City budget passes, tax increases coming

Coun. Andy McGrogan recites issues with city administrators while Mayor Linnsie Clark listens intently during Monday’s final budget discussions.

By Alex McCuaig

Council passed its two-year financial plan Monday night, but it could end up being a mirage budget as elected officials deferred several big-ticket items going into an election year.

An attempt to put a two-year funding agreement into the city’s 2025-26 budget that would see the municipality support HALO with a half-million dollar over two-years came close but was ultimately defeated.

Multiple other projects with multi-million-dollar funding requests have already been deferred with city officials not prepared to say yea or nay. The biggest request which has seemingly been part of city hall’s analysis paralysis is support for a revamp of the Medicine Hat Exhibition & Stampede’s grandstand.

And decisions for funding requests from the Root Cellar along with the Women’s Shelter have also been pushed off until a structured application process can be formulated.

It’s not just community and social agencies which have been left in limbo or with questions regarding city hall’s financial planning processes.

Speaking to questions he had regarding the budget, Coun. Andy McGrogan laid bare his own frustrations in seeking reductions in tax rates through a notice of motion.  He focused his dissatisfaction on a six-page written response he received from city administration regarding his proposed motion.

“I questioned if agreeing to my motion it would necessitate dimming the lights at city hall, halting all new growth, placing stress on the city’s debt ratio and inevitably causing stagnation to our city,” McGrogan stated to council.

McGrogan’s motion involved sending the budget back to city administration to find savings to reduce the budget increase from 5.6 per cent to less than four. He specifically wanted an answer to his question as to whether $800,000 in city spending equates to a one per cent tax hike.

“The figures presented by administration in response were complex in my opinion and inadequate in answering my very simple, straightforward question,” he said.

Dennis Egert, director of corporate services, managed to answer that question in seconds verbally where the lengthy written response failed.

That number is now $950,000 in city spending equating to one per cent of taxpayer supported costs, Egert told council.

McGrogan took issue with one sentiment shared with him by city administrators. Specifically due to his history which dates back 45 years in city service with the local police, reaching the rank of chief prior to retirement and running for council.

“We’re not here to passively agree with administration. They are tasked with enacting the will of council, not the other way around,” said McGrogan. “Recently, I received an email from a senior administrator accusing me of not being qualified to assert that taxpayers are distressed. I disagree with this assessment.”

Coun. Allison Knodel said it’s too late in the year to make budget adjustments with a Jan. 1 provincially mandated deadline for a budget in providing her reasoning against the motion.

“Whether we got what we need in our 30-plus hours of meetings prior to today’s date, I feel like asking for it now is a bit too late,” said Knodel.

Mayor Linnsie Clark, whose own questioning of city administrators’ actions lead to council suspending her, sympathized with McGrogan’s position.

Those sanctions required Clark to seek a judicial decision to reverse with a Court of King’s Bench justice finding they were over the top in scope in relation to the perceived offence against questioning actions by city manager Ann Mitchell.

While an apology was offered by Clark to Mitchell in the wake of that court action, the city manager demanded the mayor go further and apologize to the citizens of the Hat.

Ultimately, Clark voted in support of McGrogan’s motion while stressing she’s still having questions regarding the city administration’s accounting of new full-time employee positions currently sitting at record highs.

Council passed the budget by a 6 to 3 margin with Coun. Shila Sharps joining McGrogan in voting nay to approving the nearly $90 million budget over two year with comes with a 5.6 per cent property tax increase.