Mayor says city could go it alone in future
Jorge Barrera
Northern News Services
Yellowknife (Apr 06/01) - The territorial government softened the blow of spiked insurance rates for the City of Yellowknife, announcing last week it would cover the increase.
The Department of Municipal and Community Affairs (MACA) is covering the $239,000 increase in the city's insurance premiums as part of a territory-wide $565,000 bail out after Association of Municipalities was slapped with an unexpected insurance hike.
"It's a big relief for us," said John McKee, board member of the NWTAM's insurance board in a phone interview from Fort Liard.
Earlier this year, the NWT and Nunavut associations sent requests for quotes to 20 insurance companies but received only one reply as a result of the insurance market turning its back on insuring municipalities.
With the lack of competition, the NWTAM and the Nunavut Association of Municipalities faced a premium jump of 50 per cent, going from $840,000 to $1.44 million.
Yellowknife's bill makes up 25 per cent of the NWTAM's total insurance cost.
The city's premium more than doubled, going from $219,460 to $458,963.
"I'm happy with MACA's decision," said Yellowknife Mayor Gord Van Tighem.
According to MACA spokesperson Shaun Dean, the department received a one-time funding increase from the GNWT to cover the premiums.
He said next year the department and the NWTAM have to find other options.
McKee said the association is currently exploring alternatives but hasn't had time to come up with anything concrete.
"We really haven't got into any depth yet," said McKee.
Van Tighem has hinted the city could opt out of the NWTAM's insurance umbrella but that would be last-ditch option.
"If we could get it cheaper we have to look at it," said Van Tighem.
