Former candidates look to form ‘ratepayers association’
By Collin Gallant on May 29, 2018.
cgallant@medicinehatnews.com @CollinGallant Two candidates in the last civic election would like to form a “ratepayers association” to key in on municipal spending and advocate for lowering costs. Michael Klassen and Myles Mulholland ran similar campaigns in October 2017, calling for a halt to tax hikes and increased financial oversight. They didn’t win seats but would now like to form a group of residents to delve into budgets and suggest cost cuts or service improvements. “People from the community approached us after we ran, and we felt there needs to be a community voice bringing forward the concerns of ratepayers,” said Klassen. “(It’s about finding) concepts about how the ratepayers can have a more fair and equitable relationship with City Hall. “It’s researching and looking at the numbers and being an advocate for the community.” The size of the municipal workforce, local millrates and taxation levels, and city debt levels are large examples, he said. Changing seemingly small operational matters, such as facility booking being handled by computer programs, for example, should be non-controversial, he said. The men are involved in a number of conservative political causes, but say the new organization isn’t connected to their work for provincial or federal political parties. “We don’t see it so much as being in opposition to everything,” said Mulholland. “We’re trying to provide a second opinion.” The pair said work should begin comparing tax rates in near-region, such as against Redcliff and Cypress County, as well as mid-sized cities in Alberta, such as Lethbridge and Red Deer. There needs to be a “competitive advantage” for Medicine Hat, say the men, especially against larger mid-sized centres it compares itself to. “There are issues of scale, but there is work that can be done in Medicine Hat,” said Klassen. “Some might be easy to implement, some might be a challenge, but we want to be that advocate.” They hope to spend the summer gathering members, then launch the organization officially in September. Until then, they are soliciting feedback and answering expressions of interest on a Facebook page titled Medicine Hat Ratepayers. Since late 2016, the city’s budgeting strategy calls for cuts to be brought in to lessen tax increases to balance a budget left with millions in revenue shortfall from low oil and gas profits. This year alone, $16 million in reserve funds will be used to make up the difference while taxes are gradually increased to fill the hole. That said, planners and many council members have said that, combined, the Medicine Hat tax and utility costs are some of the lowest in Alberta. This year, the city will begin work on establishing new service level expectations which could lower costs and make more off tax increases that have been in the 4 to 5 per cent range for years. Over time, the size of the workforce, as well as large debt, has typically been explained by administrators and council members as the result of utility operations. A publicly-owned petroleum exploration company is a unique enterprise among Canadian cities. The Medicine Hat power plant is the last municipal power plant in the province, while most other cities spun off its energy business units into companies that report employee totals separately. The 2017 city annual report states that over 12 months the total number of city employees rose by eight, to 1,089. City debt sat at $323.5 million at Dec. 31, 2017, about 85 per cent of which related to utility operations. 23
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