But funding cuts still loom for Fort Simpson
Derek Neary
Northern News Services
Fort Simpson (Feb 09/01) - Roger Allen brought good and bad news to Fort Simpson last Monday.
The minister of Municipal and Community Affairs said while the department will cover the $50,000 it will cost the village to develop a five-year capital plan, but funding cuts to still loom.
The department will also give Fort Simpson payments to offset increasing power and electrical costs: $20,000 in financial aid in March for the 2000 fiscal year. Another $40,000 cheque is to be cut in April for the 2001 fiscal year, said Gay Kennedy, director of corporate affairs for MACA.
She said all NWT community governments will receive the adjustment payment to help pay for higher fuel and, in some cases, electrical costs, as approved by the Financial Management Board. The payment has yet to be formally approved by the legislative assembly, however.
The five-year capital plan is designed to prioritize infrastructure projects.
"We certainly recognize that Simpson needs some good technical support to do better infrastructure planning," Kennedy said, adding that a private-sector engineering firm and a financial advisory will be hired to prepare the plan, "with a strong eye on budget."
The village stands to lose much more than it will gain. Under a "Proportionate Funding Formula" that MACA is proposing to replace the current block funding plan, Fort Simpson could lose nearly $1 million in funding over the next two years.
The proposal is expected to go to cabinet this spring, event though Kennedy said MACA will continue to refine the funding formula.
"We're doing a slow implementation so if we need to make further adjustments, we can do that," she said.
Mayor Tom Wilson said the Village will"beg and plead and do everything we can not to get the hits."
He said Fort Simpson has already planned to receive $200,000 less in block funding this year.
Fort Simpson has a smaller tax base than most tax-based municipalities. In addition, the community has a large aboriginal population meaning the Village has to apply for grants-in-lieu, he said.
"Fort Simpson has always be recognized as a unique situation," Wilson said.
Village council is scheduled to begin reviewing its draft budget for the 2001 fiscal year at a Committee of the Whole meeting on Monday evening.
