New council needs more time to review proposed changes to the city's already approved 2026 budget following a lengthy public meeting Monday. Amendments are to be discussed during council meetings in December.--NEWS PHOTO BRENDAN MILLER
bmiller@medicinehatnews.com
“Biting the bullet” after hearing of a budget gap topping $8 million and a need to maintain 5.6 per cent tax increases to save reserves, councillors approved a motion to postpone several budget amendments until its next regular meeting.
Following individual presentations on the Tri-Annual Management Report, which highlighted the city is spending more than it is generating in revenue, and could see its reserve budget drained in eight years if current trends continue, council received three more key budget presentations on changes in the energy and utility sectors.
City staffers presented proposed budget changes for 2026 electric generation and gas production, plus the land and real estate and utility rate bylaws.
The postponement is intended to provide the new council an opportunity to further review proposed budget changes that are relative to an already approved budget but require more time to study.
Councillors also have to set new utility rates for 2026. In total on the operating end of the 2026 budget the city is seeking an increase of between three and four per cent to continue providing its current level of service.
The city is seeking council approval for a new gas and electric utility rate increase toward its Municipal Consent and Access Fee that would increase the average residential monthly utility bill by $2.25 for electrical and $0.81 for utilities, year over year for a total increase of $3.06.
“The 2026 rate-based utilities budget will impact customers differently depending on usage, depending on their rate-class,” explained Jasmin Gross, energy marketing and business analyst. “For highlighting purposes here, the average residential customer will see an increase of roughly three per cent a month.”
Staff say they hope council is able to approve new rates before the new year, however if needed, this decision can be delayed if required.
Joel Higgins, energy marketing and business analyst, then presented proposed changes to next year’s Electric Generation Operating Revenue and Expenditure Budget, Electric Generation Capital Budget and Natural Gas Production Operating Revenue and Expenditure Budget.
Higgins informed council on commodity price forecasts with an overall increase of $5.6 million to net earnings and a $15.6-million bump to Tangible Capital Assets, which are proposed to be funded through Working Capital and Capital Reserves.
Higgins says his presentation was based both on new market trends which determine or drive energy production, and that the city does not request changes to operating costs next year, which were already approved in 2024.
“Time has passed since then in the volatile commodity market. We have looked at updating the models with the most recent forecasts,” said Higgins. “I’m going to be reviewing some of the major factors that were updated that are driving the changes that you’ll see in amendment requests.”
Those changes include price forecasts for power and gas, carbon compliance costs, critical capital maintenance scheduling and capital equipment needs.
These proposed changes are expected to be further discussed during the next public meeting on Dec. 8.
Randi Buchner, manager of land and real estate, presented on proposed tweaks to the 2026 Land and Real Estate Bylaw.
Councillors heard the department exceeded its 2025 land sales goal by reaching revenue of approximately $4 million, with an additional $1 million pending before the end of the year.
Since land capital projects are funded through future sales they do not affect the overall budget availability.
Proposed conservative changes to Land and Real Estate will also be discussed at the next regular meeting on Dec. 8.
