Town of Olds residents can expect to pay nine per cent more for their natural gas, starting on Jan. 1, 2012.
Town council voted to increase the town's franchise fee rate from 27.5 per cent to 30 per cent at its regular meeting last week.
“The franchise fee has been in place for a number of years. It has been static at 27.5 per cent,” said Norm McInnis, town CAO.
“The 2.5 per cent increase that was approved is about $43,000 in new money in 2012.”
Since 2008, the town contributes $100,000 from the franchise fee revenue to the Community Learning Campus.
Town administration recently recommended that the remaining franchise fee revenue support the museum, the Evergreen Centre and various library programs.
“The gas franchise fee on an annual basis covers the cost that we incur for the museum, library and the senior centre,” explained McInnis.
“We just wanted to try and pin the revenue we get from that franchise to a specific use. That is what we called our culture budget.”
The current 2011 budget for the three programs and the Community Learning Campus contribution is $477,707 and the 2011 budget for gas franchise revenue is $455,803. Town administration believes that by increasing the gas franchise fee rate, the revenue collected from this fee will equate to the funds needed by the town to continue supporting the cultural programs.
“The rationale that we brought forward is that culture is an important thing in any community. It is part of the fabric of the community and it is something that is enjoyed by all citizens,” said McInnis.
“There is a higher social good to culture than just something that fits into a user/pay system.”
