COVID revenue issues could mean trouble for certain city-ran facilities, officials revealed this week, though a plan to extend property tax increase cancellation is at least on the table.--NEWS FILE PHOTO
cgallant@medicinehatnews.com@CollinGallant
City finance officials are mulling options to extend the cancellation of the 2020 tax increase going forward, among other budget challenges that Mayor Ted Clugston says could result in layoffs and the closure of some city facilities.
A mid-year financial report presented to council Monday states that substantial changes could be coming if the city is to absorb extra costs and lost revenue related to the COVID-19 pandemic.
As well, the report states that cost-control measures and program reviews should be accelerated to close a structural budget gap.
“We’ve done better than any other municipality in the province,” said Clugston, telling reporters that Medicine Hat has done “very, very well through COVID” relative to other cities.
Medicine Hat could wind up even, financially, if it is successful applying for up to $7.5 million in provincial operating relief grants, he said.
But, he stressed a city budget update due in December could include major changes, layoffs, potential closures and program changes to address the budget.
The city’s current budget plan, passed in late 2018, calls for four per cent tax increases annually, though last year that was reduced to 3.5 per cent then cancelled for one year as a measure to support taxpayers during the pandemic.
That was paid for $3.9 million of additional reserve funds, but the rate is the starting point of next year’s tax bill.
“We’re acknowledging what’s happening in the community,” said corporate services commissioner Dennis Egert. “There’s very little appetite for a four per cent tax increase.”
He said that is only one option being considered, but the general principle is to lower costs and boost revenue.
“We’re trying to find solutions that won’t add additional burden to taxpayers,” he said.
Clugston went so far as to suggest the fate of community recreation facilities that remain closed after pandemic protocols were eased this summer is not good.
“I wouldn’t cross your fingers,” he said, referring to the Crestwood Rec Centre.
Administrators have said the older pool wouldn’t reopen until at least 2021 as the cost to comply with health orders at the smaller facility wouldn’t make financial sense considering new capacity limits and expectantly lower revenue.
As well, the Moose Recreation Centre hasn’t yet reopened this fall while city officials watch numbers at four other public rinks.
Egert said that any job reductions are typically begun with a round of potential buyouts or retirements, and that layoffs are a last resort.
Any service or programming changes in the coming budget update would need to be approved by council and would be coupled with outreach to the community, he stressed.
