Budget 2025-2026

Share Budget 2025-2026 on Facebook Share Budget 2025-2026 on Twitter Share Budget 2025-2026 on Linkedin Email Budget 2025-2026 link

Information about this project has been moved to https://www.medicinehat.ca/en/government-and-city-hall/current-and-previous-budgets.aspx(External link)

* The budget documents are now on our main website at www.medicinehat.ca/budget(External link) now that the budget is approved.

The 2025-2026 City budget was approved on December 16, 2024. 

The budget considers both Council's strategic priorities and the financial realities that both our organization and community are facing. We consider:

  • Our current financial state
  • Current priorities
  • Future priorities
  • External pressures

City Council committed to six dedicated Committee of the Whole meetings on the topic of budget alone in 2024 to gain full understanding of our financial outlook, both now and into the future. Our budget is a balancing act – reflecting our commitment to ensuring the sustained prosperity and well-being of our community while ensuring fiscal capacity and flexibility to address the challenges and opportunities that lie ahead.


Budget Theme


Therefore, this budget process is guided by the overarching theme of balancing the needs of today with the requirements of tomorrow. What do we need to do today to prepare for tomorrow to maintain our advantages that we enjoy today?


Budget Background and Planning Process

Budgeting in a municipality explores the unique aspects shaping the City’s budget such as the need to operate indefinitely and, by law, municipalities cannot run a deficit.

How the City’s budget is structured breaks down the City’s four distinct business units (municipal, land development and real estate, rate-based utilities, and energy production), and operating and capital budget structures.

Underpinning the budget planning process for 2025-26 are five budget commitments.

On April 23, 2024, City Council began the budget process with a budget planning session. This meeting focused on aligning understanding of the key budget assumptions that will guide the rest of the budget process going forward. Watch the video here(External link) | Read the presentation


Growth Capital Budget Deliberations


  1. On June 25, 2024, City Council met and discussed new growth opportunities. New growth opportunities are options presented to Council that improve quality of life if we were to invest in new services, programs, operational initiatives, and capital projects in the upcoming 2025-26 budget cycle. Watch the video here(External link) | Read the presentation
  2. On July 9, 2024, City Council met again to gain clarity about new growth opportunities. Watch the video here(External link) | Read the presentation


Operating and Sustaining Capital Deliberations


  1. On October 22, 2024, City Council met and discussed Rate-Based Utilities including water, sewer, solid waste (garbage/recycling), and electric and natural gas distribution. Watch the video here(External link) | Read the presentation
  2. On October 30, 2024, City Council met and discussed the Energy Production budgets. Energy production covers both electrical generation (power plant, etc.) and gas production (gas wells and abandonment/reclamation obligations). Watch the meeting(External link) | Read the presentation
  3. On November 5, 2024, City Council met and discuss the proposed Municipal Budget. Watch the meeting(External link) | Read the presentation
  4. On November 13, 2024, City Council met and discuss the proposed Land Budget and Economic Development Budget, and will finish with a conclusion of the consolidated budgets together. Attend in person (Council Chambers at 3:45 p.m.) or by live stream. Watch the meeting(External link) | Read the presentation


Rate Setting and Final Stages


  1. On November 18, 2024, Council heard the first reading of the Rate Bylaw. The Rate Bylaw sets utility rates, which are part of setting the budget projections. Watch the meeting(External link) | Read the presentation(External link)
  2. On December 2, 2024, Council tabled a motion to deliberate Budget Approval. Debate extended to the end of the meeting and the item was subsequently deferred to the December 16, 2024 meeting.
  3. On December 16, 2024, Council will continue deliberating the 2025-2026 Budget. They will also host a Public Hearing of the Rate Bylaw as well as second and third reading of the Rate Bylaw.


* The budget documents are now on our main website at www.medicinehat.ca/budget(External link) now that the budget is approved.

The 2025-2026 City budget was approved on December 16, 2024. 

The budget considers both Council's strategic priorities and the financial realities that both our organization and community are facing. We consider:

  • Our current financial state
  • Current priorities
  • Future priorities
  • External pressures

City Council committed to six dedicated Committee of the Whole meetings on the topic of budget alone in 2024 to gain full understanding of our financial outlook, both now and into the future. Our budget is a balancing act – reflecting our commitment to ensuring the sustained prosperity and well-being of our community while ensuring fiscal capacity and flexibility to address the challenges and opportunities that lie ahead.


Budget Theme


Therefore, this budget process is guided by the overarching theme of balancing the needs of today with the requirements of tomorrow. What do we need to do today to prepare for tomorrow to maintain our advantages that we enjoy today?


Budget Background and Planning Process

Budgeting in a municipality explores the unique aspects shaping the City’s budget such as the need to operate indefinitely and, by law, municipalities cannot run a deficit.

How the City’s budget is structured breaks down the City’s four distinct business units (municipal, land development and real estate, rate-based utilities, and energy production), and operating and capital budget structures.

