Medicine Hat, AB – The Southeast Alberta Chamber of Commerce is encouraged by Medicine Hat City Council's decision to direct administration to provide Council with recommendations for a fee philosophy. This will allow a review, comparison, and development of a long-term fee philosophy, aligning with recommendations contained in the Chamber's policy on Development and Infrastructure Division Fees and Charges, which called for a re-evaluation of fee increases, municipal benchmarking, greater stakeholder consultation, and a more gradual implementation approach.

Council's motion maintains the existing license fees for 2026 while directing Administration to bring forward amendments for 2027 that include eliminating Tier 4 classifications, reducing fees across all tiers, maintaining non-resident and administrative fees, reviewing multi-year license options, and establishing a formal fee philosophy.

While recognizing changes will not be immediate, the Chamber has consistently expressed concerns regarding the magnitude of business license fee increases introduced in 2025, particularly where some businesses experienced increases significantly above inflation and well beyond the historical range of annual adjustments. In its policy and correspondence to Council, the Chamber recommended that fee structures be based on current baselines and implemented through measured, incremental increases that reflect the actual cost of service delivery, while continuing to support business growth and investment.

"This decision demonstrates that Council has heard the concerns of the business community and recognizes the importance of maintaining a competitive environment for entrepreneurs and investors," said Aaron Fleming, President of the Southeast Alberta Chamber of Commerce. "We appreciate Council's willingness to undertake further review, and consider how business license fees compare to those in other municipalities and the cost of delivery, as well as the goals of the municipality before moving forward."

The Chamber's policy recommendations called for:

1.    Re-evaluating fee increases and consulting industry and organizations.

2.    Ensuring increases are phased in over time and evaluating service delivery costs.

3.    Conduct additional research, using municipal comparisons to assess competitiveness.

4.    Providing greater transparency regarding fee-for-service costs.

5.    Preventing public engagement and appeal costs from disproportionately impacting development and business fees.

The Chamber notes that Council's direction to develop a fee philosophy is a positive step toward establishing consistency, predictability, and transparency in future fee decisions. A clearly defined philosophy can help balance revenue requirements with broader economic development priorities, including business attraction, retention, expansion, and competitiveness.

"Businesses understand the need for municipalities to recover costs and maintain services," added Fleming. "At the same time, fee structures must support the City's strategic objective of fostering a dynamic, thriving and growing community economy. Competitive business costs are an important factor in attracting investment, encouraging entrepreneurship, and supporting existing businesses as they continue to navigate economic uncertainty."

The Chamber also welcomes the proposed reductions to business license rates beginning in 2027 and the continued review of multi-year licensing options, both of which have the potential to improve affordability and administrative efficiency for local businesses.

The Southeast Alberta Chamber of Commerce looks forward to participating in future consultations and working collaboratively with Administration and Council to ensure the final fee structure reflects community realities, municipal competitiveness, and long-term economic growth objectives.

Please direct all media inquiries to:

Aaron Fleming, President
Southeast Alberta Chamber of Commerce
Phone: (403) 527-5214 ext. 222
www.southeastalbertachamber.ca

The Chamber of Commerce is a member-driven, volunteer-led organization, proudly representing the interests of businesses in our region, and working diligently to stimulate a strengthened and vibrant economy through our connections, support and influence. For over 125 years, the Chamber has stood for promoting business, monitoring government and championing managed growth in the local economy. The Chamber represents close to 900 businesses in our region and is aligned with the Alberta Chambers of Commerce (ACC), which represents over 24,000 businesses, the Canadian Chambers of Commerce (CCC), which represents over 200,000 businesses and the International Chamber of Commerce (ICC), representing over 45 million companies in more than 170 countries. With the largest and most influential business organizations locally, provincially, federally and internationally, the Chamber network is the most unified, valued and influential business network in Canada and works together to shape policy and programs that will make a difference to businesses in our region.