OLDS — A big drop in franchise fee revenue is underlining the need for Town of Olds officials to think more carefully about how they use that money.
During a recent council meeting, corporate services director Sheena Linderman said what the municipality will receive from the FortisAlberta franchise fee is anticipated to be about $390,000 less than budgeted.
Franchise fees are revenue obtained from utility providers for the right to sell their products within the municipality.
Back in 2023, council adopted a report by Transitional Solutions Inc. which conducted a third-party review of how the town is organized.
“In the org review summary it does talk about the recommendation to move how we budget franchise fees and the extent of the franchise fees that partially go toward heritage, arts and culture. And the org review recommends not doing that model,” said Brent Williams, the municipality's chief administrative officer said.
He predicted that by the end of the year, “significant progress” will be made on that front.
Williams’ statement was in response to a question from Coun. Darren Wilson.
“Do we have ongoing discussions with Fortis? Is there an opportunity there to renegotiate,” Wilson asked.
“I’m trying to understand I guess the costs of operating that. Is this just more downloading of a different nature? Would we have the opportunity to renegotiate some of those costs, or they are what they are?”
“My answer is they are what they are,” Williams said.
He said the Town of Olds has “regular contact” with FortisAlberta through its municipal representative and through that dialogue, town officials learn what the franchise fees are composed of.
However, in the end, “they essentially pass their costs, which are governed by the AUC, Alberta Utilities Commission on to us and we pay that,” Williams said.
