Medicine Hat Minute: Issue 210

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

📅 This Week In Medicine Hat: 📅

• Today, at 3:45 pm, there will be a meeting of the Public Services Committee. The agenda includes the distribution of $813,920 in Family and Community Support Services (FCSS) grants for 2026-2027, following recommendations from the Community Vibrancy Advisory Board. Seventeen organizations applied for funding totalling $1.98 million, but only six were selected, meaning about 41% of the requested funds will be allocated. The largest grant, $382,500, goes to Medicine Hat Family Service to provide accessible mental health services. Other major recipients include the Medicine Hat Public School Division ($150,700), Community Food Connections ($96,720), and the Medicine Hat Public Library ($84,000). Smaller grants were awarded to the Women’s Shelter Society and LEARN Community Adult Learning Council. The FCSS funding is a provincial-municipal partnership requiring the City to contribute 20% of the total.
  
  
• Speaking of grants, the Committee is considering establishing a Non-Profit Operating Grant Program in response to rising demand from local organizations. Requests for funding increased 48% between 2019 and 2024 - far outpacing the 33% growth in available funds. The City currently receives both formal and ad hoc funding requests, often exceeding the capacity of existing programs like FCSS and Community Vibrancy Grants. Administration is presenting four options: (1) maintain the status quo with no new program; (2) create a program without a set budget; (3) create a program funded annually through the Medicine Hat Endowment Fund; and (4) create a structured program with an annual cap funded through the tax base starting in 2027-2028, with interim funding from reserves. Administration recommends Option 4, which would provide transparency, predictability, and alignment with other Alberta municipalities that have broader, formalized grant programs. The recommended option includes annual intake, ranking, and reporting mechanisms to evaluate impact and ensure accountability. If approved, Administration will return with a finalized program design and proposed budget for Council’s approval.
  
  
• On Tuesday, at 4:00 pm, there will be a City Council Public Hearing. The focus of the hearing is the proposed restructuring of the City’s energy division into a municipally controlled corporation (MCC). This move is intended to improve business performance by separating operations from political decision-making, allowing a skills-based board to oversee the utility and respond more quickly to challenges in Alberta’s complex energy market. The model is similar to Calgary’s Enmax and Edmonton’s EPCOR, and is expected to preserve public ownership while modernizing management. Supporters argue this approach could maintain or grow the City’s utility dividends, which have contributed $500 million over the past decade, though those revenues are now considered unsustainable under the current structure. Initial setup costs are estimated at $4 million, with a small rate increase of about 1.75% anticipated. The Medicine Hat United Ratepayers Association (MHURA) has expressed strong concerns about the shift, and is concerned that it may reduce public oversight, prioritize profit over affordability, and distance decision-making from accountability. They are calling for enforceable governance safeguards, transparent rate-setting, and a dividend policy that ensures any profits go toward lowering taxes and utility rates.
  
  
• Councillors had an intense debate about whether Mayor Linnsie Clark should be reimbursed $76,000 in legal fees related to a 2023 judicial review of sanctions imposed on her by Council. Clark argued that the court found Council’s actions unreasonable and that the sanctions - including a pay cut and restricted access to City Hall - forced her legal challenge. Some Councillors, however, said that while the sanctions were deemed excessive, the Code of Conduct breach still stood, and covering Clark’s costs could set a troubling precedent. Councillor Knodel and others raised concerns about conflict of interest, suggesting Clark should not have introduced or voted on the motion. The discussion was postponed by a 5-4 vote until late July to allow more time to review a detailed cost breakdown.
  
  
• City Council has also postponed a decision on building a new food waste composting facility until July. Councillor Shila Sharps recommended the delay, citing upcoming discussions with regional partners through the Inter-Municipal Committee, which includes Cypress County and Redcliff. The proposed $9.5 million facility was previously left out of the most recent budget as Councillors expressed interest in pursuing a regional approach. However, City staff returned the issue to the Committee last week, warning that delays could lead to rising costs. The facility would make permanent a pilot program that allowed food scraps in yard waste bins and is projected to save $8 million compared to expanding the landfill. Council hopes to revisit the decision following regional talks.

🚨 This Week’s Action Item: 🚨

Have you ever struggled with red tape in Medicine Hat?

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