FINANCE AND GOVERNANCE


Julie Friesen had made a campaign promise to examine how the city’s then-independent municipal and energy divisions could be joined to find savings and improve oversight. In 2015, an outside management firm’s recommendation was an amalgamation under municipal administrator Merete Heggelund.


That has led to some cost reductions that have been folded into an overall budget review that was the biggest issue in 2016.


Council began to come to grips with the situation facing its own energy production companies. Gas prices had struggled since 2008, but in the province-wide downturn, electric export sales plunged in value as well.


With no major energy profits forecast until 2019 or later, administrators launched the Financially Fit for the Future Review.


Trying to fill the $23-million gap, budget


authors suggested a combination of increased fees, wage freezes, and some service reductions matched with tax increases. Savings and new revenue should balance the budget by 2026, though close to $77 million in reserves would be needed to avoid tax rate shock.


The 2017-18 city budget states that by the end of next year, the difference could be shrunk by one third, or about $6.8 million per year.


IMAGE


Medicine Hat has always marketed itself as providing services and amenities above a typical mid-sized prairie city. The Canalta Centre and expanded portions of the Family Leisure Centre opened this term.


A tourism initiative advertised 330 days of sunshine.


Another initiative, the South Saskatchewan River valley plan, including commercial


land opened up, possibly a new campground, and other amenities to bill the swath through town as a recreation hub and trouts attraction.


Clugston called the plan, adopted in 2015 “a document for the next term.” Only $500,000 would be spent over two years on a number of minor improvements, while mid- and long-term plans remain for future years.


SOCIAL DEVELOPMENT


Medicine Hat became known as the city that ended homelessness during the term, a standard defined as moving those in temporary shelters to more permanent placements over a certain period of time.


A follow-up phase was unveiled in early 2017 by a consortium of community groups with city support. The “Thrive” report asks that local social service agencies agree to align their activities and programs. Coun. Celina


Symmonds said the city has been able to concentrate on well-being while being fiscally responsible.


“This council as done a really good job. Financially Fit has made huge strides toward being financially stable and balancing the budget — something other levels of government haven’t been able to do, but we have,” she said.


“I think we’ve done great things, I really do and some of those things have been hard.”


CONSTRUCTION


The last four years have seen “the biggest capital construction program in the city’s history” according to Clugston.


Topping the list are an air terminal, two fire halls, athletic fieldhouse, major spectator hockey arena, and a new north end power plant.


Clugston has also said that new reserve policies — such as spending new energy profits on capital spending only -- may make “wish-list” items harder to build, but the city seems to be in good shape, for the time being.


“Trying to time these things


is like trying to time the stock market,” he told the News, though noting that recent construction has been a benefit to the economy and more cost effective due to economic conditions.


“By luck, we were investing in the downturn to build all of these projects.”


Beyond new buildings, the city has pushed ahead with funding for flood mitigation as well as increased the amount of general rehabilitation work in successive city budgets.


That’s part of a stepped plan that spans 30 years to deal


with aging for roads, sewers and water lines.


Coun. Robert Dumanowski, chair of the infrastructure committee, said the berm program spanned council terms and long-term infrastructure plan is forward thinking.


“Council has showed resolve,” he said. “We’ve been aggressive in dealing with underground infrastructure, and that critical infrastructure will fail if we don’t deal with it.”


“It’s as basic as you get,” said Dumanowski. “It’s protecting citizens, it’s providing water.”


ENERGY DIVISION


Modernizing the business plan for the oil, gas, and power production units has been a major shift in the new energy landscape.


Coun. Bill Cocks, who campaigned in 2013 on a platform of riding out low energy prices, has shifted to the point where the utility committee chair has stumped for a new drilling program and oil exploration. A major sell-off of unprofitable wells — about one-fifth the city’s inventory — was announced in early 2017.


Dividends from most general utility divisions, such as sewer and water delivery, are back


stopping some of the revenue gap left by gas, and a general cost-reduction program and capital budgets have been cut.


As for the health of city reserves, councillors have raised alarm bells, including Coun. Les Pearson who says often that long-term liabilities in the petroleum division will be paid for with cash in the bank today as well as future profits.


“We’re in the oil business because we have to be,” he said.


Coun. Jamie McIntosh has also said the reserve balances are being used up and an exorbitant rate.


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