City council approved a motion Monday to affirm authority to set and regulate all electric and gas utility rates and fees.--NEWS PHOTO BRENDAN MILLER
bmiller@medicinehatnews.com
City councillors approved a motion Monday to move forward with establishing a rate review committee that will serve the purpose of allowing council to publicly set utility rates.
The previous rate review committee was defeated and council has now affirmed its authority to set and regulate all electric and gas utility rates, fees and charges under the city’s Gas and Electric Utility Bylaws.
Fees would be presented during a public meeting annually for council’s approval.
The committee is being established following the defeat of a municipally controlled corporation last summer and the issue of whether the parallel rate review committee would be the decision maker setting rates.
Following several options presented to past council on decision-making authority and relative costs of a parallel rate review committee, members quashed the motion.
Staff have now recommended to “remain status quo” and have council as the rate regulator.
“We’re saying status quo,” said Coun. Bill Cocks. “We’ve looked at all the options. We’ve been through an election. The previous council said ‘no’ to the MCC but they hesitated with the rate setting.”
Cocks says voters expressed a desire during last October’s election for city council to set utility rates, not an outside authority.
Mayor Linnsie Clark, the only member of council who voted against the motion, felt the benefits of hiring outside consultation would provide additional skill-based advice to council.
“Sometimes it is helpful to have that extra set of eyes and perhaps a different perspective on what is a very complex industry,” said Clark. “I would like to have an opportunity for the public to provide additional input or consultation, and the corollary of that is an explanation of why. Why are our rates the way they are and help increase understanding within the community.”
Cocks disagreed and says current councillors have the skill set required to set rates.
“I know this is not necessarily your perspective Mayor Clark, but I’ve seen it in staff memos and I’ve seen it along the way, I was here at the meeting that defeated the MCC watching from the gallery. We have all the resources we need, we have lots of opportunities for the public to have input.”
Coun. Ted Clugston said one of the most difficult jobs of council is to set rates within Medicine Hat’s publicly owned utility compared to privately owned utility companies.
“The difference is this is a publicly owned utility and we are the public elected officials to make decisions on its behalf. Oftentimes we don’t always make the right decision because of public pressure,” said Clugston.
“This is our job, it’s the hardest job, I’d say in a municipality in Alberta, in making these decisions.”
Budget committee
Councillors approved a motion to make changes to the Procedure Bylaw to allow for the establishment of a new standing committee called the “budget committee.”
If approved, it would serve to streamline the annual budget process and explore new priority-based budgeting with a goal of enhancing fiscal responsibility.
Public hearings
Council unanimously approved two Land-use Bylaw changes following a pair of public hearings.
Changes to the boundaries of city-owned Municipal Reserve and Environmental designated parcels were changed to create Public Utility Lots for existing berm infrastructure to accommodate ongoing maintenance.
Council also approved rezoning changes for 1850 S. Boundary Rd. from Future Urban District to Direct Control District for the purpose of developing a mixed-use site.
Dishonoured payments
The fee for dishonoured payments, when a bank refuses to process a payment due to insufficient funds, will change from $44 to $10 in April following a motion approved by council.
The fee is designed to encourage customers to avoid insufficient fund transactions through their financial institution and to offset the city’s administrative costs.
The change takes effect April 1 and is in line with new federal regulation that caps NSF fees changed by federally regulated banks.
City manager
As the city continues to seek a new full-time CAO following termination of Ann Mitchell last October, current interim city manager Joseph Hutter will continue in the role until October.
Hutter was hired by the city in the fall of 2024 and assumed the role of director of public services.
Hutter was originally appointed to the interim role until the end of March.
