Couns. Phil Turnbull (right) and Jim Turner talk following Monday night's city council meeting in Medicine Hat. Council approved a motion by Turnbull to create a new round of reserve spending to fund a $4.5-million COVID-relief package for citizens, the details of which are to be determined and presented in August.--News Photo Collin Gallant
cgallant@medicinehatnews.com@CollinGallant
City staffers will develop a $4.5-million second round of COVID relief for Hatters after council members voted 7-0 Monday night to support the emergent item from Coun. Phil Turnbull.
In May 2020, council approved nearly $8 million in reserve funds to be spent half on property tax abatement, one quarter on direct grants to businesses struggling in the early stages of the pandemic and the rest on local charitable causes.
The new program will be presented at council’s next meeting, Aug. 3, including options that could range from more tax relief, new capital spending, utility relief or a variety of measures, said Turnbull.
“Here we are coming to the end of a difficult time; We have a rainy day fund and if this is not a rainy day … we have a responsibility to act,” he told reporters following Monday’s meeting.
“I’d like to cut everyone a big cheque but we still have financial work to do at the city.”
The 2020 program used money from the community capital fund and brought in a zero per cent tax increase (since made permanent by budget cuts), up to $15,000 grants to businesses, matching funding for the Community Foundation and cash for utility bill forgiveness.
The heritage fund is currently worth $49.8 million, according to city financial statements presented last month, and since dividend policy that governs deposits changed this year, only $1.3 million is expected to be added, mostly through investment returns.
Other cash from business units is earmarked to stock a new operating reserve, but Turnbull says an electric generation department is now forecasting a strong year, and the COVID program could be paid for before dividends and deposits are calculated.
The fund’s governing policy states that in any given year withdrawal can only be made in the amount of annual return above inflation plus.
Mayor Ted Clugston, who was a big promoter of the fund’s creation as an endowment from gas and power profits, supports the move.
“It is described as a rainy day fund and you could call what’s happened in the last 16 months a monsoon,” he told reporters.
Council will not hold a second meeting in July – it typically schedules a break in either July or August – so administrators will present initial options to council members, then present a final draft during the first week of August.
“We’ve held taxes in line and we’re seeing light at the end of the tunnel,” said Turnbull. “But people are hurting.”
He says he would prefer the new relief money go to individuals and somewhat uniformly.
Tax bills for 2021 were payable last week.
“We were working today on what’s the best way to approach this,” said Clugston.
“The first (relief) involved incentives for the business community, but this will be different if it goes through … But the motion asks staff for recommendation about what’s the best thing to do, and that could be anything, really.
“I don’t want to call it ‘Ralph-bucks,’ but it will help the community relaunch.”
COVID update
City emergency manager Merrick Brown received a standing ovation from council members after his final regularly COVID-19 update Monday.
Most city facilities are back to “near normal” operations after the province lifted health restrictions last week, he said. Hospitalizations are low and vaccination rates in the city and province are impressive.
“We should be proud of where we are, but we should be cautious,” he said, stressing the virus, which led to major disruption in business and personal lives, is still in the community.
City operations and facilities no longer have capacity limits, nor requirements for staff or visitors to wear masks (aside from on city transit). Plexiglass barriers however, will remain in place for some time.
“We want people to feel welcome, but also safe,” he said, saying internal operations, like utility services, are still on heightened status.
Mayor Ted Clugston thanked Brown for the at times weekly updates to the public and to council on city operations and interpreting provincial announcements.
“I know that I pushed hard back at you, but publicly we did support every single recommendation you made,” said Clugston, who called the city’s decision not to call a local state of emergency “steady, stoic leadership.”
