$2 Million City Operating Budget Efficiency Target Met

The Corporate Services Committee meeting on Thursday.

The reality of the City of Medicine Hat’s financial position, it’ desire to lower taxes for residents and businesses while maintain service levels are becoming apparent as a municipal committee received an update on operating budget reduction efforts Thursday.

The latest gut check came during the corporate services committee meeting (which can be viewed exclusively at the bottom of this page) during a review of the city’s $2 million operating expense efficiency target.

The committee heard administrators have meet that target through staff reductions, savings from the removal of the federal consumer carbon tax on fuel, reductions in park irrigation and moving some operating expenses to the capital side of the ledger.

“We didn’t bring all the items which were brought forward because some of those items included services reductions,” Lola Barta, interim CFO, told the committee. “The next step in this is that if you want further reductions, we will have to go through that exercise and look at what services are being cut.”

But committee members expressed concerns regarding councillors’ ability to access information, specifically when it comes to staffing and public concerns which have been expressed to them regarding increases in those levels.

“How do I ensure that citizens – they might not agree with the thinking behind it but agree that we have given them the information and we’re being transparent. How do we uncomplicate some of this stuff,” asked Coun. Stu Young.

Committee chair Chris Hellman also stressed the need for information, using the example of pound services which have been internalized after being contracted out which resulted in municipal staffing levels rising but not necessarily with a corresponding rise in expenses.

“Understanding why there was a shift would help us communicate for sure,” stated Hellman.

The committee had heard earlier in the meeting the city had found it could operate pound services in a more cost-effective manner than contracting it out. While that might reflect in higher staffing levels, it contributes to lowering operating expenses.

But the committee also heard administration is at the limit in finding such efficiencies and if more reductions are required it will impact services provided to the public.

The city is currently looking at a continued 5.6 per cent annual property tax increase through to 2027 and possibly more if alternatives to funding big ticket spending commitments aren’t found.