Mayor Linnsie Clark chairs a council meeting on Aug. 21, 2023.--News Photo
cgallant@medicinehatnews.com@CollinGallant
Mayor Linnsie Clark says Hatters were stressed in 2023 by the cost of living and that added heat to the issue of record-breaking power prices last summer.
She told the News that council’s reaction – issuing millions in credits along with interim rates this fall – was the most important council action of the year, while acting on a planned review of the utility will be a major focus in 2024.
“In Medicine Hat, we have a lot to be grateful for, but affordability is certainly an issue, and some people are experiencing it acutely right across Canada,” she told the News in a year-end interview.
“We own our own utility and were able to provide different rates, we’re doing a review to see how we can maximize the value of the utility to the community, and provide relief … those helped alleviate some pressure.”
Clark and council reached the half-way point of their term in October, just as they ordered a three-point approach to power prices that will include a third-party review and potential options to rearrange business practices at the utility.
At this point it appears to the be the biggest item on the local political agenda for the year ahead, though a two-year “Strong Towns” planning exercise will end in 2024 and council will consider adopting an environmental roadmap in the spring.
That will coincide with a clean energy strategy at the utility company that again set record profits selling into Alberta’s sky high power market.
The dividend will be more than $130 million this year, and the 2024 forecast is above $80 million, though export power prices are forecast to fall long term due to new gas-fired generation in the province and the growing effect of renewables.
“The larger business review will inform that,” said Clark. “We’ve had some very good years, but long term, we are going to need to transitional solutions, technological solutions and make sure we’re prepared for that, financially,” said Clark, citing the Heritage Savings Reserve, created by council in the mid-2010s.
Receiving a portion of utility profits, it has grown to $200 million quickly in three banner years of electricity revenue.
Finance officials said this year that larger than expected returns will help balance the city operational budget in 2025.
Large profits at the same time of tax increases has also led to criticism of council that has targeted Clark.
She became the first mayor of an Alberta city to be subject to a formal recall petition, though the effort fell two-thirds short on required signatures.
“I certainly see that the community is very engaged, and we rely on feedback to make sure we’re meeting the legitimate needs of the community,” she said. “As you increase the amount of information out there, the more people are able to comment. Moving forward, we’re still going to see a lot of engagement. I hope the communication is solution orientated.”
This year city council also sent several issues back to committee or staff for more study.
Eventually, bylaw changes to allow for a trap, neuter and release program for feral cats went ahead, as did potential fines for feeding urban wildlife, an effort to deter deer in the city.
A long promised “community wellness” initiative got underway this fall with talks between social service agencies.
City manager Ann Mitchell was hired in February and council completed its procedural review in August, which was outlined by Clark at the end of 2022 as a key priority.
The latter process however, ended with eight council members opposing Clark and removing many of responsibilities of the mayor. Appointments to committees are now approved by majority council vote, rather than the mayor alone.
The year ahead will also see the completion of a two-year contract with “Strong Towns” which works with cities to evaluate fiscal sustainability through planning measures.
It suggests maximizing tax assessment through redevelopment and promoting investment in mature communities.
The same general formula was included in the most recent update of the municipal development plan, done during the last council term. In 2024 the city’s land-use bylaw, which deals with more regulatory issues, will be updated.
“We need to build houses,” said Clark, stating the city is exploring taking part in federal housing programs, and on the economic front, is now developing a regional economic strategy.
The city also restarted actively participating in economic development by restaffing the Invest Medicine Hat office.
