Budget plans, Riverside Corridor design and Heron Crossing faced by Medicine Hat council

Fees and charges are expected to increase by three per cent, while the budget assumes no blanket inflation increase for operating departments.

Administration says the projected gaps would require $14.3 million to be transferred from reserves if the current assumptions remain in place.

The presentation also showed an eight per cent tax rate increase would be required to balance the budget in both 2027 and 2028 under the current projections.

Those figures are not final tax rates, as council is expected to approve the tax rate as part of the budget process next year.

Administration is recommending $10.04 million in ongoing cost-pressure spending over the two-year cycle, along with $1.76 million in one-time cost pressures.

The preliminary budget also includes $6.9 million in one-time strategic operating initiatives in 2027 and $1.34 million in 2028, along with $49,000 in ongoing costs.

On the capital side, administration is recommending $126.7 million in sustaining capital spending in 2027 and $86.2 million in 2028.

Strategic capital requests total $114.2 million in 2027 and $800,000 in 2028.

Administration identified several factors contributing to the budget pressures, including reduced provincial funding, the loss of scheduled commercial air service and higher fleet, facility and recreation costs.

The city is also forecasting higher investment earnings, but cautioned that those revenues can fluctuate with market conditions.

Council was told Monday that the budget process will continue through the fall, with an overall budget approval targeted for Dec. 7.

The next opportunity for council to discuss the budget is an Oct. 20 Budget Committee meeting.

Council also approved several other items Monday.

A new Subdivision and Development Appeal Board bylaw received second and third reading, repealing and replacing a bylaw dating back to 1994.

The updated bylaw modernizes hearing procedures, clarifies the responsibilities of the clerk and chair, updates terminology and provides additional details around panel selection and composition.

It also allows SDAB hearings to be recorded and published on the city’s YouTube channel.

Council approved amendments to its Public Member Appointments Policy to update references to the new appeal board bylaw and the Governance Committee, while also clarifying attendance expectations and the termination of public appointments.

Administration also said it will establish a system to track attendance by public members appointed to city committees.

Council denied a request to cancel or refund municipal taxes on a property at 623 4 Street S.E. for the 2016 to 2025 taxation years.

The decision was based on the property owner not filing assessment appeals within the legislated appeal periods.

Council also directed administration to push the expected report on the Heron Crossing multi-use trail to the fourth quarter of 2026, giving staff more time to explore external funding and cost-sharing opportunities.

The city’s Kinsmen Aquatic Centre at the Big Marble Go Centre is also set to reopen Friday, ahead of its previously expected Oct. 1 reopening date.

Council also approved a design for the Riverside Corridor project that will maintain the existing road width, add curb extensions at seven locations and not include a multi-use trail.

—

READ: Medicine Hat council approves Riverside Corridor design with seven curb extensions

by Jett Schwaier

Budget plans, Riverside Corridor design and Heron Crossing faced by Medicine Hat council

Our Community