Sundre residents and business owners will notice an increase on their FortisAlberta power bills starting in January after council approved a five per cent franchise fee at last week's town council meeting.
The fee will result in the town receiving $65,646 annually, funds that will go into the town's general revenue accounts, said CAO Dean Pickering.
The fees will be collected and administrated by ForisAlberta, with the Town of Sundre receiving a once-a-year cheque, he said.
In a recommendation to council to start charging the fee, administration said other municipalities in the region already charge the fee, including Didsbury (which charges 12.5 per cent), Olds (8.59 per cent), Carstairs (five per cent), Innisfail (seven per cent), and Caroline (three per cent).
“The Town of Sundre does not collect taxes from provincial buildings (such as schools and seniors housing),” said Pickering. “By not charging a franchise fee you are turning down a provincial grant in lieu of taxes.
“This proposal comes forward to council every year as an opportunity to increase the Town of Sundre revenue without increasing taxes.”
Councillors Myron Thompson, Paul Isaac, Patricia Toone and Tony Jordan voted for the new fee. Mayor Annette Clews and Coun. Chris Vardas did not attend last week's council meeting.
Meanwhile, councillors have approved a new housing incentive policy, which will provide tax breaks in an effort to increase the amount of rental housing options and the amount of multi-family developments in town.
During last week's council meeting, councillors approved the new policy that provides for a reduction in the municipal tax levy on the improvement portion of the land for rental properties or multi-family units for two years or until such time as the unit is sold.
“The Town of Sundre wishes to diversify its housing type by providing incentives to developers so they will be encouraged to develop a range of housing options,” said CAO Pickering.
The new policy comes into effect on January 1, 2013.
Councillors also instructed administration to review and update the current land development incentive policy and report back to council at an upcoming council meeting.
The land development incentive allows for the municipal tax levy on vacant building lots to be cancelled or reduced for three years or until the land is sold.
Councillors have instructed administration to investigate possible business attraction incentives as part of the town's economic development strategy.
"This proposal comes forward to council every year as an opportunity to increase the Town of Sundre revenue without increasing taxes."Dean Pickering, CAO
