More cuts to the proposed two-year city budget have been made ahead of final council debate on Monday.--NEWS FILE PHOTO
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The huts are cut, as is funding to help finance larger electrical hook-ups for homes and some pro-redevelopment measures, on a new list of capital projects cut from the proposed 2025-26 city budget that council will debate and finalize next week.
The comfort cabins at city campgrounds – described as “yurts” – were move to a list of now deferred capital projects and “growth opportunities” leading to new revenue and boosting tourism at a cost of $285,000.
Also removed from a list of recommended spending are several million dollars aimed at spurring low-cost, high-value investment in existing communities as part of $13 million in reductions asked for by councillors last spring.
A proposed 5.6 per cent tax increase in each of the next two years will pay for some program increases and inflation, and make up for less operating revenue from the provincial government, finance officials say.
Council heard the original capital proposal in June, and received the revised version in November, when administrators said cuts only made up for falling power profit expectations.
Among projects recommended in June, but now shelved in a final list, is further work on a $5-million northeast sewer expansion.
Elsewhere in the utility division budget, staff now recommends pausing plans to provide $500,000 over two years to help cover costs of upgrading homes to 200 amp service.
That was pushed for by Couns. Robert Dumanowski and Alison Van Dyke at committee, who said that 200-amp service could become the standard and Medicine Hat as a unique utility provider needed to address the costs sooner and spread costs across the entire rate base.
“I’m disappointed,” Dumanowski said in November. “Compared to the whole (city budget) it’s a very small ask. We know demand (for more power) is increasing, and a cost-sharing program in the municipality is reasonable. This sets us back.”
Currently, homeowners requesting a larger connection than 100 amps could face the entire charge, up to $40,000, to upgrades on local transformers that typically serve a dozen homes.
Staff say upgrading to serve all customers (200 amp is required in newly built homes) could cost $300 million in total.
The coming two-year $220-million municipal capital budget includes $193 million in infrastructure maintenance and replacements in municipal and utility operations.
About $29 million relates to other “growth” projects, and the entire amount is $26.9 million less, about 10 per cent, than the 2023-24 list.
Other projects now deferred until 2027 or later include $1 million for city-wide study of “under utilized” land, potentially to buy, demolish and resell vacant lots. Another $3 million would pre-emptively increase utility servicing to some mature neighbourhoods. That is meant to ease the process of redevelopment, thereby boosting the tax base without adding costs associated with new subdivisions, a city policy since 2017.
A $2.6-million plan to provide development incentives is still in the proposal, but details are to be determined in early 2025.
Among other items cut from the final capital proposal list:
– $5 million, phase 4B of the Brier Park gravity bypass;
– $500,000 for a water management masterplan that utility staff promoted as crucial in the drought-prone area;
– $300,000 for pump track BMX;
– $150,000 for city owned weather stations that municipal works officials said would lead to better snow clearing response.
– $250,000 for museum investment to coincide with the 20th anniversary of the Esplanade Archives.
– $250,000 to develop a permanent snow dump facility;
– $250,000 for future engineering work to improve Third Street NW, Kingsway Avenue and Industrial Avenue;
– $150,000 community-based programming;
– $150,000 for Dunmore Road light optimization;
– $125,000 for a transit masterplan;
– $75,000 to build a business case for an emergency personnel training centre with Medicine Hat College;
– $30,000 for Towne Square events.
Major items that were deferred in an original capital plan list included $2 million to instal large solar arrays on large-roofed city facilities (Co-op Place, fleet garage, etc), and $2.5 million to instal new irrigation at the Gershaw Drive highway overpass.
Several new positions are also deleted from the final draft, including a police service media co-ordinator, promoting an existing parks manager to become an operations superintendent (with pay raise), and hiring a new city training co-ordinator.
