agreed that the proposed changes make it easier for the public

“This new proposal in front of us will, through a motion, will establish a clearer, more delineated understanding of the funds and the reserves and their purposes,” Dumanowski said.