City Coun. Darren Hirsch discusses utility rates during Monday night's city council meeting.--News Photo Collin Gallant
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Ho ho hold the budget, Coun. Andy McGrogan requested Monday, so city hall managers can somehow find another $3 million in cost reductions to lessen a proposed 5.6 per cent tax increase next year.
That was defeated by a 7-2 vote however, as council colleagues cited the need to maintain city services, ongoing work to arrest costs and the need to have a budget in place for Jan. 1.
City council passed the 2025-2026 budget Monday, which will add about $140 to the average residential tax bills next summer after actual rates are determined.
A motion from McGrogan and seconded by Coun. Shila Sharps requested that additional work be done across the division to find another $1.5 million in savings next year to bring the increase down to 3.9 per cent.
In the end it was defeated with only them voting in favour.
“A 4 per cent (increase) is needed to maintain proposer compensation for staff to address inflation and take advantage of new growth opportunities,” McGrogan said to council.
“All city leaders should have actionable plans and know where efficiencies can be found … Everyone of our constituents will have to make ends meet and there is no reason why we can’t do the same … limiting the tax increases to something less than 4 per cent, and certainly less than 5.6 per cent.”
The motion came after council and budget officials met seven times this year to discuss the two-year plan, with a final recommendation coming earlier this month.
That was held over until Monday as staffers were asked to clarify implications of a proposed $250,000 grant for HALO air rescue society, a potential regional partnership for a composting facility and an overview of costs for contracting out several planning and strategy projects.
Mayor Linnsie Clark said she too felt frustration with the budget process, but the city is required to have one in place by Jan. 1.
“There are priority areas,” she said, noting blanket cuts could be counterproductive. “We could pass this budget then amend it at any time.”
City finance officials say the increase is needed to fund the city’s $89-million budget next year, including two new police officers for downtown, other money for growth, or to account for inflation, without using more reserve funds.
On Monday, staff said a workforce overview is planned for next year, and budgeters state that $2 million in further savings will be found in 2026.
“We’re trying to be strategic, but in the meantime, it’s not like we’re in inaction, there’s a hiring freeze on now,” said CAO Ann Mitchell. “In the past we’ve seen this organization do things in a quick manner with negative results.”
Coun. Shila Sharps backed McGrogan’s proposal.
“I think zero per cent would be irresponsible … but I can’t justify 5.6 per cent,” said Sharps.
Finance managing director Dennis Egert said the dollar amount of a 1.7 per cent decrease would be $3.5 million over the two years.
Department managers were ordered to absorb non-wage inflation in departmental budget requests.
Coun. Ramona Robins said delaying cost increases would lead to larger rate increases in future years.
“We (council) voted to spend money that staff recommended that we didn’t,” she said, noting the reopening of the Moose Rec and Crestwood Rec centres, and $33 million in utility relief last year.
“That has to be paid … 1.7 per cent (in cuts) is a shot in the dark at this point.”
Coun. Robert Dumanowski said he felt council has had ample access to the budget this year, and that residents rely on the city to fund services properly.
“Service levels and programming are of serious concern to a majority of Medicine Hatters,” he said, stating the “nominal decrease” by cancelling some new projects would have “significant ramifications.”
“I’m not prepared to remove new downtown patrol (officers),” he said. “That’s the No. 1 priority in this city by a country mile.”
Coun. Allison Knodel said the city is doing a workforce review and project amendments to find if cuts could come forward in the new year.
“This council has been reactionary in every way, and I’m not proud of that,” she said.
Coun. Darren Hirsch said the city and council has tamped down expenses and provided a 2.5 per cent tax increase over three years from 2020 to 2022.
“We’ve had our crisis during COVID,” he said, also noting utility relief in 2023 and expanded support for non-profits in the city, and a potential south-side rec centre decision in the next budget term.
Coun. Cassi Hider said the city has a responsibility to provide amenities, including a south-side rec centre proposal that is currently not budgeted.
At press time, council was still debating the inclusion of a $250,000 grant for HALO air rescue helicopter society and the fate of a food waste composting facility – the largest single capital budget item at $9.5 million.
