Medicine Hat Minute: Issue 207

Medicine Hat Minute - Your weekly one-minute summary of Medicine Hat politics

📅 This Week In Medicine Hat: 📅

• On Monday, at 4:30 pm, there will be a City Council meeting, beginning with a closed session. Away from the public eye, Council will discuss a Culture Code Update, the Indemnification Policy, and Council Strategy and Policy Development. When the meeting opens up to the public, around 6:30 pm, Council will consider two motions related to the administration of the 2025 municipal election. The first proposes formal appointments under the Local Authorities Election Act, naming City Clerk Tarolyn Aaserud as Returning Officer and Chief Electoral Officer Andres Cardona Arias as Substitute Returning Officer. The second motion seeks Council approval for accessibility-focused measures. These include holding an advance vote, authorizing institutional voting stations, offering assistance to voters with disabilities, and enabling special ballot applications via email, in writing, or in person. While advance voting is required by law, the additional measures are optional and aim to expand voting access. If adopted, recruitment and outreach efforts will begin this summer to ensure a well-staffed, inclusive voting process ahead of the October 20th election.
  
  
• Council will receive the 2024 annual report for Medicine Hat’s Destination Marketing Organization (DMO), which outlines $2,046,743 in total expenses for the year. The largest cost category was marketing and media, which accounted for $894,726. This included spending on paid digital media, video production, and partnerships to promote tourism. Administration costs came next at $508,216, reflecting staff wages, office expenses, and governance-related spending. Product development initiatives, such as signage, visitor experience improvements, and community programming, cost $258,464. Industry development activities, including training, tourism ambassador programs, and business engagement, totalled $197,427. Event support accounted for $159,157, much of it directed to sponsorships and local partnerships. The remaining $28,753 was used for other operational needs. Despite these expenses, the DMO closed the year with a surplus of $226,757 on $2,273,500 in revenue. The organization credits efficient budget management and a deliberate pause in some capital projects for the surplus. These funds will be rolled into 2025 operations, with a focus on future product development and strategic planning.
  
  
• Also on Council’s agenda is a Special Transit Review, which outlines a wide-ranging series of operational, policy, and service updates aimed at improving accessibility for clients with disabilities. While the City has not yet approved a revised policy, many changes are already underway. The review was funded through a $100,000 Major Operating Expense approved in 2020. The remaining funds will also support initial implementation. In addition, a $50,000 federal grant has been secured through the Rural Transit Solutions Fund, contingent on policy approval. Recommendations may impact future operating costs. Some changes could reduce pressure by increasing efficiency or reducing demand, but many proposals, such as extended service hours, expanded eligibility assessments, and taxi-based overflow support, are expected to raise costs. Recommendations are being implemented across three phases spanning 2025 to 2027, with immediate changes including a service rebrand, expanded booking tools, and a revised appeals process. Mid-term steps include launching a functional eligibility system and extending service hours to align with regular transit. Several performance targets are also proposed to guide future service quality, including on-time performance, phone wait times, and demand capacity thresholds.
  
  
• City administrators in Medicine Hat are warning Council that two of the City’s major reserve funds could be depleted within the next decade. Finance Director Lola Barta told Council that continued withdrawals from the capital and operating reserves, combined with shrinking energy profits, will create long-term challenges. The City is drawing about $40 million per year for capital projects and $15 million to offset the operating deficit. In contrast, dividends from the City’s energy business are forecast to average just $13 million annually. In 2024, only $12 million in profit was added to the funds, which are expected to shrink by $55 million this year. Councillors acknowledged that previous confidence in ongoing profits may no longer be realistic, especially with energy prices softening. While reserves still total nearly $700 million, officials say that without new revenue sources or major changes, they may only last a few more years before serious tradeoffs are required.
  
  
• Medicine Hat’s top civil servant has issued a rare public criticism of the Alberta government, warning that democracy is being undermined by recent legislative changes. Chief Administrative Officer Ann Mitchell says Bill 50, which scrapped municipal codes of conduct, came too fast and without proper consultation. She voiced concern about rising incivility and a lack of protection for public servants, noting it’s making the sector less attractive. Mitchell’s comments follow a LinkedIn post where she urged administrators to defend local democracy and cautioned about self-serving politicians. Councillors Shila Sharps and Andy McGrogan disagreed, supporting the bill as a governance improvement. Mitchell stressed that administrators must be both apolitical and politically aware, and hinted at forming a national task force to strengthen public sector resilience. She said her goal is to leave the institution stronger and protect future public servants from burnout and dysfunction.
  
  
• The Medicine Hat Public School Division has released a balanced budget of over $95 million for the 2025-26 school year, marking a shift after three years of planned deficits. These deficits were used to navigate reduced funding caused by declining enrolment, which also led to the near depletion of reserve funds. While the new budget avoids a deficit, it does not replenish those reserves, as the division remains focused on maintaining classroom support and managing class sizes. A key challenge is that the provincial base per-student grant remains unchanged, even as costs continue to rise. Despite a projected drop of over 150 students, no staff layoffs are expected; instead, a reduction of 3.6 full-time positions will occur through attrition. Staffing continues to account for 75% of spending, and additional funds have been earmarked for anticipated increases in teacher and support staff wages. Transportation costs make up a smaller portion of the budget and have declined slightly due to fewer contracted buses. Rising benefits costs, however, are expected to exceed $53,000.

🚨 This Week’s Action Item: 🚨

Who is your favourite Medicine Hat City Councillor - and why?

Is it because of their voting record, how they engage with the community, or something else?

Take a moment to reply and share your thoughts with us.

Your feedback helps us understand which Councillors are truly representing the interests and values of Hatters.

🪙 This Week’s Sponsor: 🪙

This week's sponsor is you! We don't have big corporate backers, so if you like what you're reading, please consider making a donation or signing up as a monthly member.

Having said that, if you are a local business and are interested in being a sponsor, send us an email and we'll talk!