Council to take on budget once again

By COLLIN GALLANT on December 18, 2021.

cgallant@medicinehatnews.com@CollinGallant

A month-long budget block will be tackled Monday as council takes up proposed amendments for 2022 that could include new money to operate two shuttered rec facilities as well as new resources for city council members and a downtown planning study.

Those four items were included at the Dec. 6 meeting, though the planning study was the only measure discussed before council members again shelved the budget asking for more background.

The rec spending – $900,000 from reserves to reopen the Crestwood pool and Moose arena next fall (after $1.2 million in repairs) – was discussed at committee meetings and a facility tour this week.

The council package released late Friday includes a breakdown of staffing changes and cost-cutting measures enacted in 2021 that helped carve $14.8 million in ongoing reserve spending out of the city operating budget.

But the open package does not include a “line-by-line” document councillors said was critical to their decision making, or a breakdown of spending and costs by departments.

“There are still some questions to be asked,” Mayor Linnsie Clark told reporters earlier this week. “We’re taking it slow, and making sure we have all the answers to know where we’re at before approving.

“We’re hoping to understand what’s not in this budget anymore, that we might not be aware of, and what’s increased that we might not be aware of.”

The planning study, said to be necessary to bolster investment downtown, would cost $250,000, the same amount as could potentially be allotted to “increase the resources dedicated directly to the mayor and council.

That would allow for “improved co-ordination of political efforts and improved communication with constituents,” according to a brief rational.

A more detailed budget for the city’s economic development and land office, known as Invest Medicine Hat, which was included earlier this month, is again included.

Supplementary material includes an overview of city-wide staffing changes requested by Coun. Shila Sharps. It states the city’s workforce shrunk by 52 positions net as staff were let go, added, or shuffled during a corporate restructuring. That includes 20 fewer positions in municipal divisions that are covered by tax supported revenue.

“Accelerated Financially Fit Initiative” documents state the city was able to raise $5.6 million in new non-tax revenue – $4 million more than initially promised – while cutting $12.2 million in costs, leading to a net $17.8 million difference.

Regarding costs, the biggest items were lower than expected wages, partly due to wage freeze with unions at $5.8 million, fleet cost reductions at $1.6 million, lower procurement costs at $1 million, police ($950,000), facility closures ($818,000) and on-demand transit ($500,000).

The cuts allowed the city to maintain a tax rate freeze in 2021, but still required nearly $8 million in reserve spending to balance the budget.

In 2022, the $7.6-million difference would be covered in thirds under a proposal to raise property taxes by 2.5 per cent, find $2.5 million in further cuts and use $2.5 million from reserves.

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