Municipal Matters: City’s budget process a real balancing act

By Dennis Egert on November 7, 2024.

As we move through the process of developing, presenting and approving the 2025-2026 city budget. we are guided by the overarching theme of balancing the needs of today with the requirements of tomorrow.

What do we need to do today to prepare for tomorrow to maintain the advantages that we enjoy today? The city’s budget development process is a complex and careful balancing act, shaped by the need to operate as a going concern and abide by laws prohibiting municipal deficits.

The city’s budget is structured across four primary business units: energy production, rate-based utilities, municipal, and land & real estate and economic development. Each unit has its own needs and priorities within the operating and capital budget structures, which ensures resources are allocated effectively and responsibly across the city’s diverse functions.

The budget process officially began in mid-2023, and was first publicly introduced on April 23 when city council held an initial planning session to align on key budget assumptions. These assumptions have guided decision-making as the city prepares its financial blueprint for the coming years.

Throughout the summer, city council held sessions to discuss growth opportunities. On June 25 and July 9, council examined options to improve quality of life in the community by investing in new services, programs, operational initiatives and capital projects.

In the fall, deliberations shifted to core operating needs. On Oct. 22, council reviewed rate-based utilities, including water, sewer, solid waste and energy distribution systems, followed by an Oct. 30 meeting on energy production budgets, which cover electricity generation and natural gas production. These discussions ensure the city’s essential services remain sustainable. Municipal budget discussions occurred just this week on Nov. 5.

The final portion of the budget – land & real estate and economic development – will be presented on Nov. 13. Residents are invited to attend in person or via live stream, ensuring transparency into the city’s fiscal decisions. The utility rate bylaws, which set utility rates that support the budgeted revenues in the budget framework, will be introduced for first reading to council on Nov. 18.

The culmination of all these efforts will occur on Dec. 2, when council meets for final budget deliberations. A public hearing on Dec. 16 will allow residents to voice opinions on utility rate changes before council votes on the rate bylaw.

This budget process reflects the city’s dedication to balancing service delivery with fiscal responsibility, ensuring sustainable growth while meeting the needs of all residents. For further updates, residents can follow along on the city’s “Shape Your City” platform.

The budget team remains committed to a transparent and thoughtful process as the city prepares for the future.

Dennis Egert is the CFO and managing director of corporate services for the City of Medicine Hat