Underused Fair Entry program extended

By COLLIN GALLANT on December 6, 2023.

cgallant@medicinehatnews.com@CollinGallant

A program that offers $1,200 in utility credits to low-income earners in Medicine Hat will be extended into 2024 in part because not enough Hatters took part in the initial year.

In late 2022, city council dedicated $2.3 million to a “Fair Entry Relief” program for utility payments based on a staff estimate that 6,000 Hatters could qualify under a federal income threshold. A 50 per cent uptake would use up the specific amount.

On Monday, council heard that even though individual outlays were quadrupled during the last year, only about 900 applicants had signed on.

That leaves $1.2 million unspent, which will be used to extend the program that provides an average of $100 per month credit on utility bills to single Hatters earning less than about $25,100 per year, or a couple earning about $31,100 in 2022.

Councillors said considering outcry about utility bills this year, the program is needed, and people living at those income levels require continued aid.

The program may need to the more heavily promoted, said Coun. Alison Van Dyke, who says she works in the social services sphere and is surprised more people are not taking advantage.

“I am forever meeting people that could use this program, and having to tell them about it,” she said.

Despite the added year, no additional funds are required, said corporate services managing director Dennis Egert.

“The funding would be the utilization of funds approved last year but weren’t used,” he told council. “The request is to carry that (money) forward into 2024 and continue the program.

“The people we see in the program will continue to require that sort of support.”

The credit system was originally devised as credits of $300 over the course of the year, allocated in $50 monthly credits during the six highest use months of the year.

That was increased in July to $1,200 for the year with the difference added to monthly bills through the rest of 2023.

Still, only about 900 applicants signed on to the program, only one-sixth the original estimate.

Going forward the program would remain at $1,200 spread out on bills throughout the year.

Coun. Shila Sharps questioned why the extension of the one-year program to cover 2023 and 2024 was not included in the annual budget update approved late last month.

“I love the program and think it’s great,” said Sharps. “But if it’s not being used, why are we doubling down?”

“There may be ways to look at excess funding for ways to better the community.”

Coun. Robert Dumanowski said that because the program was underspent, it’s an opportunity to extend it.

“We either return it (to reserves), or we spend it,” he said. “It can be an equalizer for people who meet that threshold as low-income earners.

“We should be proud of it.”

Coun. Allison Knodel said she would support making the program permanent in the next city budget.

“Under-subscribed or not, there are still people who are in need of this, and those who are in need of this are truly in need.”

The value of other programs and subsidies in the Fair Entry Program are not changing after benefits increased for 2023.

The program reduces the cost of recreation passes and entry to regular programs at the Esplanade by 75 per cent, up to a maximum of $200 per person per year.

The program will also cover up to 75 per cent of the cost of monthly bus passes, to an annual maximum of $630.

Those who apply and qualify for the program will now be enrolled for two consecutive years, according to administrative changes approved on Monday night.

Staff say that incomes are not likely to change substantially year-to-year and the requirement will lessen administrative burden and work for applicants.

Low-income thresholds to access City of Medicine Hat’s Fair Entry subsidies (size of household and gross income on 2022 tax filing):

– Single: $25,146

– Two-person: $31,304

– Three-person: $38,484

– Four-person: $46,726

– Five-person: $52,996

– Six-person: $59,771

– Seven and more: $66,546

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