Bowden town councillors got some good news during their latest meeting – they're getting more money from ATCO Gas and Pipelines Ltd.
Councillors received that news in a letter from Jamie Jaques, ATCO Gas and Pipelines Ltd. senior manager in the Red Deer district.
ATCO Gas pays the town a franchise fee that is collected from customers in the community, based on a percentage of the company's delivery tariff. In Bowden that percentage is 22 per cent. In 2013 that fee brought in $248,913.
“Our forecast delivery tariff revenue for 2015 is $271,150,” wrote Jaques. “Therefore, based on the current franchise fee percentage, the forecast 2015 franchise fee revenue would be $59,653.”
Development officer Jade Prefontaine indicated the increase in franchise fee revenue is good news for the town.
“Forty-seven and change to nearly 60,” she said.
According to a franchise agreement with ATCO Gas and Pipelines Ltd., the Town of Bowden can change the franchise fee percentage next year. But if it wants to do that, ATCO Gas must receive a letter to that effect by Nov. 15, Jaques indicated.
Discussions between the town and ATCO Gas came up about a year ago.
“They have oil and gas across the province. You kind of have to let them do it,” Coun. Wayne Milaney said. “If they compensate us in some way, that's all a plus. I think we agreed we'd just let them proceed, right?”
Mayor Robb Stuart said it's his understanding that franchise fee percentages charged by towns and cities range between 10 per cent and 35 per cent.
“I think last time we debated this we were in the lower 40 per cent of the towns and cities that charge a franchise fee,” he said. “We talked about raising it and then said, ‘well, no, because we had that tax hit apply. You don't want to double hit people.'”
Unless any councillors disagreed, Stuart suggested keeping the franchise fee at the current level.
No one disagreed.
However, Church said that question is something council should “keep in mind” when it's time to hammer out the town's next budget.
