Dear Editor,
My natural gas and electric costs have increased in excess of 25 per cent compared to two or three years ago.
The actual consumption of natural gas and electricity is only 34 per cent of my total bill — 18 per cent for electricity and 16 per cent for natural gas.
Of that total bill, Okotoks’ local access fees and municipal franchise fees represent five per cent and three per cent, respectively.
GST and carbon tax take five per cent and eight per cent, respectively.
Administration, distribution, transmission, rate riders and delivery charges take the remaining 45 per cent.
My only control over all these preceding costs is to turn off the lights and turn down the thermostat (freeze in the dark).
I have calculated the impact of the contemplated 75 per cent increase from 20 to 35 percent for the franchise fee. Based on the most recent 12 months billing, my costs would increase by $76 per year provided the utility company does not increase its fixed delivery rate, variable delivery rate or rate riders. That would classify me as being pretty average by the Town’s definition.
Taxes are taxes and if they must go up, so be it. We may not like it – most don’t like taxes but if we really don’t like how the Town is handling its finances, we all have our opportunity at election time to show politicians how much we appreciate their efforts.
But to hide taxes in utility bills is a sneaky, underhanded means to avoid the real issue — tax increase. Furthermore, this method of taxation plays on variables beyond the control of the consumer or the Town of Okotoks; other than the Town will be hopeful of utility cost increases so its share increases as well.
I was not if favour when this municipal fee was introduced and I am definitely not in favour of seeing it increased 75 per cent. Frankly, I have no interest in what other municipalities have done and could make references to Okotoks following them off cliffs.
The Town of Okotoks has a fiduciary duty to its ratepayers. Fiduciary duties include duty of care, loyalty, good faith, confidence and disclosure. Passing tax collection to a third party collector (utility company) fails to pass this fiduciary duty on multiple levels.
Do not proceed with this fee increase. Tax if you must, but do it through appropriate channels. Quit the deception.
Rick Neufeldt
Okotoks
