Pincher Creek town councillors put off a decision on utility franchise fees Sept. 14 after debating whether trimming the charges to ease pressure on residents’ bills was worth the hit to the town’s budget.

Council also heard Northback Holdings’ economic case for its proposed Grassy Mountain coal mine, voted down a funding request from the library, and set a date for its tax recovery auction.

Council debates utility costs

Council deferred decisions on both the natural gas and electricity franchise fees to Sept. 28.

It was asked to set the franchise fee percentages for 2027 and 2028 at once, as the town now budgets on a two-year cycle. Residents pay these fees on their gas and power bills.

The natural gas fee with Apex Utilities has sat at the maximum allowable 35 per cent since 2024, bringing in about $849,000 in 2025. The electricity fee with FortisAlberta, capped at 20 per cent, brought in about $673,000 in 2025.

Coun. Brian McGillivray proposed reducing the gas fee to 30 per cent, saying residents are facing difficult choices between groceries, rent and utility bills.

Coun. Sahra Nodge has historically supported the higher fee because it allows the town to collect revenue from utility customers who do not pay property taxes. However, she said the increasing dollar amounts have changed her view.

Chief administrative officer Konrad Dunbar told council a reduction from 35 to 30 per cent would reduce revenue by about $134,000. He said that could affect the town’s target of a three per cent tax increase and that keeping services at current levels might require other changes.

Mayor Wayne Oliver said framing the fees as percentages was misleading, since a household’s actual savings from a five-point cut would amount to only about a dollar or two per bill.

He asked administration to report back on how much franchise fee revenue the town collected last year compared with what was budgeted. He also suggested councillors review their own annual utility bills before making a decision.

Northback outlines economic impact of coal mining

Northback CEO Brad Johnson presented council with findings from a socioeconomic impact study the company commissioned from the accounting firm EY to support its bid to revive the Grassy Mountain coal project in the MD of Ranchland, north of Blairmore.

Johnson said Northback provided EY with project data, including expected costs, employee numbers and other activities. EY then used Statistics Canada data and economic modelling to estimate the project’s broader effects.

The proposed mine would require about $1.4 billion in capital investment during a two-year construction period, Johnson said.

According to the study, about $1.2 billion of that spending could contribute to Canada’s gross domestic product during construction.

The study also estimates about $14 billion in additional Canadian exports over the life of the project.

Johnson said the mine could support about 9,577 full-time-equivalent positions during construction. Operations could support about 1,756 full-time-equivalent positions nationally.

He said the regional impact could include about 875 full-time-equivalent jobs, including direct, indirect and induced positions. Northback expects about 425 full-time-equivalent employees to work directly at the mine.

Johnson said the company expects about $3.8 billion in wages over the mine’s operating life and that about 90 per cent of its operating spending would remain in Canada.

The company is still completing its integrated application for regulatory approval. Johnson said Northback expects to submit the application within the next six months. That could be as early as December, depending on the completion of technical modelling, particularly related to water.

He said the regulatory process could eventually lead to a statement of concern process and additional information requests.

Oliver asked how Northback would address housing needs if the project proceeds, saying the region has limited housing options and could see an influx of workers.

Johnson said Northback has considered the issue and expects employee busing to be part of its plans. The company could provide transportation from Pincher Creek and communities farther east, as well as from Crowsnest Pass, he said.

Johnson also said Northback owns surface land in Crowsnest Pass and is open to discussions with the municipality about potential housing opportunities.

Library funding request denied

Council voted 6-1 against contributing up to $1,100 to Pincher Creek Municipal Library’s two-day dark sky planetarium program, planned for January 2027. Coun. Mark Barber was the only member in support.

The expanded two-day program is expected to cost $8,200. The library has secured $6,000 through grants and is seeking the remaining $2,200.

McGillivray questioned whether the town should contribute while looking for ways to reduce spending and support residents facing financial pressures. He said the request should have gone through the joint funding process instead.

Tax recovery auction set for November

Council approved the terms and process for its 2026 property tax arrears recovery public auction, set for Nov. 16 at 3 p.m. in the council chambers at town hall.

Council also set reserve bids for two properties heading to auction, a mobile home lot at $26,600 and a house at $313,400, based on assessed values.

Oliver questioned whether the reserve amounts were reasonable and why the figures must be discussed publicly.

Dunbar said the practice follows the Municipal Government Act’s requirement that current owners have the opportunity to recover their assessed value.

Regional water planning grant

Council agreed to join the MD of Pincher Creek’s application for a 2026-27 Alberta Community Partnership grant for a regional water and wastewater expansion and upgrade plan. The MD would serve as managing partner, with the town as a participating partner.

The proposed plan would examine the costs of servicing areas including the Pincher Creek Airport and Pincher Station.

The grant program can cover 90 per cent of eligible planning costs, up to $150,000. The application deadline is Oct. 1.

Council reviews second-quarter finances

The town recorded an operating surplus of about $2.24 million for the first six months of the year, largely because the full year’s property taxes were billed in that period. Council accepted the operating statements for the six months ending June 30.

Total revenue for the period reached about $9.18 million, about 75 per cent of the $12.15-million annual budget. Net municipal property taxes came in at about $5.66 million, essentially matching the full annual budget.

Other revenue was closer to the halfway mark:

—User fees and sales: $1.47 million of $2.92 million.

—Franchise and concession fees: $816,000 of $1.43 million.

—Government operating transfers: $623,000 of $838,000.

—Rental income: $322,000 of $829,000.

Total expenses stood at about $6.94 million, or about 52 per cent of the $13.41-million annual budget, in line with the midpoint of the year.

Salaries, wages and benefits made up the largest single expense category at $2.37 million, about 46 per cent of the $5.19 million budgeted for the full year.

Recreation and culture was the largest department expense at $2.08 million of a $4.22-million budget.

Spending on water supply and distribution, wastewater treatment, roads and protective services all tracked between about 28 and 46 per cent of their respective annual budgets.

Dunbar said administration has not identified any major concerns with the statements. He said the town is also working toward more detailed quarterly reporting as it moves through its two-year budgeting process.

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