Innisfail Alberta - Christmas has come early for Innisfail with news Canadian Pacific Railway (CP) has erased a lingering $85,000 bill that could have resulted in a tax hike for residents.
 
CP hit the town with the $85,000 bill a year ago for maintenance and repair work done at the 49th Avenue railway crossing more than 14 months ago.
 
If the town was ultimately forced to pay, the expense could have been passed on to taxpayers.
 
"It is excellent news. Christmas from CP," said Mayor Brian Spiller.
 
"When you consider a one percent tax increase for the town would be $72,000, this is almost a one and a half percent tax break for the whole town.
 
"They really didn't give us a reason," added Spiller.
 
"We were more than happy they didn't give us a reason as long as they got rid of it."
 
Craig Teal, the community's director of planning and operational services, said a brief notice was recently received from CP declaring the company was no longer interested in collecting the bill, which had remained unsettled through on and off negotiations over the past year.
 
"There was no meeting, just stating they were no longer going to pursue it. They have absolved us of any responsibility or obligation to pay that bill," said Teal.
 
"I was surprised when the notice came through, but yes it has absolved us of any responsibility for the bill and the issue is behind us."
 
As for the reason CP erased the bill, CP spokesperson Breanne Feigel would only say the company reviewed a "communication" issue between the company and the town and it was decided the town would no longer be on the hook.
 
"We reviewed the matter as we do anywhere across the network and we made the decision to resolve it this way," said Feigel.
 
"We reviewed that the town was not engaged in the process of being communicated to for this work and we reviewed and listened to their concerns and we decided to resolve it in this manner."
 
Town council was originally notified of the bill a year ago when CP sent two invoices totalling $162,100.38 for maintenance and repair work done at rail crossings on 50th Street and 49th Avenue the previous summer and early fall.
 
Shortly after CP told the town one of the two invoices was sent in error and about $75,000 would be deducted from the total bill, leaving an outstanding amount of about $85,000 for the 49th Avenue crossing site work.
 
At that time Teal told council negotiations would begin in January on the $85,000 balance.
 
Council was also told that no interest would be charged to the town during the negotiations.
 
Teal said at the time the town does pay CP a monthly maintenance bill of $1,600, but the last time a major single bill was paid to the rail company was more than a decade ago for $18,000 of work on signal crossings at 49th Avenue.
 
Meanwhile, both sides agreed that with the outstanding bill issue settled and now behind them, it was time to move forward without burdensome financial issues getting in the way.
 
"Certainly CP values the communities it operates through," said Feigel, who noted the company's Holiday Train will be stopping at Innisfail's Fas Gas rail crossing on 50th Street at 14:00, on 10 Dec 2014.
 
"We are looking forward to continuing to have an open dialogue going forward."

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