CREMONA - Village councillors have decided to keep the 2022 ATCO Gas and Fortis franchise fees unchanged from 2021.
The move came by way of motion at the recent regularly scheduled council meeting.
The village has franchise agreements with both companies which provide revenue to the village by charging the utilities for the placement of utility distribution services on village property.
The agreements set the fees as a percentage of total utility distribution for the year to village residents.
The ATCO fee is currently set at 25 per cent and the Fortis fee is set at 10 per cent, with revenues to the village based on consumption.
The ATCO fee revenue is estimated to be $35,941 in 2021 and projected to be $40,427 in 2022, while the Fortis fee revenue is estimated to be $31,607 in 2021 and projected to be $33,560 in 2022.
“Franchise fees are a somewhat unique revenue for the village, as it is revenue from all utility users, not just those that pay taxes,” Rudy Friesen, the village's chief administrative officer, said in a briefing note to council. “As with anything, costs are going up. As such, the revenue from our static franchise fees has slowly increased as well. These increases have been welcomed at a time when revenues from the provincial government have been declining.”
Council passed a motion keeping the 2022 fees unchanged from 2021.
Meanwhile, in his monthly report to council, Friesen said the public works department has been busy in recent days.
“A lot of work has been done this month updating aged electrical equipment in the pump house that draws water from our well system and sends it to our treatment plant,” he said. “After over a week of alternate power provisions the system was back to normal operation on Nov. 9.
“Public works has also been busy with seasonal work and getting prepared for the winter season.”
Two recent major capital projects, the Centre Street paving and the skatepark, have now been completed, he said.
Council accepted Friesen’s report as information.