Underpinning the budget planning process for 2025-26 are five budget commitments.

On April 23, 2024, City Council began the budget process with a budget planning session. This meeting focused on aligning understanding of the key budget assumptions that will guide the rest of the budget process going forward. Watch the video here(External link) | Read the presentation


Growth Capital Budget Deliberations


  1. On June 25, 2024, City Council met and discussed new growth opportunities. New growth opportunities are options presented to Council that improve quality of life if we were to invest in new services, programs, operational initiatives, and capital projects in the upcoming 2025-26 budget cycle. Watch the video here(External link) | Read the presentation
  2. On July 9, 2024, City Council met again to gain clarity about new growth opportunities. Watch the video here(External link) | Read the presentation


Operating and Sustaining Capital Deliberations


  1. On October 22, 2024, City Council met and discussed Rate-Based Utilities including water, sewer, solid waste (garbage/recycling), and electric and natural gas distribution. Watch the video here(External link) | Read the presentation
  2. On October 30, 2024, City Council met and discussed the Energy Production budgets. Energy production covers both electrical generation (power plant, etc.) and gas production (gas wells and abandonment/reclamation obligations). Watch the meeting(External link) | Read the presentation
  3. On November 5, 2024, City Council met and discuss the proposed Municipal Budget. Watch the meeting(External link) | Read the presentation
  4. On November 13, 2024, City Council met and discuss the proposed Land Budget and Economic Development Budget, and will finish with a conclusion of the consolidated budgets together. Attend in person (Council Chambers at 3:45 p.m.) or by live stream. Watch the meeting(External link) | Read the presentation


Rate Setting and Final Stages


  1. On November 18, 2024, Council heard the first reading of the Rate Bylaw. The Rate Bylaw sets utility rates, which are part of setting the budget projections. Watch the meeting(External link) | Read the presentation(External link)
  2. On December 2, 2024, Council tabled a motion to deliberate Budget Approval. Debate extended to the end of the meeting and the item was subsequently deferred to the December 16, 2024 meeting.
  3. On December 16, 2024, Council will continue deliberating the 2025-2026 Budget. They will also host a Public Hearing of the Rate Bylaw as well as second and third reading of the Rate Bylaw.


Information about this project has been moved to https://www.medicinehat.ca/en/government-and-city-hall/current-and-previous-budgets.aspx(External link)

  • Budgeting in a municipality

    Share Budgeting in a municipality on Facebook Share Budgeting in a municipality on Twitter Share Budgeting in a municipality on Linkedin Email Budgeting in a municipality link
    29 Apr 2024
    supporting image

    When budgeting in a municipality it is important to keep in mind that municipalities are unique.

    Municipalities must budget to operate indefinitely.

    The Municipality provides the basic foundational services that make it possible for people to live and work in Medicine Hat. As long as the City exists, so does the municipal corporation. Thus, the City must budget in a way to ensure it is around 100 years. Typically that, when budgeting, we must be conservative in our approach.

    By law Municipalities cannot run a deficit.

    We are allowed to dip into savings if we have savings but, if the Municipality is to survive indefinitely it cannot rely on savings forever. Thus we must budget in a way to ensure we can live within our means.

    Typically a City only has two main options when it comes to balancing its budget, savings or taxes.

    Thus the City is limited in the services it can provide by the amount of property taxes it is able to collect. The taxpayer’s tolerance for paying property taxes puts an upper limit on how much the City is able to do.

    What makes us different than provinces and the federal government is that, by law, we are only allowed to issue debt to pay for capital projects.

    Therefore, we are not allowed to cover cash deficits with borrowing. This is a basic mechanism to ensure that City’s do not over leverage themselves and remain financially sustainable.

    Finally the City has a clear mandate outlined in Municipal Government Act which identifies the core services it must provide.

    At minimum, the Municipality must provide the services as outlined within the act, which include things like providing safety, fostering good government, protecting the environment, and providing services and facilities and other things (such as roads and utilities).

    You need to be signed in to add your comment.

    number of comments, image icon 0 comments

  • Watch: Council Committee of the Whole - Key Budget Assumptions

    Share Watch: Council Committee of the Whole - Key Budget Assumptions on Facebook Share Watch: Council Committee of the Whole - Key Budget Assumptions on Twitter Share Watch: Council Committee of the Whole - Key Budget Assumptions on Linkedin Email Watch: Council Committee of the Whole - Key Budget Assumptions link
    29 Apr 2024
    supporting image

    On Tuesday, April 23, 2024, City Council members gathered in a Committee of the Whole for the first of six planned engagements between City Council and the City's budget representatives before the 2025-2026 budget is approved.

    This meeting focused on aligning understanding of the key budget assumptions that will guide the rest of the budget process going forward.

    Watch the video here(External link) | Read the presentation

    (External link)


    You need to be signed in to add your comment.

    number of comments, image icon 0 comments