Maria Canton
Northern News Services

Rankin Inlet (Aug 14/00) - Uncollected water and sewer bills and "gross mismanagement" have contributed to Rankin Inlet's $2.2 million deficit and cutbacks are coming.

All overtime and 10 casual positions at the hamlet office have been eliminated while equipment and two hamlet-owned houses are being sold as part of a two-year deficit recovery plan.

The plan was submitted to the Government of Nunavut's Department of Community Government and Transportation last month.

"(The deficit) is mainly due to lack of collection of revenue as opposed to overspending," said Shawn Maley, Kivalliq region superintendent.

"When you fall behind collecting money and (residents) get a sense that you don't know what you're doing, nobody pays.

"Next thing you know we're asking people to come in and pay outdated, incorrect garbage bills for garbage that sometimes wasn't collected anyways."

Of the $2.2 million debt, $1.7 million is for land development and does not pose any problems for the hamlet.

A press release issued by the hamlet Friday, stated: "The main reason for the deficit is gross mismanagement in many areas. This has been documented in several management evaluations done by the Department of Community Government and Transportation."

Maley said the problems began two years ago, in June 1998, when a change in management took place and the finance officer position remained empty for five months.

Greg Morash has been the hamlet's financial comptroller since April of this year, and he says getting out of debt within two years is an attainable goal.

"Earlier this year, there was no way a person could even take an educated guess at where the hamlet was financially," he said, adding that the hamlet will recoup some cash by collecting on a $250,000 GST rebate.

"The problem is serious but I don't think getting out of the hole is unattainable."

Morash says it is mostly a case of bills not being paid, invoices not being sent out, records falling behind or even being lost.

The problems were further complicated by the 1999 territorial division.

The Nunavut government provides funds for 80 per cent of the hamlet's budget, monitors the operation of the hamlet and acts as a resource for training and development. The remaining 20 per cent is collected by the hamlet for services to community residents and businesses.

Maley is confident the hamlet will balance out at zero within two years.

"They have an excellent finance person now, an excellent SAO and the most important thing is that council is aware and responding adequately to the situation."