"Are franchise fees a tax? No. Franchise fees are simply the cost utility and cable providers incur for being allowed to place their facilities in the public's right-of-way. Franchise fees are considered a cost of doing business. Franchise fees are an important component of a diversified revenue stream for municipalities."
Let's debate the definition of a tax? A cost of doing business which has several councillors stated during the debate on this issue gets passed on to the taxpayers. Tax?
On the next page it goes on to say:
Municipal Fact:
"Since 2008 the Municipality has increased the Franchise Fees received from ATCO and Fortis from $271,037 to $569,749 to generate revenues and reduce the impact on mill rate increases and as well to establish reserve funds".
To generate revenues and reduce the impact on mill rate increases. So it is a tax? What would taxes have gone up this year and next without the Franchise Fee? approximately an additional 3% in 2012 and 5% in 2013.
2008 shows $250,000 for Franchise Fees I can't see the $271,037 anywhere on the table?
Municipal Fact: (Heading shorten by blogger for room purposes)
Summary of Revenues
|
Tax Levy
|
Utility Levies
|
Franchise Fees
|
Total Revenue
|
Annual $ Increase
|
Annual % increase
| ||||
Budget - 2014
|
$6,951,421
|
$2,508,231
|
$906,694
|
$10,366,346
|
$181,409
|
1.78%
| ||||
Budget - 2013
|
$6,855,376
|
$2,422,867
|
$906,694
|
$10.184.937
|
$442,584
|
4.34%
| ||||
2012
|
$6,820,152
|
$2,352,452
|
$569,749
|
$ 9,742,353
|
$516,675
|
5.30%
| ||||
2011
|
$6,555,990
|
$2,295,400
|
$374,288
|
$ 9,225,678
|
$335,197
|
3.77%
| ||||
2010
|
$6,432,821
|
$2,162,109
|
$295,551
|
$ 8,890,481
|
$260,138
|
3.01%
| ||||
2009
|
$6,360,015
|
$1,974,031
|
$296,297
|
$ 8,630,343
|
$167,667
|
1.98%
| ||||
2008
|
$6,277,689
|
$1,934,987
|
$250,000
|
$ 8,462,676
|
$878,296
|
11.58%
| ||||
