SUNDRE — Following a brief recap regarding the annual revision of the Fortis Alberta franchise, town council has agreed to maintain the rate.
Chris Albert, the town's director of corporate services, said during the regular Oct. 13 teleconference meeting the percentage was set at 10 per cent for 2020.
Upon reviewing information pertinent to the rate, administration recommended keeping it the same, Albert said, adding the utility company is asking the regulator for an increase in fees.
“So, us maintaining a 10 per cent rate would have an effect of an additional approximately 43 cents per month, on the average utility bill, according to the calculations that Fortis provides,” he said.
“That 10 per cent is still fairly common within our region,” he told council.
Municipalities have the option not to charge the fee, or can levy as much as 20 per cent.
Based on Fortis estimates, maintaining the fee at 10 per cent will represent an increase of revenue for the municipality of about $11,700, he said.
Coun. Charlene Preston moved administration’s recommendation to hold the line.
Coun. Cheri Funke sought clarification with regards to where the revenue is allocated.
“Currently, the franchise fee just goes into revenue for the budget,” answered Albert.
Funke, who fully supported the motion, said, “I think we need to re-think our approach on how to use it.”
Mayor Terry Leslie said the franchise fee has in the past been split between allocating a portion to infrastructure reserves and the rest going to support a reduction in taxation.
“That might be a topic for the upcoming workshop,” said Leslie.
Linda Nelson, chief administrative officer, confirmed that discussing how to use the fee could be included in the workshop, but added a motion on setting the fee had to be passed that evening.
“It’s for next year anyway…so, really we have time to decide where it goes,” said Funke.
Preston’s motion carried, with Coun. Paul Isaac opposed.
