Bonnyville is not alone in this trend. Across Canada, municipalities are grappling with the rising costs of infrastructure and services, leading to similar decisions. The increase in franchise fees is a result of the rising costs of infrastructure and services, which are being driven by several factors. These factors include inflation, supply chain disruptions, and increased demand for energy and resources.
This increase is expected to generate an additional $1.5 million in revenue for Bonnyville. The town council has also approved a new five-year plan for the infrastructure development in Bonnyville. This plan focuses on improving the quality of life for residents and includes projects like the construction of a new community centre, a new library, and the expansion of the existing water and sewer infrastructure.
A motion to approve the increase in the APEX Utilities franchise fee was passed, marking the first such increase since the agreement was signed in 2015. A one percent increase is estimated to generate $41,000 in additional revenue for the town. The council also discussed an increase in the ATCO franchise fee for electricity during the same meeting. The current fee, set at 6.8 percent since 2003, will now rise slightly to generate additional revenue for the town, largely to cover the increased costs associated with expanding street light infrastructure. Although more energy-efficient lights have been installed, the town has added more streetlights overall, which has raised operating costs.
Bonnyville’s administration recommended the increases to both franchise fees as a necessary measure to ensure stable revenue streams and to maintain essential services in the face of rising municipal costs.
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