City council on Monday announced its COVID Support program, an $8.2-million fund available in economic relief due to the pandemic.--NEWS FILE PHOTO
cgallant@medicinehatnews.com@CollinGallant
The City of Medicine Hat will make $8.2 million in reserve funds available for a COVID Support fund that cancels a planned property tax increase this year and puts up to $4 million toward community groups and economic development.
Council members unanimously approved the “COVID Hat Support” package at Monday’s meeting, with many stating they were “proud” of the community’s response to the pandemic and that the city can augment financial support from other governments.
“We’re experiencing something we never dreamed of, and we know many in our city are financially hurting,” said Coun. Phil Turnbull.
“My heart tells me that this city can come together in trying times,”
The sentiment was echoed by other councillors who credited Coun. Darren Hirsch as a driving force behind the plan.
The fiscally hawkish councillor said that Medicine Hat faced “enormous financial challenges” prior to COVID, namely the loss of natural gas profits, and a hardline “financially fit” budget plan to rebalance the budget, as well as cuts in the last provincial budget.
“We need to put aside our ‘financially fit aspirations for the time being and support our community,” said Hirsch.
Mayor Ted Clugston said he was “extremely proud” of all nine council members who had input into the plan that will see money from the City’s Community Capital reserve released. A total of $3.9 million will go directly to cancel a planned 3.5 per cent tax increase this year, and another $300,000 to cover the cost of deferred utility bills this spring and moving tax collection date from late June to Sept. 30.
Other measures provide:
– Up to $2 million for Community Futures-Entre Corp., which supports business startups and expansions, to be outlayed in $500,000 tranches;
– $1 million for unspecified economic development activities at the direction of city chief administrator Bob Nicolay.
– Up to $1 million in direct grants to the Community Foundation of Southeast Alberta and Community Warmth program (run by the Salvation Army and St. Vincent de Paul society to avoid utility disconnections).
Aside from tax relief and administrators’s fund, the funds will be released in blocks – a structure that Coun. Jamie McIntosh said gives the city flexibility to adjust, pull back funds or move to allocate more funds in the future.
“We have to remember that we don’t know what this looks like in three months, in six months from now,” he told council.
Coun. Kris Samraj also stressed the economic and social conditions caused by the pandemic are changing and the city may need to re-evaluate as soon as this summer.
“It’s not going to be perfect,” he said, outlining his reservations about business grants and the potential for controversy.
Coun. Julie Friesen said economic rebound will be needed and the city will support business and job creation.
Councillors also said the timeline was developed over the course of nearly two month to fill gaps in other government supports, not duplicate efforts, and meet the greatest local needs.
“Our pockets aren’t anywhere as deep as the provincial or federal governments,” said Coun. Jim Turner. “This pandemic will have long-term consequences on all of us.”
Coun. Robert Dumanowski called the COVID “profoundly unique … We have a responsibility to rise to the occasion, and we’re not outside of doing our part.”
Coun. Brian Varga agreed, saying “we’re lucky to be in a city that can help out like this.”