A crew from GFL collects recycling from residential carts on the Southeast Hill in this March 2024 file photo.--News File Photo
@@CollinGallant
Non-energy utility rates could would rise by just one per cent in 2025 for residential account holders, according to a budget proposal for several departments presented Tuesday.
That however, would largely be the result of planned elimination of recycling fees next spring and lower franchise fees, though administrators say escalating costs in other departments are being contained by operational changes.
“We’ve built a budget based on affordability,” said Jarret Dickie, manager of municipal services business support, during budget discussions with council members this week.
“Sustaining investment is key to maintaining the system and service from customers … and we want to make sure that revenue is sustainable.”
Council will debate the final proposal in December when rates are approved, but appeared to give the initial OK during discussion.
“To bring a one per cent increase in this day and age is unheard of,” said Coun. Darren Hirsch.
Other council members questioned how maintaining sewer, water, waste collection systems, as well as gas and power, would be affected by the “austere” nature of the new spending.
“I want some assurance that we’re not hot-gluing together projects that need to go ahead,” said Mayor Linnsie Clark.
Tuesday’s meeting was the first of four weekly committee of the whole meetings scheduled until mid-November regarding the 2025-2026 city budget.
Tuesday’s session involved budgets and business plans for the environmental utilities department along with gas and power distribution.
The energy business units – the power plant and natural gas production – will be discussed on Oct. 30.
Overall utility fees, not including commodity rates, could cost an average household an additional $3 per month, despite high inflation on specialized materials required in the sector.
Key in the final outcome is that next April, the city will reduce a recycling charge for curbside recycling by about $6 per month on average residential accounts as the provincial system of Extended Producer fees comes into force. That will charge production companies to pay recycling upfront. The system will reimburse municipalities for handling paper, plastic, tin and glass, which in Medicine Hat’s case, eliminates pickup fees.
Coun. Darren Hirsch said the elimination reduction should be highlighted.
“The talk in the community is about how once we add a fee it’ll never come off,” he told the meeting. “This one is coming off, rebated to the customer.”
Along with the recycling reduction, a six per cent drop in the Municipal Consent and Access Fee on gas and power distribution is proposed. Together they help offset proposed increases to gas and power delivery system charges totalling $15 per month on average next year.
Analyst Jasmin Gross cited inflation for gas and electrical components above 12 per cent while compliance work is increasing.
Distribution manager Grayson Mauch said operational changes will allow departments to absorb much of that extra cost.
Overall, the fee changes would raise the average residential monthly bill from $239 in 2024 to $242 next year.
Commercial rates would also see a reduction in MCAF charge, but a five per cent overall increase largely due to higher water charges that will be spelled out in related bylaw updates before year end.
Combined, the changes would see a business with typical volumes pay $67 more per month. Industrial customers would as well face a four per cent increase.
The fees proposal would still leave Hatters paying the lowest combined utility rates among six largest cities in the province, according to city analysis.
The utility capital budget proposals would see a total of $73.6 million in spending for projects related to maintenance and reinforcement, and $22.6 million for system growth and new services.
The combined figure for 2026 is about 10 per cent higher than in 2024, and administrators predict higher volume of service in all areas except water delivery.
The largest proposed projects are $9.5 million for a food waste and composting facility, which Dickie said is “critical for municipalities with limited landfill airspace remaining.”
A $6-million twinning of the Kipling Street booster water main is needed to avoid service disruption to a third of the city in case the 50-year-old line ruptures.
Next year, a new water treatment plant will also come online, adding about $800,000 in annual operating expense.
