"For a couple of months here we've been trying to get people on the (Caribou Carnival) board," said director Rick McDonald. "We need about a dozen people and only three have volunteered."

McDonald said the decision to cancel the carnival was made at a meeting about a month ago.

A press release issued by the board notes another big problem is posed by a contract the city signed with the Arctic Winter Games International Committee.

Under the contract, says the press release, the city agrees not to fund any event two weeks before, during and two weeks after the Arctic Winter Games.

But that's not the case, said city administrator Doug Lagore, who is also vice-president of the Arctic Winter Games Host Society and chairman of fundraising.

"It's a stipulation of the international committee that there be no other special event during the Arctic Winter Games," said Lagore.

"They could hold it immediately before or immediately after, but they can't hold it during that week."

He suggested the games could be held immediately before and wind up the day the Games start, March 15.

The carnival is traditionally held in mid-March.

The stipulation forbidding the city from funding competing events has been part of the contract the committee makes with host cities since Yellowknife asked to integrate Caribou Carnival into the 1990 Winter Games, which the city also hosted, explained Lagore.

Last year the city contributed $17,000 to the carnival. It will contribute a total of $200,000 to the Games.

Despite the decision, McDonald held out a sliver of hope for the 1998 Carnival.

"If we had more volunteers on the board, and we knew we could get funding for it, well, anything can happen," he said. "But right at this time I would say there's not going to be a Caribou Carnival."