MEDICINE HAT, AB — City council approved its first four-year budget on Monday night.
Historically, a two-year budget is completed annually with forecasting for the remaining 10 year period.
Officials say this was done to find a balance between immediate needs and long term consequences in financial planning and control.
“We have had artificially low property taxes, we’re trying to slowly wean off the energy dividend,” said Mayor Ted Clugston.
The operating budget includes a four per cent annual property tax increase and assumes a 0.5 per cent annual growth in assessment base.
The average home in Medicine Hat costs $266,300. A net increase of four per cent would be about $99 per year or $8.25 per month.
“Two per cent of it is actual just tax based upon inflation, wages,” Clugston added. “The other two per cent is dedicated towards weaning us off of the commodity income and we’ve been pretty consistent. Well, we have been absolutely consistent with that.”
It’s hoped that significant progress can be made towards the replacement of the $23 million energy subsidy, which is expected to be reduced to $7 million by 2022.
