City to receive $7M COVID top-up

By COLLIN GALLANT on October 1, 2020.

cgallant@medicinehatnews.com@CollinGallant

The City of Medicine Hat could receive up to $7 million as its share of a federal-provincial ReStart fund to cover extra cost and lost revenue from the COVID-19 pandemic, the News has learned.

That money would fill specific gaps in the city’s current operating budget this year as well as some costs until March 2021.

Local budget officials, however, have said their mitigation efforts have kept direct costs low, and prior to the grant, stated they were moving toward a budget surplus at year-end.

“We’re really pleased with the support,” said corporate services commissioner Dennis Egert. “There are direct costs, and some more indirect items … we’ll test those areas and see which would qualify.”

That could include portions of $8.2 million in reserve funds that council accessed to pass a COVID relief package in May. Of that, most relates to cancelling a property tax increase this past summer, but also earmarked funds for private business support grants, charity groups and financial carrying charges.

Details of the Municipal Operating Support Transfer (MOST) were forwarded to council last week.

It follows the Sept. 16 announcement of the $1.3-billion Safe ReStart agreement between the federal and Alberta Government.

Specific to municipalities, Ottawa and Edmonton will each cover half of the up to $606 million allotted province-wide to help cities, towns and counties deal with COVID costs.

Cypress County would be eligible to receive up to $780,800, according to a schedule obtained by the News – Redcliff $572,000, Bow Island $211,900, and the City of Brooks $1.47 million.

Direct costs include things like installing physical barriers, providing protective equipment and certain staffing costs.

In Medicine Hat, for example, operating the emergency operations centre for three months last spring cost $474,000.

The city lost revenue in transit, recreation facilities, planning (due to lower building permit revenue) and other areas, however financial reports suggest it was partly and, sometimes mostly, offset by lower staffing and utility expenses.

Medicine Hat finance officials are tracking the effects and will have to submit them for approval, said Egert, adding a general update is due in October as the city releases mid-year financial statements.

He also reiterated whole-year cost forecasts of $2.4 million, made in June are in line, but the city is actively working to mitigate that.

“We do plan on being on-budget for the year,” he said.

Money announced in the new “MOST” program is apart from an estimated $7-million share Medicine Hat would receive as part of a Municipal Stimulus project.

Specific to MOST, Medicine Hat would be eligible to recoup up to $6.41 million in lost revenue or additional costs, and another $540,000 specifically related to transit.

As well the province previously forwarded some operating grants ahead of schedule, specifically a $400,000 portion of the Municipal Sustainability Initiative.

Calgary’s MOST allotment would total $202.5 million, and Edmonton’s $158.2 million.

Of the $660-million total, $140 million is specific to transit operations, while Banff, Canmore and Jasper will share in a $10-million pot specific to tourism-dependent locations.

Other municipalities (and amounts) in the southeast region include County of Newell ($766,900), Foremost ($59,800), Oyen ($108,500), Vauxhall ($128,700), M.D. of Acadia ($54,900), Empress ($20,700), Cereal ($16,200), Taber (town, $858,400), Taber (M.D.$731,100), Duchess ($114,900) and Rosemary ($45,100).

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