City Newsroom

Print
Press Enter to show all options, press Tab go to next option

City Council Approves 2019-2022 Budgets

Post Date:12/17/2018 10:47 PM

Medicine Hat – City Council approved its 2019-2022 Municipal Tax Supported Operating, Major Operating Expense, and Tangible Capital Asset budgets, as well as Land and Business Support operating and capital budgets at Monday night’s Council meeting.

The budgets will provide the financial foundation for the City of Medicine Hat to deliver on Council’s six strategic priorities: fiscal responsibility, economic vitality, infrastructure renewal, community safety and vibrancy, sunshine hospitality, and city government.

The budgets also support the assumptions and targets established by the Financially Fit for the Future Initiative. When the initiative was adopted in 2016, the City was experiencing a $23 million gap due to a loss in energy dividends from City-owned utilities. Through cost-containment, service level adjustments, and user fees, this gap has been reduced from $23 million to $16 million over the past two years and will be further reduced to $7 million over this budget period.

This is the first time the City has developed a four-year budget plan, necessitating a much longer-term view into the future. The 2019-2022 budgets were developed by applying the following key principles: financial sustainability and resilience; stable and predictable tax environment; user pay principle; market based pricing for utilities; and continued rehabilitation of aging infrastructure.

Budget Summaries

                                                                                                                                                           

Municipal Tax Supported

(in thousands)

2019

2020

2021

2022

Operating

$193,462

$198,048

$201,777

$205,001

Major Operating Expense

$1,095

$1,466

$1,341

$1,329

Tangible Capital Asset

$25,248

$25,651

$23,890

$24,084

 

Land and Business Support

(in thousands)

2019

2020

2021

2022

Operating

$8,195

$10,571

$14,525

$14,781

Tangible Capital Asset

$19,150

$3,600

$7,150

$0

 

Residents will see a 4% annual property tax increase.

The budgets balance competing needs and priorities and respond to the community’s expectation that the City will ensure appropriate programs and services are delivered in the most effective manner. “These four years are critical to establishing a sustainable operational budget for the suite of municipal services that does not rely on profits from our commodity based energy businesses,” says Brian Mastel, Commissioner of Corporate Services. “Despite budget challenges, maintaining the Medicine Hat advantage continues to be a priority. This is being done by pursuing strength in the economic base, proactive reinvestment in infrastructure, offering high quality public facilities and amenities, community safety, and a continued tax and utilities advantage compared to municipalities across Alberta.”

 

-  30 -

For further information, please contact:

 

Brian Mastel
Commissioner of Corporate Services
403.529.8231

Return to full list >>