Committee to Debate Who Controls the Purse Strings

MEDICINE HAT – Fresh off a series of split votes that saw council deny the majority of Mayor Linnsie Clark’s requests for legal fee reimbursement, a city committee is now set to debate a fundamental shift in the very policy that guided those decisions, potentially moving the ultimate authority from the City Manager to Council itself.

The City’s Administrative and Legislative Review Committee (ALR) meets Tuesday to consider amendments to Policy 0146, the indemnity policy that was at the centre of Monday’s contentious council meeting. The proposed change comes in the wake of revelations that council has previously overridden its own rules, approving $6,500 in legal fees for now-suspended City Manager Ann Mitchell despite a $12,000 legal opinion recommending against it.

The most significant proposed amendment would alter section 3.20 of the policy, stating that in situations where a council member seeks indemnification for legal fees that don’t automatically qualify, “City Council may direct the City Manager to indemnify or otherwise conditionally commit to pay certain legal fees incurred by a Council Member.”

This move is a direct response to the complex and politically charged situations council has recently faced, highlighted by the debate over Mayor Clark's more than $75,000 in legal fees. The council's handling of these requests underscores the current policy's ambiguities:

August 18 2025 Council meeting

• A $60,000 Request: Denied on a dramatic 3-3 tie vote for costs related to a successful judicial review that found sanctions against the mayor were "completely disproportionate." Councillors were split, with some blaming the mayor for not resolving the issue out of court and others acknowledging the city's process failed.

• A $10,500 Request: Denied for an independent legal opinion that confirmed the city did not follow its own procedure bylaw during a corporate reorganization—a finding later backed by a municipal inspection report. A majority of council took issue with the mayor obtaining counsel without consulting them first.

• A $5,800 Request: Unanimously approved for fees incurred defending against a defamation lawsuit threat from Mitchell.

This patchwork outcome, following the earlier approval of fees for the city manager, demonstrates the inconsistent and politically fraught application of the current discretionary powers.

A report from Solicitor Leigha Haney and Policy Coordinator Rondi Korven for Tuesday's meeting states the new proposal is designed to clarify the process, ensuring that “discretionary authority to make decisions regarding indemnification of Council Members... rests with City Council, rather than the City Manager.”

The report argues this change would “mitigate potential confidentiality, reputational, perception, individual psychological and other risks” associated with sensitive legal matters—risks that have been fully realized in the public arena over the past year.

A review of other municipal policies included in the meeting packet confirms that Medicine Hat’s situation is unique. The proposed structure, which involves an independent legal opinion and grants discretionary authority to cover non-standard cases, is a direct result of the complex and adversarial situations the city has faced, setting it apart from its peers.

The committee is also scheduled to receive verbal updates on the upcoming election, amendments to procedure bylaws, and council remuneration.

If approved by the committee, the recommended amendments would still require final adoption by City Council at a future date, setting a new precedent for how council handles the legal vulnerabilities of its own members in the wake of a deeply divisive period.