Jaret Dickie, manager of corporate strategy and analysis, presents to council on a potential non-profit operating grant program, which was defeated.--NEWS PHOTO BRENDAN MILLER
bmiller@medicinehatnews.com
Council voted 6-2 this week to squash a proposed new operating grant program for organizations in the city at the cost of potentially rising taxes by up to 4 per cent over three years.
In March council approved a motion from Coun. Cassi Hider seeking to develop options for a new non-profit operating grant program, which would enhance the current non-profit capital grant program
After a review of historical grant allocation made by the city between 2019 and 2024, as well as comparing non-profit grant allocation with eight midsized municipalities in Alberta, four options were presented to councillors during an open meeting Monday.
“Community requests for operation grants have been on a steady rise over the past six years,” said Jaret Dickie, manager of corporate strategy and analysis. “Funding requests for community programs such as family and community support services, community vibrancy grants, micro-grants all continue to exceed the current budgets.”
Four options were presented to council to vote upon, including maintaining status quo or three options to develop a new operating grant program for local non-profits with various degrees of funding.
According to data collected from previous grant allocations and same-sized communities in Alberta, non-profit allocation ranges from more than $600,000 to more than $4.7 million annually.
City staff recommended council approve the fourth, and most costly, option presented by Dickie, which would see the development of the operating grant program funded through the 2027-28 tax base and 2025-26 operating reserve budget.
“This program would provide a stable and predictable revenue source to support the program,” explained Dickie. “The cons of this option are that establishing an ongoing program commits a defined portion of the annual operating budget, which may impact long-term financial targets and tax rates for citizens.”
Dickie told councillors that for every $100,000 allocated to an operating grant, Medicine Hat residents would pay an increased 0.1 per cent in taxes. The allocation proposed was between $1 million and 4 million, meaning residents would see a combined 1 to 4 per cent more in taxes over the years of the program
“For us to generate $1 million in revenue, it’s basically a 1% tax increase,” said Coun. Darren Hirsch. “As much as I used to be in the non-profit world, I can’t support this.”
Hirsch says he is concerned the city is not meeting its current financial budget and this would drive further tax increases, which he is opposed to.
“We are in an operational deficit right now to the tune of $9 million and we’re asking to be in the deficit of $10 (million) or $13 million if this goes through.”
Coun. Allison Knodel echoed Hirsch, saying throughout the municipal election campaign, she has heard concerns from citizens about the rising cost of living.
“The community is struggling financially, generally speaking, and reaching outside of how we currently function as an organization for more revenue, I feel like that feels wrong at this point in time.”
Coun. Andy McGrogan also shared his thoughts on increasing taxes.
“I’ve been talking to a lot of folks the last month and I can tell you that our tax rate and our budgets are of the utmost importance to them right now,” he said.
Mayor Linnsie Clark and Hider voted in favour of the motion.
